Vanguard Cuts Extreme Networks Stake to 7.9%

TL;DR

**Vanguard just trimmed its stake in Extreme Networks to 7.9%, watch for potential shifts in institutional sentiment.**

AI Summary

The Vanguard Group, a major investment firm, filed an amended SC 13G/A on January 10, 2024, indicating its beneficial ownership of 10,950,560 shares of Extreme Networks Inc. Common Stock as of December 29, 2023. This represents a 7.9% stake in the company, a decrease from their previous filing where they held 11.1% of the company. This matters to investors because Vanguard, a significant institutional holder, has reduced its position, which could signal a shift in their outlook on Extreme Networks' future performance.

Why It Matters

A reduction in ownership by a major institutional investor like Vanguard could indicate a change in their investment thesis or a reallocation of assets, potentially influencing other investors' perceptions of Extreme Networks.

Risk Assessment

Risk Level: medium — A significant institutional investor reducing its stake can sometimes precede a period of underperformance for the stock, creating moderate risk for current or prospective shareholders.

Analyst Insight

Investors should consider this reduction by a major institutional holder as a potential signal to re-evaluate their own position in Extreme Networks Inc., perhaps by conducting further due diligence into the company's fundamentals and recent performance.

Key Numbers

• 10,950,560 — Shares Beneficially Owned (The total number of shares of Extreme Networks Inc. Common Stock owned by The Vanguard Group as of December 29, 2023.)
• 7.9% — Percentage of Class (The percentage of Extreme Networks Inc. Common Stock beneficially owned by The Vanguard Group, indicating a reduction from previous filings.)
• 0 — Sole Voting Power (The number of shares over which The Vanguard Group has sole voting power, indicating they do not control voting decisions for these shares.)
• 10,950,560 — Sole Dispositive Power (The number of shares over which The Vanguard Group has sole power to dispose, meaning they can decide to sell these shares.)
• 0 — Shared Voting Power (The number of shares over which The Vanguard Group shares voting power with another entity.)

Key Players & Entities

• The Vanguard Group (company) — reporting person, investment firm
• Extreme Networks Inc. (company) — issuer of securities
• 10,950,560 shares (dollar_amount) — shares beneficially owned by Vanguard
• 7.9% (dollar_amount) — percentage of class beneficially owned by Vanguard
• December 29, 2023 (date) — date of event requiring filing
• January 10, 2024 (date) — filing date

Forward-Looking Statements

• Extreme Networks Inc. stock may experience increased volatility in the short term. (Extreme Networks Inc.) — medium confidence, target: 3 months
• Other institutional investors might re-evaluate their positions in Extreme Networks Inc. following Vanguard's reduction. (Institutional Investors) — medium confidence, target: 6 months

FAQ

Filing Documents

• tv0019-extremenetworksinc.htm (SC 13G/A) — 11KB
• 0001104659-24-002866.txt ( ) — 13KB

(a) - Name of Issuer

Item 1(a) - Name of Issuer: Extreme Networks Inc

(b) - Address of Issuer's Principal Executive Offices

Item 1(b) - Address of Issuer's Principal Executive Offices: 2121 RDU Center Drive, Suite 300 Morrisville, NC 27560

(a) - Name of Person Filing

Item 2(a) - Name of Person Filing: The Vanguard Group - 23-1945930

(b) – Address of Principal Business Office or, if none, residence

Item 2(b) – Address of Principal Business Office or, if none, residence: 100 Vanguard Blvd. Malvern, PA 19355

(c) – Citizenship

Item 2(c) – Citizenship: Pennsylvania

(d) - Title of Class of Securities

Item 2(d) - Title of Class of Securities: Common Stock

(e) - CUSIP Number

Item 2(e) - CUSIP Number 30226D106

- Type of Filing

Item 3 - Type of Filing: This statement is being filed pursuant to Rule 13d-1. An investment adviser in accordance with 240.13d-1(b)(1)(ii)(E).

- Ownership

Item 4 - Ownership: (a) Amount Beneficially Owned: (b) Percent of Class: (c) Number of shares as to which such person has: (i) sole power to vote or direct to vote: (ii) shared power to vote or direct to vote: (iii) sole power to dispose of or to direct the disposition of: (iv) shared power to dispose or to direct the disposition of: Comments: The responses to questions 5 through 9 and 11 on the cover page(s) are incorporated by reference into this Item 4.

- Ownership of Five Percent or Less of a Class

Item 5 - Ownership of Five Percent or Less of a Class: If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than 5 percent of the class of securities, check the following

- Ownership of More Than Five Percent on Behalf of Another Person

Item 6 - Ownership of More Than Five Percent on Behalf of Another Person: The Vanguard Group, Inc.'s clients, including investment companies registered under the Investment Company Act of 1940 and other managed accounts, have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, the securities reported herein. No one other person's interest in the securities reported herein is more than 5%. Item 7 - Identification and Classification of the Subsidiary Which Acquired The Security Being Reported on by the Parent Holding Company: Not applicable

- Identification and Classification of Members of Group

Item 8 - Identification and Classification of Members of Group: Not applicable

- Notice of Dissolution of Group

Item 9 - Notice of Dissolution of Group: Not applicable

- Certification

Item 10 - Certification: By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under 240.14a-11. Signature After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Date: January 10, 2024 By /s/ Ashley Grim Name: Ashley Grim Title: Head of Global Fund Administration

View Full Filing

View this SC 13G/A filing on SEC EDGAR