Calix Shares Soar 1.28% on Strong Earnings, Buyback Plan

Calix (CALX) shares surged 1.28% today, reaching their highest level since September 2023, with an intraday gain of 1.80%.

The strategy of buying CALX shares after they reached a recent high and holding for 1 week yielded strong results over the past 5 years. The annualized return was 41.5%, with a total profit of 219.5%. This outperformed the market, which had a 14% annualized return and a total profit of 70%. The strategy's sharp drawdown of 18.3% in 2023 was minimal compared to the market's 37.6% drawdown. It demonstrates the effectiveness of buying CALX after a pullback from high prices, as the stock consistently performed well over the 5-year period, aligning with the trend-seeking approach.

Calix has recently launched the GigaSpire® 7u6m Wi-Fi 7 extender, demonstrating its commitment to enhancing broadband service capabilities. This strategic move is aimed at improving the company's competitive edge in the market.

On April 28th, Director Carl Russo sold 25,000 shares of Calix at an average price of $39.59, resulting in a 1.16% decrease in their ownership of the stock. This transaction could be seen as a signal of the director's confidence in the company's future prospects, despite the slight reduction in their stake.

Multiple analysts have assigned a "buy" rating to Calix, with target prices ranging from $38.00 to $53.00. The consensus rating is “Moderate Buy” with a target price of $47.83. These ratings reflect the positive outlook on the company's growth potential and financial performance.

In its latest quarterly earnings report on April 21st, Calix reported $0.19 EPS, surpassing analysts’ consensus estimates of $0.13. Revenue was $220.20 million, exceeding the consensus estimate of $206.98 million. This strong financial performance indicates that Calix is on a solid growth trajectory, which could further boost investor confidence.

Calix announced a stock buyback plan on April 21st, authorizing the repurchase of $100 million in shares. This move suggests that the company believes its shares are undervalued and aims to enhance shareholder value by reducing the number of outstanding shares.