EVP CFO Kevin Rhodes sells $486,697 of Extreme Networks stock

In a recent transaction, Kevin R. Rhodes, the Executive Vice President and Chief Financial Officer at Extreme Networks Inc., sold 21,825 shares of the company's stock on August 21, 2026. The sale, executed in line with a pre-established 10b5-1 trading plan, amounted to $486,697, with each share priced at $22.3. This move comes as Extreme Networks' stock price has seen a decline of approximately 6% over the past week, though it has still managed to rise by 64% over the last six months.

Following the sale, Rhodes still holds a direct beneficial ownership of 196,803 shares of the company's common stock. The company, currently valued at $2.91 billion, trades with a price-to-earnings ratio of 74. InvestingPro's analysis suggests that the stock may be undervalued based on its Fair Value assessment, with additional insights available through InvestingPro for those interested.

In other news, Extreme Networks reported stronger-than-expected fiscal fourth-quarter earnings and revenue during its recent earnings call. The company reported adjusted earnings of $0.32 per share, surpassing the expected $0.29, and revenue of $338.6 million, exceeding the forecast of $332.5 million. Despite these strong results, analysts remain cautious about a softer growth outlook for the upcoming year, which has contributed to a decline in the stock's premarket trading.

Looking at the broader fiscal year, Extreme Networks experienced a 13% increase in revenue, reaching $1.28 billion, and a 26% rise in adjusted earnings per share to $1.06. The company's gross margin improved to 62.7%, driven by strategic pricing and effective supply-chain management. Moreover, their AI-powered networking platform, Platform One, contributed significantly to the quarter's subscription bookings, accounting for nearly half of the net new subscriptions.

For fiscal year 2026, the company closed with strong momentum, marking nine consecutive quarters of sequential product revenue growth. While investors remain focused on the slower expected growth in fiscal 2027, the company's recent financial performance has been robust.