Calix (NYSE:CALX) Reaches New 12-Month Low Following Analyst Downgrade

Key Points

• Calix hit a new 52-week low after Rosenblatt Securities cut its price target from $70 to $55, even while keeping a buy rating. The stock traded as low as $34.29, well below its prior close of $38.35.
• Recent earnings topped expectations, with Q2 EPS of $0.47 versus $0.40 expected and revenue of $293.33 million versus $289.96 million projected. Revenue also rose 21.3% year over year.
• Analyst sentiment remains mixed but constructive, with the consensus rating at “Moderate Buy” and an average price target of $64.86. The company also announced Q3 guidance of $0.37 to $0.45 EPS and $301 million to $307 million in revenue.

Calix, Inc (NYSE:CALX - Get Free Report) hit a new 52-week low 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.

CALX has been the topic of a number of other research reports. Roth Capital restated a "buy" rating on shares of Calix in a report on Thursday, April 23rd. Zacks Research upgraded shares of Calix from a "strong sell" rating to a "hold" rating in a research report on Friday, May 15th. JPMorgan Chase & Co. cut their target price on shares of Calix from $70.00 to $65.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 22nd. Weiss Ratings cut Calix from a "hold (c)" rating to a "hold (c-)" rating in a research report on Thursday, July 2nd. Finally, Needham & Company LLC lowered their price target on Calix from $70.00 to $62.00 and set a "buy" rating on the stock in a report on Thursday, April 23rd. Six equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $64.86.

Insider Activity

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

Key Headlines 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 Investors Weigh In On Calix

Several institutional investors have recently made changes to their positions in the company. Farther Finance Advisors LLC raised its position in Calix by 63.0% during the fourth quarter. Farther Finance Advisors LLC now owns 551 shares of the communications equipment provider's stock valued at $29,000 after acquiring an additional 213 shares in the last quarter. Raymond James Financial Inc. acquired a new position in shares of Calix during the 2nd quarter worth $30,000. Caitong International Asset Management Co. Ltd increased its stake in shares of Calix by 24,733.3% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 745 shares of the communications equipment provider's stock worth $39,000 after purchasing an additional 742 shares during the last quarter. Strive Financial Group LLC bought a new position in shares of Calix during the 4th quarter valued at $40,000. Finally, Harbor Investment Advisory LLC bought a new position in shares of Calix during the 2nd quarter valued at $31,000. 98.14% of the stock is currently owned by institutional investors and hedge funds.

Calix Stock Performance

The firm has a market cap of $2.29 billion, a price-to-earnings ratio of 74.69 and a beta of 1.23. The firm's 50 day moving average is $38.62 and its 200-day moving average is $46.48.

Calix (NYSE:CALX - Get Free Report) last posted its earnings results on Monday, July 20th. The communications equipment provider reported $0.47 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.07. Calix had a return on equity of 4.30% and a net margin of 3.20%.The company had revenue of $293.33 million for the quarter, compared to analyst estimates of $289.96 million. During the same period last year, the company earned $0.33 earnings per share. The business's revenue was up 21.3% compared to the same quarter last year. Calix has set its Q3 2026 guidance at 0.370-0.450 EPS. As a group, research analysts predict that Calix, Inc will post 0.83 EPS for the current year.

Calix declared that its Board of Directors has authorized a share buyback plan on Tuesday, April 21st that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the communications equipment provider to purchase up to 3% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board believes its shares are 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.

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