Calix Inc (CALX): Are Hedge Funds Right About This Stock?

Calix Inc (NYSE:CALX) has experienced a decrease in hedge fund interest of late.

In the 21st century investor’s toolkit, there are a multitude of methods shareholders can use to analyze Mr. Market. Some of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite fund managers can outpace the market by a solid margin (see just how much).

Just as key, bullish insider trading sentiment is a second way to break down the financial markets. There are a number of stimuli for a corporate insider to downsize shares of his or her company, but just one, very simple reason why they would initiate a purchase. Various empirical studies have demonstrated the valuable potential of this tactic if you know what to do (learn more here).

With all of this in mind, we’re going to take a look at the key action regarding Calix Inc (NYSE:CALX).

How are hedge funds trading Calix Inc (NYSE:CALX)?

In preparation for this quarter, a total of 13 of the hedge funds we track held long positions in this stock, a change of -13% from the previous quarter. With the smart money’s sentiment swirling, there exists a few noteworthy hedge fund managers who were boosting their holdings meaningfully.

Of the funds we track, Jericho Capital Asset Management, managed by Josh Resnick, holds the biggest position in Calix Inc (NYSE:CALX). Jericho Capital Asset Management has a $15.5 million position in the stock, comprising 1.6% of its 13F portfolio. Sitting at the No. 2 spot is Israel Englander of Millennium Management, with a $7.4 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedgies with similar optimism include Peter A. Wright’s P.A.W. CAPITAL PARTNERS, Cliff Asness’s AQR Capital Management and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Because Calix Inc (NYSE:CALX) has experienced a declination in interest from the smart money, we can see that there lies a certain “tier” of hedgies that decided to sell off their positions entirely heading into Q2. It’s worth mentioning that Gregory A. Weaver’s Invicta Capital Management said goodbye to the largest position of all the hedgies we watch, valued at about $11.2 million in stock., and Peter S. Park of Park West Asset Management was right behind this move, as the fund dropped about $1.9 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 2 funds heading into Q2.

What do corporate executives and insiders think about Calix Inc (NYSE:CALX)?

Insider trading activity, especially when it’s bullish, is most useful when the primary stock in question has experienced transactions within the past 180 days. Over the last half-year time period, Calix Inc (NYSE:CALX) has experienced 1 unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Calix Inc (NYSE:CALX). These stocks are 8×8, Inc. (NASDAQ:EGHT), Sierra Wireless, Inc. (USA) (NASDAQ:SWIR), CalAmp Corp. (NASDAQ:CAMP), Allot Communications Ltd. (NASDAQ:ALLT), and Comtech Telecomm. Corp. (NASDAQ:CMTL). This group of stocks are in the communication equipment industry and their market caps match CALX’s market cap.

With the results demonstrated by our tactics, retail investors must always keep an eye on hedge fund and insider trading activity, and Calix Inc (NYSE:CALX) shareholders fit into this picture quite nicely.

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