Calix (NYSE:CALX) Shares Gap Down – Should You Sell?

Shares of Calix, Inc (NYSE:CALX) gapped down before the market opened on Thursday . The stock had previously closed at $52.96, but opened at $47.86. Calix shares last traded at $47.37, with a volume of 720,446 shares.

Key Calix News

Here are the key news stories impacting Calix this week:

• Positive Sentiment: Calix beat revenue and EPS expectations for Q4 and showed strong year‑over‑year revenue growth — revenue ~ $272M and an EPS beat in outlets reporting $0.39. Investors often view topline beats as confirmation the business is scaling. Calix Tops Q4 Earnings
• Positive Sentiment: Calix raised Q1 FY2026 guidance for both EPS (range 0.340–0.400 vs. consensus ~0.280) and revenue (~$275M–$281M vs. ~$272M consensus), which signals management expects continued demand. Press Release / Guidance
• Positive Sentiment: Board authorized a $125M buyback (up to ~3.4% of shares), a capital allocation move that typically supports the share price and signals management thinks the stock is undervalued. Buyback Announcement
• Positive Sentiment: Rosenblatt and other analysts maintain bullish ratings and high price targets (median targets in recent notes well above the current price), providing additional buy‑side catalysts. Rosenblatt Reiterates Buy
• Neutral Sentiment: Some writeups highlight large upside to consensus price targets (~54.8% per one roundup) but also caution that price‑target moves are an imperfect signal; this is market color rather than new company fundamentals. Analyst Price Target Note
• Neutral Sentiment: Institutional activity shows both large additions and reductions across funds — increased ownership from some big managers but also notable trims — which can amplify volatility around earnings. Quiver Institutional Activity
• Negative Sentiment: Some reports highlighted weaker GAAP profit metrics or lower EPS figures (different outlets reported conflicting EPS/earnings details and noted operating profit and net income were down), creating confusion and prompting investors to sell into the rally. Conflicting Profit Metrics

Analyst Upgrades and Downgrades

Several equities research analysts have commented on CALX shares. Weiss Ratings restated a “sell (d-)” rating on shares of Calix in a research note on Monday, December 29th. Zacks Research cut Calix from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, December 30th. UBS Group restated an “outperform” rating and set a $75.00 price objective on shares of Calix in a research note on Friday, October 31st. Roth Mkm set a $85.00 target price on shares of Calix and gave the company a “buy” rating in a research note on Thursday, October 30th. Finally, Craig Hallum reiterated a “buy” rating and issued a $75.00 price objective on shares of Calix in a report on Friday, October 31st. Six investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $82.00.

Calix Trading Down 14.4%

The stock has a market cap of $3.01 billion, a price-to-earnings ratio of -377.83 and a beta of 1.55. The company has a fifty day simple moving average of $54.69 and a 200-day simple moving average of $57.79.

Calix (NYSE:CALX) last released its earnings results on Wednesday, October 29th. The communications equipment provider reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.34 by $0.10. The business had revenue of $265.44 million for the quarter, compared to the consensus estimate of $246.21 million. Calix had a negative net margin of 0.78% and a negative return on equity of 0.69%. The firm’s quarterly revenue was up 32.1% compared to the same quarter last year. During the same period last year, the firm posted $0.13 earnings per share. As a group, analysts anticipate that Calix, Inc will post -0.43 earnings per share for the current year.

Calix announced that its Board of Directors has approved a share buyback program on Wednesday, January 28th that allows the company to buyback $125.00 million in shares. This buyback authorization allows the communications equipment provider to purchase up to 3.4% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its stock is undervalued.

Insider Transactions at Calix

In related news, insider Shane Todd Marshall Eleniak sold 50,000 shares of the firm’s stock in a transaction that occurred on Tuesday, November 4th. The shares were sold at an average price of $65.34, for a total transaction of $3,267,000.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Carl Russo sold 420,000 shares of Calix stock in a transaction on Tuesday, November 4th. The shares were sold at an average price of $64.09, for a total transaction of $26,917,800.00. Following the sale, the director directly owned 1,694,188 shares of the company’s stock, valued at $108,580,508.92. This trade represents a 19.87% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 520,000 shares of company stock valued at $33,449,800 over the last three months. 16.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Calix

Several hedge funds have recently modified their holdings of CALX. Clearstead Advisors LLC grew its position in Calix by 139.3% in the 3rd quarter. Clearstead Advisors LLC now owns 438 shares of the communications equipment provider’s stock worth $27,000 after purchasing an additional 255 shares during the last quarter. SouthState Corp increased its stake in Calix by 10,000.0% during the second quarter. SouthState Corp now owns 505 shares of the communications equipment provider’s stock valued at $27,000 after acquiring an additional 500 shares during the period. Farther Finance Advisors LLC raised its holdings in Calix by 63.0% in the 4th quarter. Farther Finance Advisors LLC now owns 551 shares of the communications equipment provider’s stock valued at $29,000 after acquiring an additional 213 shares in the last quarter. Raymond James Financial Inc. bought a new stake in shares of Calix in the 2nd quarter worth approximately $30,000. Finally, Whittier Trust Co. grew its holdings in shares of Calix by 541.0% during the 3rd quarter. Whittier Trust Co. now owns 641 shares of the communications equipment provider’s stock worth $38,000 after purchasing an additional 541 shares in the last quarter. 98.14% of the stock is owned by institutional investors.

Calix Company Profile

Calix, Inc is a provider of cloud and software platforms, systems, and services that enable broadband service providers to transform their networks and subscriber experiences. The company’s flagship Calix Cloud platform delivers real-time analytics, automation and intelligence designed to simplify network operations, improve service agility and drive revenue growth. Calix also offers a comprehensive suite of premises and access systems, including broadband access nodes, fiber-to-the-home optics and residential gateways under the GigaSpire brand.

Through its software-defined network architecture, Calix helps service providers virtualize key network functions and introduce new services with minimal capital expenditure.