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

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

CALX has been the topic of a number of other research reports. Roth Capital reissued a “buy” rating on shares of Calix in a report on Tuesday. JPMorgan Chase & Co. dropped their target price on shares of Calix from $70.00 to $65.00 and set an “overweight” rating for the company in a research note on Wednesday, April 22nd. Rosenblatt Securities reduced their target price on shares of Calix from $70.00 to $55.00 and set a “buy” rating on the stock in a research report on Tuesday. Wall Street Zen cut shares of Calix from a “strong-buy” rating to a “buy” rating in a research note on Saturday. Finally, Northland Securities raised shares of Calix from a “market perform” rating to an “outperform” rating and set a $52.00 price target on the stock in a research note on Tuesday. Seven research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Calix presently has an average rating of “Moderate Buy” and a consensus price target of $64.86.

Calix Trading Down 2.5%

NYSE CALX opened at $37.38 on Monday. The firm has a market cap of $2.38 billion, a price-to-earnings ratio of 50.51 and a beta of 1.23. The company has a 50 day moving average of $38.54 and a 200-day moving average of $46.37. Calix has a 1-year low of $34.26 and a 1-year high of $71.22.

Calix (NYSE:CALX) last released its quarterly earnings results on Monday, July 20th. The communications equipment provider reported $0.47 earnings per share for the quarter, beating analysts’ consensus estimates of $0.40 by $0.07. Calix had a return on equity of 5.99% and a net margin of 4.61%.The firm had revenue of $293.33 million during the quarter, compared to analysts’ expectations of $289.96 million. During the same period last year, the firm posted $0.33 EPS. The business’s revenue was up 21.3% on a year-over-year basis. Calix has set its Q3 2026 guidance at 0.370-0.450 EPS. On average, analysts forecast that Calix will post 0.83 earnings per share for the current year.

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

Insiders Place Their Bets

In related news, Director Carl Russo sold 25,000 shares of the stock in a transaction that occurred on Monday, April 27th. The shares were 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 represents a 1.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 17.44% of the stock is owned by corporate insiders.

Institutional Trading of Calix

Several institutional investors and hedge funds have recently made changes to their positions in the business. Handelsbanken Fonder AB lifted its stake in shares of Calix by 8.5% in the 2nd quarter. Handelsbanken Fonder AB now owns 22,900 shares of the communications equipment provider’s stock valued at $855,000 after purchasing an additional 1,800 shares during the period. Harbor Investment Advisory LLC acquired a new stake in shares of Calix during the second quarter worth $31,000. Pacer Advisors Inc. grew its stake in shares of Calix by 26.6% during the first quarter. Pacer Advisors Inc. now owns 8,255 shares of the communications equipment provider’s stock worth $404,000 after purchasing an additional 1,735 shares during the period. Bank of America Corp DE increased its holdings in Calix by 63.3% in the first quarter. Bank of America Corp DE now owns 750,117 shares of the communications equipment provider’s stock valued at $36,748,000 after purchasing an additional 290,661 shares during the last quarter. Finally, Edgestream Partners L.P. bought a new stake in Calix in the first quarter valued at about $3,711,000. Institutional investors own 98.14% of the company’s stock.

Key Headlines 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

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.