Viavi Solutions (NASDAQ:VIAV) Shares Down 8.9% - Time to Sell?

Key Points

• Viavi Solutions shares fell 8.9% to about $32.24, with trading volume down 94% from its average. The stock is below both its 50-day and 200-day moving averages.
• Analyst sentiment remains broadly positive despite the decline: six analysts rate the stock Buy, two Hold, and one Sell, producing a “Moderate Buy” consensus and an average price target of $55.43.
• The company exceeded quarterly expectations, reporting $0.34 in EPS versus $0.30 expected and $443.1 million in revenue, up 52.5% year over year. However, insiders sold nearly 200,000 shares worth about $8.0 million over the past three months.

Viavi Solutions Inc. (NASDAQ:VIAV - Get Free Report)'s share price was down 8.9% on Thursday. The company traded as low as $32.28 and last traded at $32.2410. Approximately 332,426 shares changed hands during trading, a decline of 94% from the average daily volume of 5,965,416 shares. The stock had previously closed at $35.39.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on VIAV. Weiss Ratings lowered Viavi Solutions from a "sell (d+)" rating to a "sell (d)" rating in a research report on Tuesday, September 8th. 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 cut their target price on shares of Viavi Solutions from $60.00 to $44.00 and set a "neutral" rating for the company in a research note on Thursday, August 6th. Stifel Nicolaus set a $65.00 price target on Viavi Solutions in a report on Wednesday, September 23rd. Finally, B. Riley Financial cut their price objective on Viavi Solutions from $63.00 to $60.00 and set a "buy" rating for the company in a research report on Thursday, August 6th. Six analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Viavi Solutions currently has a consensus rating of "Moderate Buy" and an average price target of $55.43.

Viavi Solutions Price Performance

The stock's fifty day moving average price is $38.90 and its 200-day moving average price is $43.00. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.85 and a quick ratio of 1.62. The firm has a market cap of $7.45 billion, a price-to-earnings ratio of -201.99 and a beta of 1.21.

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

Insiders Place Their Bets

In related news, EVP Ilan Daskal sold 56,290 shares of the stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $36.29, for a total value of $2,042,764.10. Following the completion of the sale, the executive vice president directly owned 10,132 shares of the company's stock, valued at approximately $367,690.28. This represents a 84.75% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Laura A. Black sold 71,000 shares of the firm's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $46.12, for a total value of $3,274,520.00. Following the sale, the director owned 71,497 shares of the company's stock, valued at $3,297,441.64. The trade was a 49.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 199,694 shares of company stock worth $7,976,233. 1.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Viavi Solutions

A number of large investors have recently made changes to their positions in the business. WPG Advisers LLC boosted its holdings 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 purchasing an additional 380 shares during the period. Silvant Capital Management LLC acquired a new position in Viavi Solutions in the 2nd quarter valued at approximately $33,000. Fortitude Family Office LLC increased its stake in Viavi Solutions by 413.3% in the 3rd quarter. Fortitude Family Office LLC now owns 811 shares of the communications equipment provider's stock valued at $34,000 after buying an additional 653 shares during the period. Persistent Asset Partners Ltd acquired a new position in Viavi Solutions in the 2nd quarter valued at approximately $38,000. Finally, Carolina Wealth Advisors LLC lifted 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 worth $41,000 after buying an additional 387 shares in the last quarter. Institutional investors and hedge funds own 95.54% of the company's stock.

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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