Calix (NYSE:CALX) Cut to "Hold" at Zacks Research

Key Points

• Calix has been downgraded from a "strong-buy" to a "hold" rating by Zacks Research, signaling a potential shift in investor sentiment.
• Despite the downgrade, several analysts have raised their target prices for Calix, with current average expectations now at $64.00, indicating a consensus rating of "Moderate Buy".
• Insiders have recently sold a significant number of shares, with directors and executives offloading a combined total of 55,000 shares valued at over $3 million in the last three months.

Calix (NYSE:CALX - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Monday,Zacks.com reports.

A number of other research analysts have also recently commented on CALX. Roth Capital boosted their target price on shares of Calix from $60.00 to $69.00 and gave the stock a "buy" rating in a research report on Monday, September 15th. JPMorgan Chase & Co. upped their price objective on shares of Calix from $38.00 to $52.00 and gave the company a "neutral" rating in a research report on Thursday, July 17th. Rosenblatt Securities lifted their target price on Calix from $56.00 to $65.00 and gave the stock a "buy" rating in a research report on Tuesday, July 22nd. Needham & Company LLC increased their price target on Calix from $60.00 to $70.00 and gave the company a "buy" rating in a report on Tuesday, July 22nd. Finally, Wolfe Research assumed coverage on Calix in a report on Monday, July 7th. They set a "peer perform" rating on the stock. Four investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $64.00.

Calix Price Performance

Shares of NYSE CALX opened at $62.46 on Monday. Calix has a 1-year low of $28.60 and a 1-year high of $64.30. The company has a market capitalization of $4.08 billion, a price-to-earnings ratio of -156.15 and a beta of 1.35. The business has a 50-day moving average of $58.40 and a 200-day moving average of $47.83.

Calix (NYSE:CALX - Get Free Report) last released its quarterly earnings results on Monday, July 21st. The communications equipment provider reported $0.33 EPS for the quarter, topping the consensus estimate of ($0.08) by $0.41. The firm had revenue of $241.90 million for the quarter, compared to analyst estimates of $223.81 million. Calix had a negative return on equity of 3.21% and a negative net margin of 3.09%.Calix's revenue for the quarter was up 22.1% on a year-over-year basis. During the same period in the previous year, the company posted $0.09 EPS. Calix has set its Q3 2025 guidance at 0.310-0.371 EPS. Research analysts expect that Calix will post -0.43 EPS for the current fiscal year.

Insider Activity

In other Calix news, Director Carl Russo sold 25,000 shares of the company's stock in a transaction that occurred on Monday, July 28th. The stock was sold at an average price of $55.40, for a total transaction of $1,385,000.00. Following the sale, the director owned 2,114,188 shares in the company, valued at $117,126,015.20. This represents a 1.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CFO Cory Sindelar sold 10,000 shares of the stock in a transaction that occurred on Thursday, August 28th. The stock was sold at an average price of $60.00, for a total value of $600,000.00. Following the transaction, the chief financial officer directly owned 76,555 shares in the company, valued at approximately $4,593,300. This represents a 11.55% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 55,000 shares of company stock valued at $3,065,000. 16.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Calix

A number of hedge funds have recently added to or reduced their stakes in CALX. Two Sigma Investments LP lifted its position in shares of Calix by 31.0% in the 4th quarter. Two Sigma Investments LP now owns 29,994 shares of the communications equipment provider's stock worth $1,046,000 after buying an additional 7,100 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in Calix by 23.0% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 159,423 shares of the communications equipment provider's stock worth $5,559,000 after acquiring an additional 29,815 shares during the period. Mackenzie Financial Corp lifted its holdings in Calix by 159.3% in the fourth quarter. Mackenzie Financial Corp now owns 23,710 shares of the communications equipment provider's stock worth $827,000 after acquiring an additional 14,567 shares during the last quarter. Wellington Management Group LLP grew its holdings in shares of Calix by 0.6% during the fourth quarter. Wellington Management Group LLP now owns 202,274 shares of the communications equipment provider's stock valued at $7,053,000 after purchasing an additional 1,135 shares during the last quarter. Finally, Kera Capital Partners Inc. acquired a new stake in shares of Calix during the 1st quarter worth approximately $261,000. Institutional investors and hedge funds own 98.14% of the company's stock.

About Calix

Calix, Inc, together with its subsidiaries, engages in the provision of cloud and software platforms, and systems and services in the United States, rest of Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its cloud and software platforms, and systems and services enable broadband service providers (BSPs) to provide a range of services.

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