Extreme Networks Stock Buy Hold or Sell Recommendation

EXTR Stock  USD 11.54  0.03  0.26%   
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Extreme Networks is 'Cautious Hold'. Macroaxis provides Extreme Networks buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding EXTR positions. The advice algorithm takes into account all of Extreme Networks' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Extreme Networks' buy or sell advice are summarized below:
Real Value
13.04
Target Price
32.88
Hype Value
11.54
Market Value
11.54
Naive Value
11.12
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Extreme Networks given historical horizon and risk tolerance towards Extreme Networks. When Macroaxis issues a 'buy' or 'sell' recommendation for Extreme Networks, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Extreme Networks Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
To learn how to invest in Extreme Stock, please use our How to Invest in Extreme Networks guide.
In addition, we conduct extensive research on individual companies such as Extreme and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Extreme Networks. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.

Execute Extreme Networks Buy or Sell Advice

The Extreme recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Extreme Networks. Macroaxis does not own or have any residual interests in Extreme Networks or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Extreme Networks' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Extreme NetworksBuy Extreme Networks
Cautious Hold

Market Performance

Very WeakDetails

Volatility

Not too volatileDetails

Hype Condition

StaleDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Hyperactively responds to market trendsDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Reporting Quality (M-Score)

UnavailableDetails
For the selected time horizon Extreme Networks has a Mean Deviation of 1.58, Standard Deviation of 2.88 and Variance of 8.31
Our trade advice tool can cross-verify current analyst consensus on Extreme Networks and to analyze the company potential to grow in the current economic cycle. To make sure Extreme Networks is not overpriced, please confirm all Extreme Networks fundamentals, including its debt to equity, and the relationship between the gross profit and price to earnings to growth . Given that Extreme Networks has a price to earning of 57.61 X, we urge you to verify Extreme Networks market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Extreme Networks Trading Alerts and Improvement Suggestions

Extreme Networks generated a negative expected return over the last 90 days
Extreme Networks is unlikely to experience financial distress in the next 2 years
The company currently holds 264.61 M in liabilities with Debt to Equity (D/E) ratio of 3.89, implying the company greatly relies on financing operations through barrowing. Extreme Networks has a current ratio of 0.96, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist Extreme Networks until it has trouble settling it off, either with new capital or with free cash flow. So, Extreme Networks' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Extreme Networks sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Extreme to invest in growth at high rates of return. When we think about Extreme Networks' use of debt, we should always consider it together with cash and equity.
Over 94.0% of Extreme Networks shares are held by institutions such as insurance companies
Latest headline from MacroaxisInsider: Disposition of 31240 shares by Katayoun Motiey of Extreme Networks subject to Rule 16b-3

Extreme Networks Returns Distribution Density

The distribution of Extreme Networks' historical returns is an attempt to chart the uncertainty of Extreme Networks' future price movements. The chart of the probability distribution of Extreme Networks daily returns describes the distribution of returns around its average expected value. We use Extreme Networks price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Extreme Networks returns is essential to provide solid investment advice for Extreme Networks.
Mean Return
-0.61
Value At Risk
-4.69
Potential Upside
1.94
Standard Deviation
2.88
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Extreme Networks historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Extreme Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Extreme Networks is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Extreme Networks backward and forwards among themselves. Extreme Networks' institutional investor refers to the entity that pools money to purchase Extreme Networks' securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Millennium Management Llc2023-12-31
2.3 M
Voss Capital Llc2023-12-31
2.2 M
Norges Bank2023-12-31
1.9 M
Boston Partners Global Investors, Inc2023-12-31
1.7 M
Nuveen Asset Management, Llc2023-12-31
1.7 M
Ameriprise Financial Inc2023-12-31
1.7 M
Jacobs Levy Equity Management, Inc.2023-09-30
1.7 M
Man Group Plc2023-12-31
1.6 M
Congress Asset Management Company, Llp2023-12-31
1.4 M
Blackrock Inc2023-12-31
18.3 M
Vanguard Group Inc2023-12-31
13 M
Note, although Extreme Networks' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Extreme Networks Cash Flow Accounts

201920202021202220232024 (projected)
Change To Inventory20.0M22.7M(16.7M)(41.8M)(48.1M)(45.7M)
Change In Cash24.3M53.0M(52.4M)40.3M46.3M48.7M
Free Cash Flow20.6M127.4M112.7M235.4M270.7M284.3M
Depreciation63.8M55.3M40.2M34.9M40.1M32.1M
Other Non Cash Items29.2M25.6M19.8M5.8M5.2M5.0M
Capital Expenditures15.3M17.2M15.4M13.8M12.4M13.2M
Net Income(126.8M)1.9M44.3M78.1M89.8M94.3M
End Period Cash Flow193.9M246.9M194.5M234.8M270.0M283.6M
Change To Netincome52.4M50.3M63.9M57.4M66.0M69.3M
Investments45.2M(17.2M)(85.0M)(13.8M)(12.4M)(13.0M)
Net Borrowings220.0M(74M)(38.1M)(86.8M)(78.1M)(74.2M)

Extreme Networks Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Extreme Networks or Communications Equipment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Extreme Networks' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Extreme stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.94
β
Beta against NYSE Composite2.57
σ
Overall volatility
2.98
Ir
Information ratio -0.26

Extreme Networks Volatility Alert

Extreme Networks exhibits very low volatility with skewness of -4.13 and kurtosis of 24.6. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Extreme Networks' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Extreme Networks' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Extreme Networks Fundamentals Vs Peers

Comparing Extreme Networks' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Extreme Networks' direct or indirect competition across all of the common fundamentals between Extreme Networks and the related equities. This way, we can detect undervalued stocks with similar characteristics as Extreme Networks or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Extreme Networks' fundamental indicators could also be used in its relative valuation, which is a method of valuing Extreme Networks by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Extreme Networks to competition
FundamentalsExtreme NetworksPeer Average
Return On Equity0.83-0.31
Return On Asset0.0723-0.14
Profit Margin0.06 %(1.27) %
Operating Margin0.07 %(5.51) %
Current Valuation1.51 B16.62 B
Shares Outstanding128.73 M571.82 M
Shares Owned By Insiders2.64 %10.09 %
Shares Owned By Institutions93.66 %39.21 %
Number Of Shares Shorted11.34 M4.71 M
Price To Earning57.61 X28.72 X
Price To Book13.77 X9.51 X
Price To Sales1.11 X11.42 X
Revenue1.31 B9.43 B
Gross Profit629.94 M27.38 B
EBITDA149.62 M3.9 B
Net Income78.07 M570.98 M
Cash And Equivalents194.52 M2.7 B
Cash Per Share1.48 X5.01 X
Total Debt264.61 M5.32 B
Debt To Equity3.89 %48.70 %
Current Ratio0.98 X2.16 X
Book Value Per Share0.84 X1.93 K
Cash Flow From Operations249.21 M971.22 M
Short Ratio4.90 X4.00 X
Earnings Per Share0.60 X3.12 X
Price To Earnings To Growth0.85 X4.89 X
Target Price14.58
Number Of Employees2.85 K18.84 K
Beta1.91-0.15
Market Capitalization1.49 B19.03 B
Total Asset1.14 B29.47 B
Retained Earnings(856 M)9.33 B
Working Capital657 K1.48 B
Note: Disposition of 31240 shares by Katayoun Motiey of Extreme Networks subject to Rule 16b-3 [view details]

Extreme Networks Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Extreme . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Extreme Networks Buy or Sell Advice

When is the right time to buy or sell Extreme Networks? Buying financial instruments such as Extreme Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total351.1M264.6M304.3M187.4M
Total Assets1.1B1.1B1.3B1.4B

Use Investing Ideas to Build Portfolios

In addition to having Extreme Networks in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Penny Thematic Idea Now

Penny
Penny Theme
Solid stocks, funds or ETFs with below average market capitalization and typicl daily price below 2. The Penny theme has 55 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Penny Theme or any other thematic opportunities.
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When determining whether Extreme Networks is a strong investment it is important to analyze Extreme Networks' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Extreme Networks' future performance. For an informed investment choice regarding Extreme Stock, refer to the following important reports:
Check out Extreme Networks Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
To learn how to invest in Extreme Stock, please use our How to Invest in Extreme Networks guide.
You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

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Is Extreme Networks' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Extreme Networks. If investors know Extreme will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Extreme Networks listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.77)
Earnings Share
0.6
Revenue Per Share
10.456
Quarterly Revenue Growth
(0.07)
Return On Assets
0.0723
The market value of Extreme Networks is measured differently than its book value, which is the value of Extreme that is recorded on the company's balance sheet. Investors also form their own opinion of Extreme Networks' value that differs from its market value or its book value, called intrinsic value, which is Extreme Networks' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Extreme Networks' market value can be influenced by many factors that don't directly affect Extreme Networks' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Extreme Networks' value and its price as these two are different measures arrived at by different means. Investors typically determine if Extreme Networks is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Extreme Networks' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.