Insider Buying

Insider Buying Report: Calix Inc (CALX:US)

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Calix Inc (CALX:US)

12-month performance: +71%
Insider activity: Bullish
Insider buying pattern: Large purchase from Chairman
Recent news: Good Q2 results

Company insiders tend to have the most up-to-date information on their companies’ prospects. If they’re buying shares, it’s generally a positive development.

In this article, we are going to highlight recent insider buying 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 capitalisation of $1.3 billion.

Large Chairman purchase

The insider transaction that looks interesting here is a large purchase from Chairman, Don Listwin earlier this month. According to Form 4 filings, the insider purchased 15,000 shares on 3 August at a price of $21 per share. The total cost of the purchase was $314,996.

Calix (2)   Source: 2iQ Research

This is not the first time Listwin has purchased Calix shares in 2020. In mid-May, we noted that the insider had just purchased 30,000 shares. At the time, we said that this insider buying activity was a bullish signal. Since then, the stock has risen roughly 77%. So, Listwin’s purchase was timed well.

Insider buying at a higher price

This recent insider buy from Listwin looks interesting for a few reasons.
Firstly, it’s at a much higher price than his previous purchases. This purchase at a high price suggests that the Chairman believes the stock can continue to climb higher.

Secondly, Listwin has served as Chairman since 2007. So, he’s likely to have a very good understanding of the company and its future prospects.

Strong Q2 results

Looking at Calix’s recent Q2 results, issued in July, it’s clear that the company has momentum at present. Overall results for Q2 were well above the financial guidance for the quarter due to strong demand for the company’s services. Total revenue was above the high end of the guidance range, increasing 19% compared to the same quarter in 2019. Meanwhile, earnings were also well above the guidance.

Given this strong recent performance, we see the Chairman’s recent purchase as a bullish signal.