Before the market opens on Thursday, Extreme Networks (NASDAQ:EXTR) will be joining the S&P SmallCap 600 market index. This is significant news for a number of reasons. For starters, as we approach Thursday, Extreme Networks is starting to see some gains in its stock price. Second, with Extreme Networks joining the S&P SmallCap 600 market index, it means Time Inc. is being replaced.
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Extreme Networks had a relatively positive year in 2017. It closed a number of small, yet strategically important, buyouts. However, investors seem to be more excited about the fact that Extreme Network is now on the larger side for an index.
As of this writing, Extreme Networks is trading at $15.05, putting the stock up $1.29, or $9.38. For those who don’t know, Extreme Networks is a networking company known primarily for providing software-driven networking solutions. The company is based in San Jose, California, which has a population of roughly 1.025 million.
Yet another reason why the company’s stock might be trading up today is that the market is aware that it needs to purchase some of the company’s shares. More specifically, any exchange-traded funds that follow the S&P SmallCap 600 market index will need to purchase shares of the company.
Further, Extreme Networks also announced today that it will be honoring Eufaula City Schools with the Extreme Exemplary School Award. The Eufaula City Schools consist of the following: Eufaula Primary School, Eufaula Elementary School, Admiral Moorer Middle School, and Eufaula High School. Based on today’s increase, I would say investors are pleased with this decision to grant Eufaula city Schools with the award.
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The company is set to announce its Q2 fiscal 2018 financial results on February 6, so it will be important for investors keep an eye on the company to see if it can maintain a steady growth leading up to the report.
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