Wall Street Zen Upgrades Calix (NYSE:CALX) to Strong-Buy

Key Points

• Wall Street Zen upgraded Calix from buy to strong-buy, adding to a mixed but generally positive analyst backdrop. MarketBeat notes the stock still has an average rating of Moderate Buy with a consensus target price of $67.00.
• Calix reported better-than-expected Q1 results, with earnings of $0.40 per share on revenue of $279.98 million, both ahead of estimates. Revenue rose 27.2% year over year, and the company guided Q2 2026 EPS to $0.35-$0.45.
• The company also authorized a $100 million share buyback, which could signal management believes the stock is undervalued. However, the shares are trading near their 52-week low, and the article highlights ongoing securities fraud class action headlines as a legal overhang.

Calix (NYSE:CALX - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research report issued on Saturday.

A number of other research analysts have also commented on the stock. Zacks Research raised shares of Calix from a "strong sell" rating to a "hold" rating in a research report on Friday, May 15th. Weiss Ratings lowered shares of Calix from a "hold (c)" rating to a "hold (c-)" rating in a research report on Wednesday, May 20th. Needham & Company LLC dropped their price target 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. Roth Mkm reissued a "buy" rating on shares of Calix in a research report on Thursday, April 23rd. Finally, Northland Securities lowered shares of Calix from an "outperform" rating to a "market perform" rating and set a $52.00 price target for the company. in a research report on Wednesday, April 22nd. Six analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $67.00.

Calix Price Performance

CALX stock opened at $36.93 on Friday. Calix has a 52-week low of $36.83 and a 52-week high of $71.22. The company has a 50-day moving average of $44.02 and a two-hundred day moving average of $50.15. The stock has a market capitalization of $2.36 billion, a price-to-earnings ratio of 76.94 and a beta of 1.23.

Calix (NYSE:CALX - Get Free Report) last announced its quarterly earnings data 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. The business had revenue of $279.98 million during the quarter, compared to analyst estimates of $277.50 million. Calix had a net margin of 3.20% and a return on equity of 4.30%. The firm's revenue for the quarter was up 27.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.19 earnings per share. Calix has set its Q2 2026 guidance at 0.350-0.450 EPS. Equities analysts expect that Calix will post 0.85 EPS for the current fiscal year.

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

Insider Buying and Selling at Calix

In other news, Director Carl Russo sold 25,000 shares of the firm's stock in a transaction that occurred on Monday, April 27th. The shares were 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 filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 17.44% of the company's stock.

Institutional Trading of Calix

Hedge funds have recently modified their holdings of the company. GSA Capital Partners LLP boosted its stake in Calix by 167.0% in the fourth quarter. GSA Capital Partners LLP now owns 53,867 shares of the communications equipment provider's stock valued at $2,851,000 after acquiring an additional 33,691 shares during the last quarter. Tudor Investment Corp ET AL boosted its stake in Calix by 38.1% in the third quarter. Tudor Investment Corp ET AL now owns 290,189 shares of the communications equipment provider's stock valued at $17,809,000 after acquiring an additional 80,029 shares during the last quarter. Atika Capital Management LLC bought a new position in Calix in the third quarter valued at approximately $5,493,000. Divisadero Street Capital Management LP boosted its stake in Calix by 756.0% in the third quarter. Divisadero Street Capital Management LP now owns 453,873 shares of the communications equipment provider's stock valued at $27,854,000 after acquiring an additional 400,851 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. boosted its stake in Calix by 397,798.9% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 350,151 shares of the communications equipment provider's stock valued at $18,533,000 after acquiring an additional 350,063 shares during the last quarter. Institutional investors and hedge funds own 98.14% of the company's stock.

Key Calix News

Here are the key news stories impacting Calix this week:

• Negative Sentiment: Multiple law firms, including Rosen, Schall, DJS, Pomerantz, Kirby McInerney, and others, announced or reminded investors about a securities fraud class action against Calix, adding legal overhang and potential settlement risk. Article Title
• Negative Sentiment: One alert specifically cited allegations that Calix’s “record margins were propped up” by a dwindling supply of pre-purchased memory components, which could increase concern about the quality of prior earnings results. Article Title
• Neutral Sentiment: The lawsuits center on allegations of violations of federal securities laws, with a lead-plaintiff deadline around July 27, 2026; these notices are procedural but keep the issue in the spotlight for investors. Article Title

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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