Viavi Solutions Inc. (NASDAQ:VIAV) Stock Now Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Analysts’ consensus is “Moderate Buy”: Five of eight analysts rate Viavi Solutions a Buy, two say Hold and one says Sell; the average 12-month price target is $59.67.
• Viavi reported quarterly adjusted earnings of $0.47 per share, beating the $0.41 estimate, and revenue of $469.3 million, up 56.9% year over year.
• Management cited demand from data-center and defense customers and announced a $500 million share buyback; meanwhile, Needham cut its price target to $53 while keeping its Buy rating.

Viavi Solutions Inc. (NASDAQ:VIAV - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the eight analysts that are covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, two have given a hold recommendation and five have given a buy recommendation to the company. The average twelve-month price target among brokerages that have covered the stock in the last year is $59.67.

Several equities analysts recently commented on VIAV shares. Needham & Company LLC dropped their price target on shares of Viavi Solutions from $60.00 to $53.00 and set a "buy" rating for the company in a research report on Thursday. Weiss Ratings cut shares of Viavi Solutions from a "sell (d+)" rating to a "sell (d)" rating in a research note on Tuesday, September 8th. Stifel Nicolaus set a $65.00 price objective on Viavi Solutions in a report on Wednesday, September 23rd. UBS Group cut their target price on Viavi Solutions from $60.00 to $44.00 and set a "neutral" rating on the stock in a research report on Thursday, August 6th. Finally, B. Riley Financial reduced their target price on Viavi Solutions from $63.00 to $60.00 and set a "buy" rating on the stock in a report on Thursday, August 6th.

Viavi Solutions Price Performance

Shares of NASDAQ:VIAV opened at $26.30 on Friday. The company has a market cap of $6.47 billion, a P/E ratio of 109.59 and a beta of 1.31. The business has a fifty day simple moving average of $36.87 and a 200-day simple moving average of $38.59. Viavi Solutions has a 52 week low of $15.51 and a 52 week high of $60.43. The company has a quick ratio of 1.62, a current ratio of 1.85 and a debt-to-equity ratio of 0.27.

Viavi Solutions (NASDAQ:VIAV - Get Free Report) last released its earnings results on Wednesday, November 4th. The communications equipment provider reported $0.47 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.06. The firm had revenue of $469.30 million for the quarter, compared to the consensus estimate of $455.06 million. Viavi Solutions had a return on equity of 27.07% and a net margin of 3.97%. The firm's revenue for the quarter was up 56.9% compared to the same quarter last year. During the same period in the prior year, the business posted $0.15 earnings per share. Equities research analysts forecast that Viavi Solutions will post 1.42 EPS for the current year.

Key Stories Impacting Viavi Solutions

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

• Positive Sentiment: Fiscal Q1 adjusted earnings of $0.47 per share beat estimates of about $0.41, while revenue of $469.3 million exceeded forecasts and rose 56.9% year over year. Reports also highlighted a 213.3% increase in earnings. VIAV Q1 Earnings Beat Estimates on Data Center, A&D Strength
• Positive Sentiment: Management cited data-center and defense demand, expanding semiconductor testing opportunities, and expected sequential revenue gains through fiscal 2027. The company also announced a $500 million share buyback, which could support shareholder returns. VIAV Q1 Earnings Call Maps New Data Center Test Markets Viavi announces a $500 million equity buyback
• Neutral Sentiment: Shares fell despite the earnings beat and positive outlook, so the reported operating results alone do not explain the market reaction. Viavi Solutions dropped: What is behind the move?
• Negative Sentiment: Needham lowered its price target from $60 to $53, although it maintained a Buy rating. The reduced target may have weighed on sentiment. Needham analyst recommendations

Insider Transactions at Viavi Solutions

In other news, EVP Ilan Daskal sold 56,290 shares of the business's stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $36.29, for a total transaction of $2,042,764.10. Following the completion of the sale, the executive vice president owned 10,132 shares in the company, valued at approximately $367,690.28. The trade was a 84.75% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Paul McNab sold 11,032 shares of the business's stock in a transaction dated Friday, September 11th. The stock was 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 of the company's stock, valued at $999,151.83. The trade was a 30.08% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 199,694 shares of company stock valued at $7,976,233. Insiders own 1.20% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. purchased a new position in Viavi Solutions in the second quarter valued at about $1,228,529,000. Assenagon Asset Management S.A. increased its holdings in Viavi Solutions by 1,402.9% during the 3rd quarter. Assenagon Asset Management S.A. now owns 5,639,752 shares of the communications equipment provider's stock worth $236,418,000 after purchasing an additional 5,264,496 shares during the last quarter. Granahan Investment Management LLC purchased a new stake in Viavi Solutions during the 1st quarter worth approximately $3,187,000. Healthcare of Ontario Pension Plan Trust Fund acquired a new position in shares of Viavi Solutions in the 1st quarter valued at approximately $3,048,000. Finally, Ma Investment Partnership LP raised its position in shares of Viavi Solutions by 150.0% in the 1st quarter. Ma Investment Partnership LP now owns 500,000 shares of the communications equipment provider's stock valued at $16,640,000 after purchasing an additional 300,000 shares in the last quarter. 95.54% of the stock is owned by institutional investors and hedge funds.

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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