Viavi Solutions (NASDAQ:VIAV) Shares Up 6.9% - Should You Buy?

Key Points

• Viavi Solutions shares rose 6.9% to approximately $39.82, while trading volume was 85% below the average session volume.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $55.43, well above the current share price.
• The company beat quarterly expectations with EPS of $0.34 versus $0.30 and revenue of $443.1 million, up 52.5% year over year; however, insiders sold nearly 200,000 shares worth about $8.0 million during the last quarter.

Viavi Solutions Inc. (NASDAQ:VIAV - Get Free Report) shares rose 6.9% on Friday. The company traded as high as $40.85 and last traded at $39.8170. Approximately 913,306 shares were traded during trading, a decline of 85% from the average session volume of 6,010,965 shares. The stock had previously closed at $37.23.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the stock. Susquehanna raised their price objective on shares of Viavi Solutions from $65.00 to $66.00 and gave the company a "positive" rating in a research note on Wednesday, July 1st. Stifel Nicolaus set a $65.00 target price on shares of Viavi Solutions in a research report on Wednesday. Needham & Company LLC cut their price target on Viavi Solutions from $68.00 to $60.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. B. Riley Financial reduced their price target on Viavi Solutions from $63.00 to $60.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. Finally, Zacks Research raised Viavi Solutions from a "hold" rating to a "strong-buy" rating in a research note on Thursday, August 13th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Viavi Solutions has a consensus rating of "Moderate Buy" and an average price target of $55.43.

Viavi Solutions Stock Up 7.3%

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 company has a market capitalization of $9.85 billion, a price-to-earnings ratio of -265.29 and a beta of 1.22. The firm has a 50-day moving average price of $37.95 and a two-hundred day moving average price of $41.85.

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

Insider Buying and Selling at Viavi Solutions

In other news, EVP Paul McNab sold 11,032 shares of Viavi Solutions stock in a transaction that occurred 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 sale, the executive vice president directly owned 25,639 shares in the company, valued at $999,151.83. This trade represents a 30.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Laura Black sold 71,000 shares of the business's stock in a transaction on Monday, August 17th. The stock was sold at an average price of $46.12, for a total transaction of $3,274,520.00. Following the completion of the sale, the director directly owned 71,497 shares in the company, valued at approximately $3,297,441.64. This represents a 49.83% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 199,694 shares of company stock valued at $7,976,233 over the last quarter. Insiders own 1.80% of the company's stock.

Institutional Investors Weigh In On Viavi Solutions

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

About Viavi Solutions

Viavi Solutions Inc NASDAQ: VIAV develops test, measurement, and assurance technologies for communications networks and optical systems. Its products and software help telecommunications providers, network equipment manufacturers, data centers, government organizations, and other enterprises build, validate, monitor, and maintain wired and wireless networks.

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

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.