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

Key Points

• Zacks Research downgraded Calix from a "strong-buy" to a "hold," while analyst opinions remain mixed overall with a consensus rating of Moderate Buy and a $77.50 average target price.
• Calix slightly beat quarterly estimates with $0.39 EPS vs. $0.38 expected and $272.4M revenue vs. $267.36M, with revenue up 32.2% year‑over‑year and Q1 2026 guidance of $0.340–0.400 EPS (analysts project -$0.43 for the fiscal year).
• The board authorized a $125 million share buyback (about 3.4% of shares); the stock opened at $50.96, trading within a 52‑week range of $29.50–$71.22 and a market cap of roughly $3.34 billion.

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

Several other research analysts have also recently commented on CALX. Wall Street Zen cut Calix from a "strong-buy" rating to a "buy" rating in a research note on Saturday, February 7th. Craig Hallum set a $60.00 price objective on Calix in a research note on Friday, January 30th. JPMorgan Chase & Co. raised Calix from a "neutral" rating to an "overweight" rating and boosted their price objective for the stock from $75.00 to $90.00 in a research report on Thursday, January 15th. Needham & Company LLC cut their target price on shares of Calix from $82.00 to $70.00 and set a "buy" rating on the stock in a research note on Thursday, January 29th. Finally, Weiss Ratings raised shares of Calix from a "sell (d-)" rating to a "hold (c-)" rating in a report on Monday, February 23rd. Six research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, Calix has an average rating of "Moderate Buy" and a consensus target price of $77.50.

Calix Stock Down 1.0%

Calix stock opened at $50.96 on Monday. Calix has a 52-week low of $29.50 and a 52-week high of $71.22. The firm has a market cap of $3.34 billion, a PE ratio of 203.83 and a beta of 1.49. The company's 50 day moving average is $52.77 and its two-hundred day moving average is $56.64.

Calix (NYSE:CALX - Get Free Report) last posted its quarterly earnings results on Wednesday, January 28th. The communications equipment provider reported $0.39 EPS for the quarter, topping the consensus estimate of $0.38 by $0.01. The business had revenue of $272.40 million during the quarter, compared to the consensus estimate of $267.36 million. Calix had a net margin of 1.79% and a return on equity of 2.31%. The company's quarterly revenue was up 32.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.08 earnings per share. Calix has set its Q1 2026 guidance at 0.340-0.400 EPS. On average, equities research analysts anticipate that Calix will post -0.43 earnings per share for the current fiscal year.

Calix announced that its board has authorized a share buyback plan on Wednesday, January 28th that allows the company to repurchase $125.00 million in outstanding shares. This repurchase authorization allows the communications equipment provider to purchase up to 3.4% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Royal Bank of Canada raised its position in shares of Calix by 11.0% during the 1st quarter. Royal Bank of Canada now owns 28,022 shares of the communications equipment provider's stock worth $993,000 after acquiring an additional 2,773 shares in the last quarter. AQR Capital Management LLC boosted its holdings in Calix by 304.1% in the first quarter. AQR Capital Management LLC now owns 44,874 shares of the communications equipment provider's stock valued at $1,538,000 after purchasing an additional 33,769 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Calix by 10.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 176,328 shares of the communications equipment provider's stock valued at $6,249,000 after purchasing an additional 16,905 shares during the last quarter. Intech Investment Management LLC raised its holdings in Calix by 26.8% during the first quarter. Intech Investment Management LLC now owns 32,923 shares of the communications equipment provider's stock worth $1,167,000 after purchasing an additional 6,962 shares in the last quarter. Finally, PNC Financial Services Group Inc. raised its holdings in Calix by 40.9% during the second quarter. PNC Financial Services Group Inc. now owns 2,895 shares of the communications equipment provider's stock worth $154,000 after purchasing an additional 841 shares in the last quarter. Hedge funds and other institutional investors 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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