Calix (NYSE:CALX) Downgraded by Zacks Research to Strong Sell

Calix (NYSE:CALX) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Monday,Zacks.com reports.

A number of other brokerages also recently weighed in on CALX. Wall Street Zen downgraded shares of Calix from a “strong-buy” rating to a “buy” rating in a report on Saturday. Needham & Company LLC dropped their price objective on shares of Calix from $70.00 to $62.00 and set a “buy” rating on the stock in a report on Thursday, April 23rd. JPMorgan Chase & Co. cut their price objective on shares of Calix from $70.00 to $65.00 and set an “overweight” rating for the company in a research report on Wednesday, April 22nd. Roth Capital reiterated a “buy” rating on shares of Calix in a research note on Tuesday. Finally, Rosenblatt Securities decreased their target price on Calix from $70.00 to $55.00 and set a “buy” rating on the stock in a research report on Tuesday. Seven equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s 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%

Shares of NYSE:CALX opened at $37.38 on Monday. The company has a market cap of $2.38 billion, a price-to-earnings ratio of 50.51 and a beta of 1.23. The business has a 50 day moving average price of $38.54 and a 200 day moving average price of $46.37. Calix has a twelve month low of $34.26 and a twelve month high of $71.22.

Calix (NYSE:CALX) last issued its quarterly earnings results on Monday, July 20th. The communications equipment provider reported $0.47 EPS for the quarter, topping the consensus estimate of $0.40 by $0.07. The company had revenue of $293.33 million for the quarter, compared to the consensus estimate of $289.96 million. Calix had a return on equity of 5.99% and a net margin of 4.61%.The company’s revenue for the quarter was up 21.3% on a year-over-year basis. During the same period in the previous year, the business posted $0.33 EPS. Calix has set its Q3 2026 guidance at 0.370-0.450 EPS. Analysts anticipate that Calix will post 0.83 EPS for the current year.

Calix declared that its Board of Directors has initiated a share repurchase plan on Tuesday, April 21st that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the communications equipment provider to reacquire up to 3% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

Insider Activity at Calix

In other news, Director Carl Russo sold 25,000 shares of the firm’s stock in a transaction dated 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 transaction, the director directly 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 position. The transaction was disclosed in a legal filing 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. Insiders own 17.44% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Farther Finance Advisors LLC grew its stake in shares of Calix by 63.0% in the 4th quarter. Farther Finance Advisors LLC now owns 551 shares of the communications equipment provider’s stock valued at $29,000 after purchasing an additional 213 shares during the period. Raymond James Financial Inc. bought a new position in shares of Calix during the 2nd quarter worth approximately $30,000. Harbor Investment Advisory LLC acquired a new stake in Calix in the 2nd quarter valued at $31,000. Caitong International Asset Management Co. Ltd boosted its stake in Calix by 24,733.3% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 745 shares of the communications equipment provider’s stock valued at $39,000 after buying an additional 742 shares in the last quarter. Finally, Strive Financial Group LLC bought a new stake in Calix in the fourth quarter valued at $40,000. Institutional investors and hedge funds own 98.14% of the company’s stock.

Calix News Roundup

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.