Top-level corporate insiders are intimately acquainted with their companies and tend to have the most up-to-date information on performance and future prospects. If these insiders are buying company stock, it’s generally a good sign.
In this report, we are going to highlight a bullish insider purchase at Calix Inc (CALX:US). 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 capitalization of $2.2 billion.
Calix Inc: Insider Buying
Our records show that on 9 February, Calix Chairman Don Listwin bought 20,000 shares in his company at a price of $35.75 per share. This purchase – which cost the insider a total of $714,954 – increased his holding to 300,000 shares from 280,000 shares.
A Top-Tier Insider With A Great Track Record
This insider purchase stands out for a couple of reasons. Firstly, Listwin is a top-tier insider. He has served as Chairman of the Board since 2007 and has over 30 years of experience in the networking industry. He is likely to have a very good understanding of Calix’s prospects.
Secondly, last year, Mr Listwin made a number of purchases that were timed very well. In February, he purchased 20,000 shares at a price of $10.20 per share. Meanwhile, in August, the insider picked up 65,000 shares near the $20 mark. Today, the stock trades near $35 meaning that Listwin has made substantial profits. Our Insider Model views his latest purchase as very bullish.
Strong Q4 Results
Calix’s results for the fourth quarter of 2020 broke a number of quarterly records and were well above the company’s financial guidance.
Total revenue increased 41% year on year to $170 million – above the high end of its guidance range – driven by demand for the company’s platforms, the continued ramp of new offerings, as well as an increase in legacy product purchases. Meanwhile, Non-GAAP earnings per diluted share came in at $0.45, up from $0.09 in the same period the year before. The company also advised that Calix Cloud customer count increased more than 90% year on year.
Looking ahead, Calix said that it enters 2021 in the strongest financial position in its history and that it believes it is “perfectly placed” to execute on the opportunity ahead.
In light of these strong results and the confident outlook, we see the insider buying here as a bullish signal.