Calix (NYSE:CALX) Lowered to “Strong Sell” Rating by Zacks Research

Zacks Research downgraded shares of Calix (NYSE:CALX) from a hold rating to a strong sell rating in a research report released on Monday,Zacks.com reports.

CALX has been the topic of several other reports. Northland Securities upgraded Calix from a “market perform” rating to an “outperform” rating and set a $52.00 target price on the stock in a research note on Tuesday. Weiss Ratings cut Calix from a “hold (c)” rating to a “hold (c-)” rating in a research note on Thursday, July 2nd. Rosenblatt Securities lowered their price target on Calix from $70.00 to $55.00 and set a “buy” rating on the stock in a report on Tuesday. Needham & Company LLC dropped their price objective on Calix from $70.00 to $62.00 and set a “buy” rating on the stock in a research report on Thursday, April 23rd. Finally, JPMorgan Chase & Co. decreased their target price on Calix from $70.00 to $65.00 and set an “overweight” rating for the company in a research report on Wednesday, April 22nd. Seven investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Calix currently has an average rating of “Moderate Buy” and a consensus price target of $64.86.

Calix Stock Down 2.5%

NYSE:CALX opened at $37.38 on Monday. The company’s 50 day moving average price is $38.54 and its 200-day moving average price is $46.37. Calix has a 52 week low of $34.26 and a 52 week high of $71.22. The stock has a market cap of $2.38 billion, a price-to-earnings ratio of 50.51 and a beta of 1.23.

Calix (NYSE:CALX) last announced its quarterly 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 net margin of 4.61% and a return on equity of 5.99%. The company had revenue of $293.33 million during the quarter, compared to the consensus estimate of $289.96 million. During the same quarter last year, the firm earned $0.33 earnings per share. The firm’s quarterly 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, sell-side analysts anticipate that Calix will post 0.83 earnings per share for the current year.

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

Insider Activity

In other news, Director Carl Russo sold 25,000 shares of the firm’s stock in a transaction on Monday, April 27th. The stock was sold at an average price of $43.26, for a total value of $1,081,500.00. Following the transaction, the director directly owned 1,644,188 shares in the company, valued at $71,127,572.88. This trade represents a 1.50% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 17.44% of the stock is currently owned by company insiders.

Institutional Trading of Calix

Hedge funds have recently bought and sold shares of the company. 4D Advisors LLC purchased a new stake in shares of Calix during the 4th quarter valued at about $6,087,000. GSA Capital Partners LLP lifted its stake in shares of Calix by 167.0% in the 4th quarter. GSA Capital Partners LLP now owns 53,867 shares of the communications equipment provider’s stock worth $2,851,000 after purchasing an additional 33,691 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Calix by 5.4% in the fourth quarter. Geode Capital Management LLC now owns 1,445,338 shares of the communications equipment provider’s stock worth $76,513,000 after buying an additional 74,235 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of 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 worth $18,533,000 after buying an additional 350,063 shares during the last quarter. Finally, Intech Investment Management LLC grew its position in Calix by 129.7% during the fourth quarter. Intech Investment Management LLC now owns 101,074 shares of the communications equipment provider’s stock valued at $5,350,000 after buying an additional 57,065 shares during the period. Hedge funds and other institutional investors own 98.14% of the company’s stock.

Key Stories Impacting Calix

Here are the key news stories impacting Calix this week:

• Positive Sentiment: Calix beat Q2 expectations, reporting EPS of $0.47 versus $0.40 expected and revenue of $293.3 million versus $290.0 million expected, with sales up 21.3% year over year. Calix Releases Second Quarter 2026 Financial Results
• Positive Sentiment: The company’s AI broadband strategy and growing recurring software/services mix are being viewed as long-term positives, and Northland Securities upgraded CALX to outperform with a $52 target. Northland upgrade and target update
• Neutral Sentiment: Analysts and commentary highlighted that Calix is expanding beyond hardware into AI-native broadband software and recurring services, but execution remains a key watch item. Calix AI Broadband Strategy Shows Where Fiber Networks Are Heading
• Negative Sentiment: Third-quarter guidance pointed to gross margin pressure as AI-driven memory costs rise, with Calix warning that component costs are squeezing appliance margins and only partly being offset by surcharges. Calix shares fall 7% after Q2 beat as AI-driven memory costs squeeze margins
• Negative Sentiment: Multiple class-action lawsuit reminders and a July 27 lead-plaintiff deadline add legal uncertainty and can weigh on sentiment. Investor Alert Pomerantz Law Firm

Calix Company Profile

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.