Calix (NYSE:CALX) Reaches New 1-Year Low on Analyst Downgrade

Calix, Inc (NYSE:CALX)’s stock price reached a new 52-week low during mid-day trading on Tuesday after Rosenblatt Securities lowered their price target on the stock from $70.00 to $55.00. Rosenblatt Securities currently has a buy rating on the stock. Calix traded as low as $34.29 and last traded at $34.7840, with a volume of 667093 shares changing hands. The stock had previously closed at $38.35.

Other research analysts have also issued research reports about the stock. Wall Street Zen lowered shares of Calix from a “strong-buy” rating to a “buy” rating in a research report on Saturday. Roth Capital reaffirmed a “buy” rating on shares of Calix in a research report on Thursday, April 23rd. Zacks Research upgraded Calix from a “strong sell” rating to a “hold” rating in a research note on Friday, May 15th. JPMorgan Chase & Co. cut their price objective on Calix from $70.00 to $65.00 and set an “overweight” rating for the company in a research report on Wednesday, April 22nd. Finally, Needham & Company LLC decreased their target price on Calix from $70.00 to $62.00 and set a “buy” rating for the company in a research note on Thursday, April 23rd. Six research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $64.86.

Insider Activity at Calix

In related news, Director Carl Russo sold 25,000 shares of the firm’s stock in a transaction on Monday, April 27th. The stock was sold at an average price of $43.26, for a total value of $1,081,500.00. Following the completion of the transaction, the director directly 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 17.44% of the company’s stock.

Key Stories Impacting Calix

Here are the key news stories impacting Calix this week:

• Positive Sentiment: Calix reported Q2 EPS of $0.47, topping consensus estimates of $0.40, while revenue came in at $293.33 million versus expectations of $289.96 million. Revenue rose 21.3% year over year, which should help investor confidence in the company’s growth trend. Article Title
• Positive Sentiment: Rosenblatt Securities kept a buy rating on Calix while trimming its price target from $70 to $55, implying meaningful upside from recent levels despite the lower target. Article Title
• Neutral Sentiment: Management also issued Q3 EPS guidance of $0.37 to $0.45 and revenue guidance of $301 million to $307 million, which appears close to consensus and suggests steady but not dramatic near-term acceleration.
• Negative Sentiment: Multiple law firms renewed reminders about the July 27 deadline in the pending securities class-action lawsuit against Calix, which may keep legal overhang in focus for investors. Article Title

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Fuller & Thaler Asset Management Inc. bought a new stake in Calix during the fourth quarter worth about $57,915,000. Arrowstreet Capital Limited Partnership raised its stake in shares of Calix by 214.3% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,274,426 shares of the communications equipment provider’s stock valued at $78,212,000 after acquiring an additional 868,987 shares during the last quarter. Westfield Capital Management Co. LP raised its stake in shares of Calix by 67.4% in the fourth quarter. Westfield Capital Management Co. LP now owns 1,145,292 shares of the communications equipment provider’s stock valued at $60,620,000 after acquiring an additional 461,196 shares during the last quarter. Alyeska Investment Group L.P. acquired a new position in shares of Calix in the 4th quarter worth approximately $19,856,000. Finally, Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Calix by 397,798.9% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 350,151 shares of the communications equipment provider’s stock worth $18,533,000 after acquiring an additional 350,063 shares in the last quarter. Institutional investors and hedge funds own 98.14% of the company’s stock.

Calix Stock Performance

The firm has a market capitalization of $2.29 billion, a P/E ratio of 74.69 and a beta of 1.23. The stock has a 50-day moving average of $38.62 and a 200 day moving average of $46.48.

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

Calix declared that its board has initiated a share buyback plan on Tuesday, April 21st that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the communications equipment provider to purchase up to 3% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s leadership believes its stock is undervalued.

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.