Calix (NYSE:CALX) Shares Gap Down – Here’s Why

Calix, Inc (NYSE:CALX)’s share price gapped down prior to trading on Thursday . The stock had previously closed at $52.96, but opened at $47.86. Calix shares last traded at $47.37, with a volume of 720,446 shares changing hands.

Key Stories Impacting Calix

Here are the key news stories impacting Calix this week:

• Positive Sentiment: Q4 beat and strong revenue growth — Calix reported $0.39 EPS vs. $0.38 consensus and revenue of $272.4M (up ~32% YoY), showing healthy demand and execution. Calix Tops Q4 Earnings and Revenue Estimates
• Positive Sentiment: Board ups buyback by $125M — Board authorized an additional $125M repurchase (about 3.4% of shares), which reduces share count risk and signals management’s view that shares are undervalued. Calix Increases Stock Repurchase Authorization
• Positive Sentiment: Analyst support and upside potential — Zacks upgraded Calix to strong-buy and Rosenblatt reiterated buy; consensus price-target commentary points to sizable upside potential from current levels. Zacks Upgrade Wall Street Analysts See Upside
• Positive Sentiment: Large BEAD opportunity and 2026 growth outlook — Management highlighted a $1B–$1.5B BEAD opportunity and projected sustained revenue growth, supporting longer-term secular thesis. Calix Outlines BEAD Opportunity
• Neutral Sentiment: Technicals look oversold — Some analysts note the stock is in oversold territory and could be ripe for a technical bounce, which may attract short-term traders. Technical Turnaround Note
• Negative Sentiment: Market focused on Q1 margin pressure — Despite headline guidance ranges that roughly cover/beat consensus, management warned of margin pressure driven by customer mix and overlapping cloud costs in Q1; that commentary triggered the sell-off as investors worried about near-term profitability. Calix Share Price Decreases Despite Q4 Growth
• Negative Sentiment: Investors punished guidance tone despite inline beats — Multiple outlets reported shares tumbling after the earnings call as investors parsed the company’s messaging on margins and near-term costs. Calix Shares Tumble on Guidance

Analysts Set New Price Targets

A number of equities analysts have recently commented on the company. Needham & Company LLC cut their price objective on Calix from $82.00 to $70.00 and set a “buy” rating on the stock in a report on Thursday. JPMorgan Chase & Co. upgraded shares of Calix from a “neutral” rating to an “overweight” rating and raised their price target for the company from $75.00 to $90.00 in a report on Thursday, January 15th. Roth Mkm set a $85.00 price target on shares of Calix and gave the company a “buy” rating in a research report on Thursday, October 30th. UBS Group reissued an “outperform” rating and issued a $75.00 price objective on shares of Calix in a research report on Friday, October 31st. Finally, Zacks Research upgraded shares of Calix from a “hold” rating to a “strong-buy” rating in a report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $77.50.

Calix Price Performance

The firm has a market capitalization of $2.95 billion, a price-to-earnings ratio of 178.16 and a beta of 1.55. The business’s 50-day moving average price is $54.37 and its 200 day moving average price is $57.67.

Calix (NYSE:CALX) last released its quarterly earnings results on Wednesday, January 28th. The communications equipment provider reported $0.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.38 by $0.01. Calix had a net margin of 1.79% and a return on equity of 2.31%. The firm had revenue of $272.40 million for the quarter, compared to the consensus estimate of $267.36 million. During the same quarter in the previous year, the firm posted $0.08 EPS. The firm’s quarterly revenue was up 32.2% on a year-over-year basis. Calix has set its Q1 2026 guidance at 0.340-0.400 EPS. As a group, sell-side analysts expect that Calix, Inc will post -0.43 earnings per share for the current year.

Calix announced that its board has initiated a stock repurchase program on Wednesday, January 28th that allows the company to buyback $125.00 million in outstanding shares. This buyback authorization allows the communications equipment provider to repurchase up to 3.4% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s leadership believes its shares are undervalued.

Insider Activity

In other news, CFO Cory Sindelar sold 50,000 shares of the firm’s stock in a transaction that occurred on Thursday, November 6th. The shares were sold at an average price of $65.30, for a total transaction of $3,265,000.00. Following the completion of the sale, the chief financial officer owned 76,555 shares of the company’s stock, valued at approximately $4,999,041.50. This trade represents a 39.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Shane Todd Marshall Eleniak sold 50,000 shares of the company’s stock in a transaction on Tuesday, November 4th. The shares were sold at an average price of $65.34, for a total transaction of $3,267,000.00. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 520,000 shares of company stock worth $33,449,800. 16.90% of the stock is currently owned by insiders.

Institutional Trading of Calix

Several hedge funds and other institutional investors have recently bought and sold shares of CALX. State of New Jersey Common Pension Fund D lifted its holdings in Calix by 4.7% during the 4th quarter. State of New Jersey Common Pension Fund D now owns 38,975 shares of the communications equipment provider’s stock worth $2,063,000 after buying an additional 1,743 shares during the last quarter. Pictet Asset Management Holding SA raised its position in shares of Calix by 9.6% during the 4th quarter. Pictet Asset Management Holding SA now owns 9,117 shares of the communications equipment provider’s stock valued at $483,000 after acquiring an additional 795 shares in the last quarter. Huntleigh Advisors Inc. lifted its stake in Calix by 5.6% during the fourth quarter. Huntleigh Advisors Inc. now owns 11,652 shares of the communications equipment provider’s stock worth $617,000 after purchasing an additional 613 shares during the last quarter. Marathon Capital Management boosted its holdings in Calix by 0.5% in the fourth quarter. Marathon Capital Management now owns 80,585 shares of the communications equipment provider’s stock worth $4,265,000 after purchasing an additional 385 shares during the period. Finally, Universal Beteiligungs und Servicegesellschaft mbH boosted its holdings in Calix by 9.0% in the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 28,355 shares of the communications equipment provider’s stock worth $1,501,000 after purchasing an additional 2,340 shares during the period. 98.14% of the stock is owned by institutional investors.

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.