Form 4: Extreme Networks Exec Trades Shares Under 10b5-1 Plan

Kevin R. Rhodes, EVP and CFO of Extreme Networks Inc., reported transactions involving common stock and restricted stock units under a pre-arranged trading plan.

Summary

• Kevin R. Rhodes, the Executive Vice President and Chief Financial Officer of Extreme Networks Inc., has reported several transactions related to the company's common stock.
• On May 14, 2026, 12,410 shares of common stock were disposed of at a price of $25 per share, as part of a 10b5-1 trading plan established on May 23, 2025.
• Following this disposition, Mr. Rhodes beneficially owns 145,722 shares of common stock directly.
• On May 15, 2026, 9,818 restricted stock units (RSUs) were acquired, with a transaction code 'M', indicating a release of RSUs. The value of these RSUs was $0, and they are subject to vesting conditions.
• Also on May 15, 2026, 4,355 shares were disposed of at a price of $24.66 per share, identified as shares withheld for tax payments related to the release of share awards.
• After these transactions, Mr. Rhodes directly beneficially owns 151,185 shares of common stock.
• The RSUs acquired on May 15, 2026, are time-based and vest over a period starting from the original grant date, with 1/3 vesting on the first anniversary and 1/12 quarterly thereafter, with an expiration date of August 15, 2027.
• A Power of Attorney document was also filed, appointing individuals to execute Section 16 reporting forms on behalf of Kevin R. Rhodes.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this filing as neutral, as it reports routine transactions under a pre-established plan and standard tax withholding, without indicating significant positive or negative shifts in the executive's personal investment strategy or company outlook.

Positives

• The transactions were executed under a Rule 10b5-1 trading plan, which is designed to provide an affirmative defense against allegations of insider trading by establishing a predetermined plan for buying or selling securities.
• The release of RSUs indicates the fulfillment of performance or time-based vesting conditions, potentially reflecting positive performance or tenure.
• The filing is up-to-date with transactions occurring on May 14-15, 2026.

Negatives

• A significant number of shares (12,410) were disposed of on May 14, 2026, under the 10b5-1 plan.
• Additional shares (4,355) were disposed of to cover tax withholding obligations, indicating a reduction in the number of shares held by the executive.

Risks

• The disposition of a substantial number of shares under a 10b5-1 plan, even if pre-arranged, could be interpreted by the market as a signal of the executive's reduced confidence in future stock performance.
• The withholding of shares for tax payments, while standard practice, reduces the net number of shares received by the executive.

Future Outlook

The filing does not contain forward-looking statements or guidance. It solely reports on past transactions.

Management Comments

• "Transaction pursuant to the Reporting Person's 10b5-1 Plan dated 05/23/2025."
• "Represents shares withheld from the released share award for the payment of applicable income and payroll withholding taxes due on release."
• "This Time-based RSU award vests from the original grant date as to 1/3 on the one year anniversary and 1/12 each quarter thereafter."

Industry Context

StockSavvy.ai notes that the use of 10b5-1 plans by executives is a common practice in the technology sector to manage personal stock holdings while adhering to insider trading regulations. The reported transactions are typical for an executive managing vested equity awards and fulfilling tax obligations.

Stakeholder Impact

• Shareholders: The disposition of shares by an executive, even under a 10b5-1 plan, may lead to short-term market perception shifts, though the plan itself is designed to mitigate insider trading concerns.
• Employees: The release of RSUs and subsequent tax withholding is a standard process for employees receiving equity compensation.
• Management: The filing confirms adherence to reporting requirements for beneficial ownership changes.

Next Steps

• The vesting of remaining RSUs according to the schedule outlined in the filing.
• Future transactions under the 10b5-1 plan, if any, will be reported on subsequent Form 4 filings.

Key Dates

Keywords

Extreme Networks, EXTR, Form 4, Insider Trading, 10b5-1 Plan, Kevin R. Rhodes, Stock Transaction, Restricted Stock Units, Beneficial Ownership, SEC Filing