Calix Inc (CALX: US)
12-month performance: +22%
Insider activity: Bullish
Buying pattern: Purchases from Chairman
Recent news: Solid Q4 results
Calix is a leading global provider of cloud platforms, systems, and services. Its solutions help customers build next-generation networks and leverage the power of big data analytics. The company is listed on the New York Stock Exchange and currently has a market capitalisation of $581 million.
We last covered Calix in February 2019, when the stock was trading at around $8.50. At the time, the stock had just experienced a sharp pullback on the back of a fourth-quarter revenue miss. However, we noticed that both the Chairman and the CFO were buying shares, which, in our view, was a signal that the stock may rebound. Fast forward to today, and Calix shares now trade near the $10.50 mark, after the group returned to year-over-year revenue growth last quarter. That represents a market-beating gain of 24% since our last coverage of the stock.
Source: 2iQ Research
Looking at insider transaction activity, we think the outlook for Calix shares remains favourable. We say this because in the last week Chairman Don Listwin has purchased Calix stock twice, spending a total of $204,000 on shares. In addition, Independent Director Kevin Denuccio has also purchased $51,000 worth of shares this month. These purchases suggest that these insiders are confident about the future and continue to see value in the stock, despite its recent price rise. Given these insider buys, we think Calix has the potential to keep rising.