NEW YORK (AP) - Shares of Calix Inc., which makes telecommunications equipment, climbed Tuesday after Chief Financial Officer Michael Ashby disclosed that he's buying more shares.
THE SPARK: In a regulatory filing Tuesday, Ashby said he's buying 50,000 shares for $278,500. He had already been the company's tenth-largest stockholder, owning 1.4 million shares, or about 3 percent of the company's outstanding stock.
His purchase follows director Don Listwin's disclosure last week that he was buying 31,117 shares.
THE BIG PICTURE: Stock purchases by a company's executives and board members are often seen as a vote of confidence in the company. Calix shares dropped sharply in July after the company cut its financial outlook, saying customers are reining in spending because of the weak economy.
SHARE ACTION: Shares of the Petaluma, Calif., company rose 34 cents, or 6.2 percent, to $5.81 in late morning trading. The stock hit an all-time low of $4.25 on Aug. 2. Calix went public in March 2010 at an initial public stock offering price of $13.
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