Have Extreme Networks Insiders Been Selling Stock?

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We wouldn't blame Extreme Networks, Inc. (NASDAQ:EXTR) shareholders if they were a little worried about the fact that Edward Kennedy, the Independent Director recently netted about US$500k selling shares at an average price of US$20.01. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.9%.

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Extreme Networks Insider Transactions Over The Last Year

In fact, the recent sale by Edward Kennedy was the biggest sale of Extreme Networks shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$20.61). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 3.9% of Edward Kennedy's stake.

Extreme Networks insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Extreme Networks

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Insider Ownership Of Extreme Networks

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Extreme Networks insiders own about US$79m worth of shares. That equates to 2.9% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Extreme Networks Tell Us?

An insider hasn't bought Extreme Networks stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Extreme Networks has 1 warning sign and it would be unwise to ignore this.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.