Viavi Solutions (NASDAQ:VIAV) Raised to "Strong-Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Viavi Solutions from “Buy” to “Strong Buy.”
• Viavi beat quarterly expectations, reporting earnings of $0.47 per share and revenue of $469.3 million; revenue increased 56.9% year over year.
• Analyst views remain mixed: the consensus is “Moderate Buy” with a $57.83 price target, while UBS cut its target to $33 and moved to “Neutral.”

Viavi Solutions (NASDAQ:VIAV - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a report released on Saturday, Wall Street Zen reports.

A number of other brokerages also recently issued reports on VIAV. Stifel Nicolaus set a $65.00 price objective on Viavi Solutions in a research note on Wednesday, September 23rd. Needham & Company LLC dropped their price target on Viavi Solutions from $60.00 to $53.00 and set a "buy" rating for the company in a research report on Thursday. Rosenblatt Securities restated a "buy" rating and set a $70.00 price objective on shares of Viavi Solutions in a research note on Wednesday, September 23rd. UBS Group lowered their target price on shares of Viavi Solutions from $44.00 to $33.00 and set a "neutral" rating on the stock in a research report on Thursday. Finally, B. Riley Financial decreased their price objective on shares of Viavi Solutions from $63.00 to $60.00 and set a "buy" rating for the company in a report on Thursday, August 6th. Five equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $57.83.

Viavi Solutions Price Performance

Shares of Viavi Solutions stock opened at $28.47 on Friday. Viavi Solutions has a twelve month low of $15.51 and a twelve month high of $60.43. The business's fifty day moving average price is $36.67 and its 200 day moving average price is $38.64. The company has a current ratio of 1.85, a quick ratio of 1.62 and a debt-to-equity ratio of 0.27. The stock has a market capitalization of $7.00 billion, a P/E ratio of 118.63 and a beta of 1.31.

Viavi Solutions (NASDAQ:VIAV - Get Free Report) last released its quarterly earnings data on Wednesday, November 4th. The communications equipment provider reported $0.47 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.41 by $0.06. Viavi Solutions had a positive return on equity of 19.60% and a negative net margin of 2.00%. The business had revenue of $469.30 million for the quarter, compared to analysts' expectations of $455.06 million. During the same period in the previous year, the business posted $0.15 earnings per share. Viavi Solutions's quarterly revenue was up 56.9% on a year-over-year basis. As a group, research analysts anticipate that Viavi Solutions will post 1.42 earnings per share for the current year.

Insider Activity

In related news, SVP Luke Scrivanich sold 35,866 shares of the stock in a transaction on Wednesday, September 23rd. The stock was sold at an average price of $36.24, for a total value of $1,299,783.84. Following the sale, the senior vice president owned 39,598 shares in the company, valued at approximately $1,435,031.52. This represents a 47.53% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul McNab sold 11,032 shares of the stock in a transaction on Friday, September 11th. The shares were sold at an average price of $38.97, for a total value of $429,917.04. Following the completion of the sale, the executive vice president directly owned 25,639 shares of the company's stock, valued at $999,151.83. The trade was a 30.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 199,694 shares of company stock worth $7,976,233 over the last three months. Company insiders own 1.20% of the company's stock.

Hedge Funds Weigh In On Viavi Solutions

A number of hedge funds have recently bought and sold shares of the company. BlackRock Inc. bought a new stake in Viavi Solutions in the 2nd quarter valued at $1,228,529,000. Assenagon Asset Management S.A. raised its holdings in shares of Viavi Solutions by 1,402.9% in the 3rd quarter. Assenagon Asset Management S.A. now owns 5,639,752 shares of the communications equipment provider's stock valued at $236,418,000 after acquiring an additional 5,264,496 shares in the last quarter. Bank of America Corp DE purchased a new position in shares of Viavi Solutions during the second quarter valued at approximately $134,922,000. Bank of New York Mellon Corp purchased a new position in shares of Viavi Solutions during the second quarter valued at approximately $87,914,000. Finally, Allspring Global Investments Holdings LLC purchased a new position in Viavi Solutions in the 1st quarter worth approximately $75,294,000. 95.54% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Viavi Solutions

Here are the key news stories impacting Viavi Solutions this week:

• Positive Sentiment: Viavi reported adjusted earnings of $0.47 per share, beating estimates of about $0.40–$0.41 and rising from $0.15 a year earlier; revenue also topped expectations. The company cited strength in data-center and aerospace/defense demand, and expects sequential revenue growth through fiscal 2027, with semiconductor testing adding to its opportunities. Article: VIAV Q1 Earnings Beat Estimates on Data Center, A&D Strength
• Positive Sentiment: The company announced a $500 million share-buyback plan, which could support per-share earnings and signal confidence in its prospects. Article: Viavi announces a $500 million equity buyback
• Neutral Sentiment: Needham cut its price target from $60 to $53 but retained a Buy rating. The lower target is a caution, though the analyst remains constructive. Article: Needham analyst recommendation
• Negative Sentiment: UBS lowered its target from $44 to $33 and moved to Neutral. Although the revised target is still above the quoted $28.47 share price, the cut and less favorable rating could weigh on sentiment. Article: UBS analyst recommendation

About Viavi Solutions

Viavi Solutions Inc NASDAQ: VIAV develops equipment, software and services used to test, monitor and secure communications networks. Its solutions support network operators, equipment manufacturers, government agencies and other organizations involved in the design, deployment and operation of wired and wireless networks.

The company's products include fiber-optic and broadband test instruments, network performance and service-assurance software, optical spectrum analyzers, monitoring systems and tools for testing 5G and other advanced communications technologies.

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