Top-level insiders have access to real-time information on their companies and often also have a wealth of experience and knowledge to help them evaluate their firms’ prospects. If they are spending a large amount of money on company stock, it’s generally worth taking a closer look.
In this report, we are going to highlight some interesting insider buying at Calix Inc (CALX:US). Calix is a leading global provider of cloud platforms, systems, and services. Its solutions, which are designed to enable businesses to innovate and transform, 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 $4.5 billion.
Calix Inc: Insider Buying
Our data shows that on October 28, Calix’s Lead Independent Director Don Listwin bought 15,000 shares at a price of $60.00 per share. This trade cost the insider $900,000 and increased his holding to 799,977 shares.
This trading activity is worth highlighting due to the fact that past purchases from Mr. Listwin have turned out to be very profitable trading signals. For example, in February 2021, Mr. Listwin picked up 20,000 shares at a price of $35.75 per share. Since then, the stock has risen 99%. Meanwhile, in August 2020, the insider snapped up 15,000 shares at a price of $21 per share. Since then, the stock has climbed 239%.
It’s worth noting that the latest trade from Mr. Listwin – who previously served as Chairman of Calix for over a decade – is his largest Calix purchase ever. This suggests that the insider is very confident the stock can keep climbing.
Calix’s recent Q3 results showed that the company has a lot of momentum right now.
For the period, total revenue amounted to $172.2 million versus $150.5 million a year earlier. Meanwhile, gross profit came in at $89.5 million versus $76.0 million in Q3 2020. Net income per diluted common share was $0.35, well ahead of the consensus forecast of $0.28.
During the quarter, the company launched and signed its first customers for its third cloud solution, Operations Cloud, which leverages machine learning and actionable insights to automate workflows, lower support costs, and increase subscriber satisfaction. It also added 38 new broadband service provider (BSP) customers.
Looking ahead, management was confident that the company can keep growing. “We start the fourth quarter of 2021 in the strongest financial position in our history with robust bookings, clear customer and product focus and believe we are perfectly placed to execute on the opportunity ahead,” said Chairman and CEO Carl Russo.
In light of these results, we see the insider buying here as a bullish indicator.