Recent insider trends for Extreme Networks, Inc. (NASDAQ:EXTR) have caught the attention of investors. Analysts study insider data to get a sense of sense of what key shareholders think about the outlook for a particular stock. In the case of EXTR, the data has some interesting implications for where the stock might be headed.
Institutions own 82.30% of Extreme Networks, Inc. (EXTR)’s shares. The total value of these holdings, in millions, is $1,408. Among active positions in the latest quarter, 98 holders increased their positions by a total of 15.43 million shares, 104 holders decreased the positions by a total of 12.61 million shares, and 24 holders held their positions. This works out to a net increase in ownership of 2.82 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 30 holders initiated new positions by a total of 4.91 million shares and 29 holders exited their positions by a total of 3.09 million shares. This nets out to an increase of 1.82 million shares and is a bullish sign for EXTR.
In the last three months, insiders executed a total of 7 trades. 7 were sells. Insider ownership decreased by a total of 73085 shares, which suggests that EXTR’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 3 buys and 15 sells, and ownership decreased by a net of 557268 shares.
Short interest, or the number of a stock’s tradable shares currently being shorted, is another metric investors use to get a pulse on sentiment. Extreme Networks, Inc. (NASDAQ:EXTR)’s short interest is 2.54 million shares, or 2.28% of the float. This represents an increase of 8% in the number of shares being shorted compared to the previous reading, and implies that investors felt more pessimistic about the stock during the past two weeks.
Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that EXTR is a Strong buy, which implies that EXTR is expected to outperform the market based on prior trading patterns.
Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that Extreme Networks, Inc. (NASDAQ:EXTR) is undervalued.