Viavi Solutions (NASDAQ:VIAV) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Viavi Solutions from “strong buy” to “hold.” Despite mixed analyst views, the stock retains a “Moderate Buy” consensus rating with an average price target of $55.43.
• Viavi reported quarterly EPS of $0.34, exceeding the $0.30 consensus estimate, while revenue reached $443.1 million—up 52.5% year over year and above expectations.
• Company insiders sold nearly 200,000 shares worth approximately $8.0 million over the past 90 days, while institutional investors continue to own a dominant 95.54% of outstanding shares.

Viavi Solutions (NASDAQ:VIAV - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report issued on Monday, Zacks reports.

Several other research firms have also recently weighed in on VIAV. UBS Group cut their price target on Viavi Solutions from $60.00 to $44.00 and set a "neutral" rating for the company in a report on Thursday, August 6th. Weiss Ratings downgraded shares of Viavi Solutions from a "sell (d+)" rating to a "sell (d)" rating in a research note on Tuesday, September 8th. B. Riley Financial reduced their price objective on shares of Viavi Solutions from $63.00 to $60.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. Wall Street Zen downgraded Viavi Solutions from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 29th. Finally, Stifel Nicolaus set a $65.00 price objective on Viavi Solutions in a report on Wednesday, September 23rd. Six research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $55.43.

Viavi Solutions Price Performance

Shares of Viavi Solutions stock opened at $41.28 on Monday. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.62 and a current ratio of 1.85. The stock's fifty day moving average is $39.37 and its 200 day moving average is $42.94. The stock has a market cap of $10.15 billion, a P/E ratio of -275.18 and a beta of 1.21. Viavi Solutions has a one year low of $12.43 and a one year high of $60.43.

Viavi Solutions (NASDAQ:VIAV - Get Free Report) last released its earnings results on Wednesday, August 5th. The communications equipment provider reported $0.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.30 by $0.04. The company had revenue of $443.10 million during the quarter, compared to analyst estimates of $432.62 million. Viavi Solutions had a negative net margin of 2.00% and a positive return on equity of 19.60%. The firm's quarterly revenue was up 52.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.13 EPS. Viavi Solutions has set its Q1 2027 guidance at 0.400-0.420 EPS. Sell-side analysts anticipate that Viavi Solutions will post 1.42 earnings per share for the current year.

Insiders Place Their Bets

In other Viavi Solutions news, SVP Luke M. Scrivanich sold 35,866 shares of the business's stock in a transaction that occurred on Wednesday, September 23rd. The shares were sold at an average price of $36.24, for a total transaction of $1,299,783.84. Following the sale, the senior vice president owned 39,598 shares of the company's stock, valued at approximately $1,435,031.52. The trade was a 47.53% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul McNab sold 11,032 shares of the business's stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $38.97, for a total value of $429,917.04. Following the sale, the executive vice president owned 25,639 shares in the company, valued at approximately $999,151.83. The trade was a 30.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 199,694 shares of company stock valued at $7,976,233. Company insiders own 1.20% of the company's stock.

Institutional Investors Weigh In On Viavi Solutions

Hedge funds have recently added to or reduced their stakes in the business. WPG Advisers LLC boosted its stake in shares of Viavi Solutions by 96.2% during the first quarter. WPG Advisers LLC now owns 775 shares of the communications equipment provider's stock worth $26,000 after buying an additional 380 shares during the period. Silvant Capital Management LLC acquired a new position in shares of Viavi Solutions in the second quarter valued at approximately $33,000. Persistent Asset Partners Ltd acquired a new stake in shares of Viavi Solutions during the second quarter worth $38,000. Carolina Wealth Advisors LLC grew its position in Viavi Solutions by 83.2% in the 2nd quarter. Carolina Wealth Advisors LLC now owns 852 shares of the communications equipment provider's stock valued at $41,000 after buying an additional 387 shares during the last quarter. Finally, Cedar Mountain Advisors LLC purchased a new position in Viavi Solutions during the 1st quarter worth $50,000. 95.54% of the stock is owned by hedge funds and other institutional investors.

About Viavi Solutions

Viavi Solutions Inc NASDAQ: VIAV develops test, measurement, and assurance technologies for communications networks, optical systems, and related industrial applications. Its solutions are used by network equipment manufacturers, communications service providers, contractors, and government organizations to install, validate, monitor, and maintain wired and wireless networks.

The company's offerings include instruments and software for fiber-optic testing, network performance monitoring, service activation, troubleshooting, and assurance.

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