Calix (NYSE:CALX) Cut to “Buy” at Wall Street Zen

Wall Street Zen lowered shares of Calix (NYSE:CALX) from a strong-buy rating to a buy rating in a research report sent to investors on Saturday morning.

Several other equities analysts have also issued reports on the company. Rosenblatt Securities reiterated a “buy” rating and issued a $70.00 price target on shares of Calix in a research note on Wednesday, June 10th. Zacks Research raised shares of Calix from a “strong sell” rating to a “hold” rating in a research note on Friday, May 15th. Needham & Company LLC cut their price objective on Calix from $70.00 to $62.00 and set a “buy” rating on the stock in a report on Thursday, April 23rd. Roth Capital restated a “buy” rating on shares of Calix in a research report on Thursday, April 23rd. Finally, JPMorgan Chase & Co. lowered their target price on Calix from $70.00 to $65.00 and set an “overweight” rating for the company in a report on Wednesday, April 22nd. Six equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $67.00.

Calix Price Performance

Calix stock opened at $38.38 on Friday. The firm has a market cap of $2.45 billion, a PE ratio of 79.96 and a beta of 1.23. The stock’s fifty day moving average price is $38.62 and its two-hundred day moving average price is $46.48. Calix has a one year low of $34.86 and a one year high of $71.22.

Calix (NYSE:CALX) last released its earnings results on Monday, July 20th. The communications equipment provider reported $0.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.40 by $0.07. Calix had a return on equity of 4.30% and a net margin of 3.20%.The company had revenue of $293.33 million for the quarter, compared to analyst estimates of $289.96 million. During the same period in the prior year, the firm posted $0.33 EPS. Calix’s quarterly revenue was up 21.3% on a year-over-year basis. Calix has set its Q3 2026 guidance at 0.370-0.450 EPS. Sell-side analysts expect that Calix will post 0.83 earnings per share for the current fiscal year.

Calix announced that its Board of Directors has approved a share buyback plan on Tuesday, April 21st that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the communications equipment provider to buy up to 3% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its stock is undervalued.

Insider Activity

In related news, Director Carl Russo sold 25,000 shares of the firm’s stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $43.26, for a total transaction of $1,081,500.00. Following the completion of the sale, the director owned 1,644,188 shares of the company’s stock, valued at $71,127,572.88. This trade represents a 1.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 17.44% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. LVW Advisors LLC lifted its holdings in Calix by 2.0% during the 4th quarter. LVW Advisors LLC now owns 9,655 shares of the communications equipment provider’s stock worth $511,000 after purchasing an additional 188 shares in the last quarter. Farther Finance Advisors LLC grew its stake in Calix by 63.0% during the fourth 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. Smartleaf Asset Management LLC lifted its stake in Calix by 27.0% in the 2nd quarter. Smartleaf Asset Management LLC now owns 1,245 shares of the communications equipment provider’s stock worth $64,000 after purchasing an additional 265 shares in the last quarter. Maryland State Retirement & Pension System boosted its stake in Calix by 3.2% during the fourth quarter. Maryland State Retirement & Pension System now owns 8,813 shares of the communications equipment provider’s stock valued at $466,000 after buying an additional 270 shares during the period. Finally, Vident Advisory LLC grew its holdings in shares of Calix by 2.8% during the fourth quarter. Vident Advisory LLC now owns 10,570 shares of the communications equipment provider’s stock worth $559,000 after purchasing an additional 287 shares in the last quarter. Institutional investors and hedge funds own 98.14% of the company’s stock.

Key Stories Impacting Calix

Here are the key news stories impacting Calix this week:

• Positive Sentiment: Calix reported second-quarter earnings of $0.47 per share, ahead of the $0.40 consensus estimate, and revenue of $293.33 million versus expectations of $289.96 million, signaling an operational beat that could support the stock. Article Title
• Positive Sentiment: The company also posted improved year-over-year profitability, with EPS up from $0.33 a year ago, which may reinforce the view that Calix is executing better than in the prior period. Article Title
• Neutral Sentiment: Calix issued third-quarter EPS guidance of $0.37 to $0.45 and revenue guidance of $301 million to $307 million, which was broadly in line with expectations but not meaningfully above them, limiting the upside from the earnings beat. Article Title
• Negative Sentiment: Multiple law firms issued reminders about a securities class action involving Calix and a July 27 lead-plaintiff deadline, keeping litigation risk in focus and potentially weighing on sentiment. Article Title
• Negative Sentiment: Additional lawsuit-related alerts from Schall, DJS, Rosen, and others suggest the legal overhang remains active, which may be contributing to the stock’s weakness today. Article Title

About Calix

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.