Extreme Networks Inc. (NASDAQ:EXTR) Relative Strength Index (RSI) is 54.55, with weekly volatility at 2.84% and ATR at 0.42. The EXTR stock’s 52-week price range has touched low of $3.73 and a $12.06 high. Intraday shares traded counted 0.67 million, which was 49.35% higher than its 30-day average trading volume of 1.33M. Its shares traded lower over the last trading session, losing -2.93% on 06/09/21. The shares fell to a low of $11.23 before closing at $11.26. EXTR’s previous close was $11.60 while the outstanding shares total 124.79M. The firm has a beta of 2.04.
Investors have identified the Communication Equipment company Extreme Networks Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $1.40 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Extreme Networks Inc. (EXTR) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For EXTR, the company has in raw cash 203.14 million on their books with 21.31 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 420.88 million total, with 414.89 million as their total liabilities.
EXTR were able to record 75.18 million as free cash flow during the 08/11/2021 quarter of the year, this saw their quarterly net cash flow reduce by 9.27 million. In cash movements, the company had a total of 87.5 million as operating cash flow.
Potential earnings growth for Extreme Networks Inc. (EXTR)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/11/2021 quarter of the year, Extreme Networks Inc. recorded a total of 253.4 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 17.32% coming in sequential stages and their sales for the 08/11/2021 quarter increasing by 4.45%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 104.59 million trying to sell their products during the last quarter, with the result yielding a gross income of 148.81 million. This allows shareholders to hold on to 124.79M with the recently reported earning now reading 0.03 cents per share. This is a figure that compared to analystâ€™s prediction for their 08/11/2021 (0.09 cents a share).
Having a look at the companyâ€™s valuation, the company is expected to record 0.43 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on EXTR sounds very interesting.
Is the stock of EXTR attractive?
In related news, PRESIDENT AND CEO, MEYERCORD EDWARD sold 25,000 shares of the companyâ€™s stock in a transaction that recorded on Jun 01. The sale was performed at an average price of 11.43, for a total value of 285,815. As the sale deal closes, the Director, CARINALLI CHARLES now sold 37,428 shares of the companyâ€™s stock, valued at 436,126. Also, Director, CARINALLI CHARLES sold 14,317 shares of the companyâ€™s stock in a deal that was recorded on May 19. The shares were price at an average price of 10.87 per share, with a total market value of 155,627. Following this completion of acquisition, the Director, CARINALLI CHARLES now holds 15,000 shares of the companyâ€™s stock, valued at 159,000. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.80%.
3 out of 6 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on Extreme Networks Inc.. 0 analysts has assigned a Sell rating on the EXTR stock. The 12-month mean consensus price target for the companyâ€™s shares has been set at $13.00.