Viavi Solutions (NASDAQ:VIAV) Stock Jumps 7.3% - What's Next?

Key Points

• Viavi Solutions shares rose 7.3% to about $32.67, though trading volume was significantly below average. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans positive: six analysts rate the stock a Buy, two rate it Hold and one rates it Sell, producing a consensus “Moderate Buy” rating and a $55.43 target price.
• The company exceeded quarterly expectations with $0.34 in adjusted EPS versus a $0.30 estimate and $443.1 million in revenue, up 52.5% year over year. However, insiders sold nearly 200,000 shares in the latest quarter.

Shares of Viavi Solutions Inc. (NASDAQ:VIAV - Get Free Report) traded up 7.3% on Monday. The stock traded as high as $32.50 and last traded at $32.6730. Approximately 1,065,101 shares changed hands during mid-day trading, a decline of 82% from the average session volume of 5,971,610 shares. The stock had previously closed at $30.44.

Analyst Ratings Changes

Several research firms have recently issued reports on VIAV. Weiss Ratings cut shares of Viavi Solutions from a "sell (d+)" rating to a "sell (d)" rating in a report on Tuesday, September 8th. UBS Group dropped their target price on Viavi Solutions from $60.00 to $44.00 and set a "neutral" rating on the stock in a report on Thursday, August 6th. Zacks Research lowered shares of Viavi Solutions from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 12th. Stifel Nicolaus set a $65.00 target price on Viavi Solutions in a research report on Wednesday, September 23rd. Finally, Rosenblatt Securities reiterated a "buy" rating and set a $70.00 price objective on shares of Viavi Solutions in a research report on Wednesday, September 23rd. Six analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $55.43.

Viavi Solutions Trading Up 7.9%

The business has a 50-day moving average of $38.39 and a 200-day moving average of $42.91. The company has a quick ratio of 1.62, a current ratio of 1.85 and a debt-to-equity ratio of 0.27. The stock has a market cap of $8.07 billion, a price-to-earnings ratio of -218.08 and a beta of 1.21.

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

Insider Buying and Selling

In other 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 transaction of $2,042,764.10. Following the transaction, the executive vice president 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 SEC, which is accessible through this link. Also, SVP Luke Scrivanich sold 35,866 shares of the firm'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 value of $1,299,783.84. Following the completion of the transaction, the senior vice president directly owned 39,598 shares in the company, valued at $1,435,031.52. The trade was a 47.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 199,694 shares of company stock worth $7,976,233. Insiders own 1.20% of the company's stock.

Institutional Trading of Viavi Solutions

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