12-month performance: +82% Insider activity: Bullish Buying pattern: Large purchase from Chairman Recent news: Strong Q1 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 $687 million.
We last covered Calix in February, right before global equity markets crashed. In that article, we highlighted the fact that Chairman Don Listwin had recently purchased 20,000 Calix shares. That was a bullish signal, in our view. Of course, like most stocks, Calix was hit hard in late February and early March as equity markets tanked. In the space of less than a month, the tech stock fell from around $10.50 to below $6. However, since then, Calix shares have rebounded in a spectacular fashion – breaking out to new highs – on the back of strong Q1 results and a number of broker price target upgrades. Since our article in February, the stock has risen around 16% versus a fall of approximately 12% for the S&P 500 index.
Source: 2iQ Research
Looking at recent insider transaction activity here, we think the stock has the potential to continue outperforming. We say this because on 1 May, Listwin purchased another 30,000 shares at a price of $12.11 per share. This purchase, which cost the insider a total of $363,400, represented his largest purchase in over five years. This suggests he is very confident about the future and expects the stock to keep rising. We view this insider purchase as another bullish signal.
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