Calix (NYSE:CALX) Stock Gets Downgrade from Wall Street Zen

Key Points

• Wall Street Zen downgraded Calix from “Strong Buy” to “Buy.”
• Analyst sentiment remains broadly positive: five analysts rate the stock Buy and two Hold, for a “Moderate Buy” consensus and an average price target of $55.80.
• Calix beat quarterly EPS estimates ($0.44 versus $0.42) and revenue grew 13.7% year over year, though revenue fell short of analysts’ expectations.

Calix (NYSE:CALX - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Sunday, Wall Street Zen reports.

Other equities analysts have also recently issued research reports about the company. Rosenblatt Securities restated a "buy" rating and set a $55.00 target price on shares of Calix in a report on Wednesday. Northland Securities raised shares of Calix from a "market perform" rating to an "outperform" rating and set a $52.00 price objective on the stock in a research note on Tuesday, July 21st. Zacks Research raised shares of Calix from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 18th. JPMorgan Chase & Co. decreased their price objective on shares of Calix from $58.00 to $50.00 and set an "overweight" rating for the company in a report on Wednesday. Finally, Weiss Ratings downgraded shares of Calix from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday, October 26th. Five equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, Calix presently has an average rating of "Moderate Buy" and an average target price of $55.80.

Calix Stock Performance

Calix stock opened at $30.58 on Friday. The company has a 50 day moving average price of $35.60 and a 200 day moving average price of $42.07. The firm has a market capitalization of $1.89 billion, a price-to-earnings ratio of 44.97 and a beta of 1.21. Calix has a 52 week low of $30.55 and a 52 week high of $65.00.

Calix (NYSE:CALX - Get Free Report) last posted its quarterly earnings results on Monday, November 2nd. The communications equipment provider reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.42 by $0.02. Calix had a return on equity of 5.67% and a net margin of 3.99%. The business had revenue of $301.71 million for the quarter, compared to analyst estimates of $304.23 million. During the same period last year, the company earned $0.44 EPS. The firm's revenue was up 13.7% on a year-over-year basis. Equities analysts forecast that Calix will post 0.85 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. California State Teachers Retirement System grew its holdings in shares of Calix by 32.6% in the 1st quarter. California State Teachers Retirement System now owns 76,344 shares of the communications equipment provider's stock valued at $3,740,000 after acquiring an additional 18,755 shares in the last quarter. Bank of America Corp DE raised its holdings in Calix by 63.3% during the first quarter. Bank of America Corp DE now owns 750,117 shares of the communications equipment provider's stock worth $36,748,000 after acquiring an additional 290,661 shares in the last quarter. Fort Washington Investment Advisors Inc. OH bought a new stake in Calix during the third quarter worth about $32,090,000. The Manufacturers Life Insurance Company bought a new stake in Calix during the second quarter worth about $1,080,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in Calix during the second quarter valued at approximately $1,641,000. 98.14% of the stock is currently owned by institutional investors.

Key Calix News

Here are the key news stories impacting Calix this week:

• Positive Sentiment: Northland Securities reiterated an Outperform rating and a $52 price target, estimating 2027 quarterly EPS of $0.33, $0.40, $0.47 and $0.48. The forecasts point to improving earnings through the year and provide a positive analyst signal. Northland Securities estimates and rating
• Positive Sentiment: A report highlights record revenue and Calix’s AI push as potential growth drivers, supporting the longer-term opportunity. Record Revenue And AI Push Could Be A Game Changer For Calix
• Positive Sentiment: Rosenblatt Securities reportedly maintained its Buy rating, indicating continued analyst support. Calix Stock Keeps Buy Rating at Rosenblatt Securities
• Negative Sentiment: JPMorgan issued a forecast described as pessimistic, adding a cautious analyst view. The available report does not specify the price target or reasoning. JPMorgan Issues Pessimistic Forecast for Calix
• Negative Sentiment: Calix disclosed rising FCC regulatory risks that could constrain router approvals and post-2029 firmware updates, potentially affecting product availability or support. Calix Faces Rising FCC Regulatory Risks

About Calix

Calix, Inc provides cloud, software and broadband access solutions to communications service providers. Its technology helps broadband operators deploy, manage and monetize high-speed internet and related services for residential and business customers.

The company's offerings include broadband access systems, subscriber premise equipment, cloud-based software and analytics, and managed services. Its portfolio supports fiber, fixed wireless and other broadband networks, while enabling providers to deliver services such as Wi-Fi management, network security, connected home applications and business connectivity.

Founded in 1999 and headquartered in San Jose, California, Calix serves broadband service providers primarily in North America, with customers and operations in other international markets.

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