Calix, Inc (NYSE:CALX) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Calix has a consensus “Moderate Buy” rating from 10 analysts, with six buy ratings and four hold ratings. The average 1-year price target is $67, well above the stock’s recent price around $38.54.
• The company recently beat earnings estimates, reporting $0.40 EPS versus $0.37 expected, while revenue rose 27.2% year over year to $279.98 million. Calix also issued Q2 guidance of $0.35 to $0.45 EPS.
• Calix’s board approved a $100 million share buyback authorizing repurchases of up to 3% of outstanding shares. The stock has also drawn some caution from a pending securities class action, which could add legal and reputational pressure.

Calix, Inc (NYSE:CALX - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the ten analysts that are currently covering the firm, Marketbeat reports. Four research analysts have rated the stock with a hold recommendation and six have assigned a buy recommendation to the company. The average 1-year target price among analysts that have issued ratings on the stock in the last year is $67.00.

A number of research firms recently commented on CALX. Needham & Company LLC decreased their target price on shares of Calix from $70.00 to $62.00 and set a "buy" rating for the company in a research report on Thursday, April 23rd. Zacks Research raised shares of Calix from a "strong sell" rating to a "hold" rating in a report on Friday, May 15th. Wall Street Zen raised shares of Calix from a "buy" rating to a "strong-buy" rating in a report on Saturday, June 6th. Weiss Ratings raised shares of Calix from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, June 5th. Finally, Rosenblatt Securities reaffirmed a "buy" rating and issued a $70.00 price target on shares of Calix in a report on Wednesday.

Calix Stock Down 0.1%

NYSE:CALX opened at $38.54 on Friday. Calix has a 52 week low of $35.87 and a 52 week high of $71.22. The firm has a 50 day moving average of $43.09 and a 200 day moving average of $49.65. The stock has a market capitalization of $2.46 billion, a price-to-earnings ratio of 80.30 and a beta of 1.23.

Calix (NYSE:CALX - Get Free Report) last posted its earnings results on Tuesday, April 21st. The communications equipment provider reported $0.40 EPS for the quarter, beating analysts' consensus estimates of $0.37 by $0.03. Calix had a net margin of 3.20% and a return on equity of 4.30%. The company had revenue of $279.98 million during the quarter, compared to analysts' expectations of $277.50 million. During the same quarter in the prior year, the company posted $0.19 earnings per share. Calix's revenue for the quarter was up 27.2% compared to the same quarter last year. Calix has set its Q2 2026 guidance at 0.350-0.450 EPS. As a group, analysts expect that Calix will post 0.85 EPS for the current year.

Calix declared that its board has initiated a share buyback program on Tuesday, April 21st that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the communications equipment provider to buy up to 3% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's management believes its stock is undervalued.

Calix News Roundup

Here are the key news stories impacting Calix this week:

• Positive Sentiment: Rosenblatt Securities reaffirmed a Buy rating on Calix and set a $70 price target, implying meaningful upside from current levels. Benzinga article
• Neutral Sentiment: Several law firms, including Rosen, Faruqi & Faruqi, Bernstein Liebhard, Portnoy, Pomerantz, Schall, Levi & Korsinsky, DJS, and Robbins, issued investor notices reminding shareholders about the pending securities class action and the July 27 deadline to seek lead-plaintiff status.
• Negative Sentiment: The class-action filings allege Calix misled investors about margin improvement and memory-component costs, creating a legal and reputational overhang that could increase volatility and distract management.

Insider Buying and Selling at Calix

In other news, Director Carl Russo sold 25,000 shares of the stock in a transaction on Monday, April 27th. The shares were sold at an average price of $43.26, for a total value of $1,081,500.00. Following the sale, the director owned 1,644,188 shares in the company, valued at $71,127,572.88. This represents a 1.50% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 17.44% of the stock is owned by insiders.

Institutional Trading of Calix

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. State Street Corp grew its position in Calix by 1.0% during the fourth quarter. State Street Corp now owns 2,362,965 shares of the communications equipment provider's stock valued at $125,072,000 after buying an additional 23,022 shares during the period. Geode Capital Management LLC grew its position in Calix by 5.4% during the fourth quarter. Geode Capital Management LLC now owns 1,445,338 shares of the communications equipment provider's stock valued at $76,513,000 after buying an additional 74,235 shares during the period. Alliancebernstein L.P. grew its position in Calix by 4.5% during the third quarter. Alliancebernstein L.P. now owns 1,409,729 shares of the communications equipment provider's stock valued at $86,515,000 after buying an additional 61,247 shares during the period. Arrowstreet Capital Limited Partnership grew its position in Calix by 214.3% during 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 buying an additional 868,987 shares during the period. Finally, Dimensional Fund Advisors LP grew its position in Calix by 28.4% during the first quarter. Dimensional Fund Advisors LP now owns 1,218,495 shares of the communications equipment provider's stock valued at $59,699,000 after buying an additional 269,876 shares during the period. Institutional investors and hedge funds own 98.14% of the company's stock.

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.

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