Viavi Solutions Inc. (NASDAQ:VIAV) Sees Significant Growth in Short Interest

Key Points

• Viavi Solutions Inc. experienced a **34.7% increase** in short interest in August, with a total of **10,590,000 shares** shorted, indicating growing bearish sentiment among investors.
• The company reported earnings of **$0.13 per share**, surpassing analysts' expectations of **$0.12**, and recorded a **15.3% year-over-year revenue growth** of **$290.50 million** for the quarter ending August 7th.
• Several analysts have upgraded Viavi's stock rating, with **Susquehanna raising its target price to $15.00** and **Morgan Stanley** moving it from **'underweight' to 'equal weight.'**

Viavi Solutions Inc. (NASDAQ:VIAV - Get Free Report) was the target of a significant growth in short interest in the month of August. As of August 15th, there was short interest totaling 10,590,000 shares, a growth of 34.7% from the July 31st total of 7,860,000 shares. Based on an average daily volume of 2,500,000 shares, the short-interest ratio is currently 4.2 days. Currently, 4.8% of the company's shares are sold short. Currently, 4.8% of the company's shares are sold short. Based on an average daily volume of 2,500,000 shares, the short-interest ratio is currently 4.2 days.

Analysts Set New Price Targets

Several brokerages recently issued reports on VIAV. B. Riley lifted their target price on Viavi Solutions from $11.00 to $12.00 and gave the company a "neutral" rating in a research report on Friday, August 8th. UBS Group upped their price target on Viavi Solutions from $11.00 to $12.00 and gave the stock a "neutral" rating in a report on Friday, August 8th. Morgan Stanley upgraded Viavi Solutions from an "underweight" rating to an "equal weight" rating and set a $11.00 price target for the company in a report on Tuesday, September 2nd. Susquehanna upgraded Viavi Solutions from a "neutral" rating to a "positive" rating and set a $15.00 price target on the stock in a report on Friday, August 8th. Finally, Rosenblatt Securities reiterated a "buy" rating and set a $13.50 price target on shares of Viavi Solutions in a report on Friday, June 20th. Six analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, Viavi Solutions currently has an average rating of "Moderate Buy" and an average price target of $13.50.

Viavi Solutions Stock Performance

Shares of VIAV traded down $0.23 during mid-day trading on Friday, hitting $12.03. The stock had a trading volume of 2,543,987 shares, compared to its average volume of 3,278,310. The firm has a market cap of $2.69 billion, a P/E ratio of 75.19 and a beta of 0.91. The business has a fifty day moving average price of $10.73 and a 200-day moving average price of $10.30. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.50 and a quick ratio of 1.30. Viavi Solutions has a 52 week low of $8.10 and a 52 week high of $12.91.

Viavi Solutions (NASDAQ:VIAV - Get Free Report) last posted its earnings results on Thursday, August 7th. The communications equipment provider reported $0.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.12 by $0.01. Viavi Solutions had a return on equity of 8.02% and a net margin of 3.21%.The firm had revenue of $290.50 million for the quarter, compared to the consensus estimate of $285.19 million. During the same quarter in the prior year, the business posted $0.08 earnings per share. The business's quarterly revenue was up 15.3% on a year-over-year basis. Viavi Solutions has set its Q1 2026 guidance at 0.130-0.14 EPS. On average, equities research analysts expect that Viavi Solutions will post 0.26 EPS for the current year.

Insider Buying and Selling

In related news, SVP Luke M. Scrivanich sold 11,873 shares of the firm's stock in a transaction that occurred on Friday, August 29th. The stock was sold at an average price of $11.18, for a total transaction of $132,740.14. Following the completion of the sale, the senior vice president owned 66,836 shares of the company's stock, valued at $747,226.48. This trade represents a 15.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Richard Belluzzo sold 8,385 shares of the firm's stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $11.34, for a total value of $95,085.90. Following the sale, the director directly owned 225,541 shares of the company's stock, valued at $2,557,634.94. This represents a 3.58% decrease in their position. The disclosure for this sale can be found here. Insiders sold 54,873 shares of company stock valued at $605,095 over the last 90 days. Company insiders own 1.52% of the company's stock.

Institutional Trading of Viavi Solutions

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Family Legacy Financial Solutions LLC bought a new stake in shares of Viavi Solutions during the 2nd quarter valued at $43,000. USA Financial Formulas bought a new stake in shares of Viavi Solutions during the 1st quarter valued at $53,000. AlphaQuest LLC bought a new stake in shares of Viavi Solutions during the 1st quarter valued at $55,000. First Horizon Advisors Inc. raised its stake in shares of Viavi Solutions by 29.1% during the 1st quarter. First Horizon Advisors Inc. now owns 5,046 shares of the communications equipment provider's stock valued at $56,000 after purchasing an additional 1,138 shares during the period. Finally, Quarry LP grew its position in Viavi Solutions by 481.2% during the first quarter. Quarry LP now owns 9,450 shares of the communications equipment provider's stock worth $106,000 after buying an additional 7,824 shares in the last quarter. 95.54% of the stock is currently owned by institutional investors.

About Viavi Solutions

Viavi Solutions, Inc engages in the provision of network test, monitoring, and assurance solutions for communications service providers, enterprises, network equipment manufacturers, government and avionics. It operates through the following segments: Network Enablement, Service Enablement, and Optical Security and Performance.