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

Key Points

• Viavi Solutions Inc. shares experienced a significant decline, opening at $10.36 after closing at $11.03, with a trading volume of over 6 million shares.
• Several analysts have upgraded Viavi Solutions' ratings, with Susquehanna setting a price target of $15.00 and Wall Street Zen moving from "buy" to "strong buy".
• The company reported a net margin of 3.21% for its latest quarterly earnings, surpassing analyst estimates with earnings per share of $0.13 on revenue of $290.50 million.

Viavi Solutions Inc. (NASDAQ:VIAV - Get Free Report) gapped down before the market opened on Thursday . The stock had previously closed at $11.03, but opened at $10.36. Viavi Solutions shares last traded at $10.39, with a volume of 6,124,465 shares.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. UBS Group lifted their price objective on shares of Viavi Solutions from $11.00 to $12.00 and gave the company a "neutral" rating in a report on Friday, August 8th. 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. B. Riley upped their price objective on shares of Viavi Solutions from $11.00 to $12.00 and gave the company a "neutral" rating in a report on Friday, August 8th. Needham & Company LLC reaffirmed a "buy" rating and set a $15.00 target price on shares of Viavi Solutions in a research note on Friday, May 2nd. Finally, Morgan Stanley increased their price target on shares of Viavi Solutions from $8.60 to $9.30 and gave the company an "underweight" rating in a research note on Monday, August 11th. Six equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $13.31.

Viavi Solutions Price Performance

The company has a current ratio of 1.50, a quick ratio of 1.30 and a debt-to-equity ratio of 0.51. The company's fifty day moving average is $10.12 and its two-hundred day moving average is $10.38. The stock has a market cap of $2.38 billion, a price-to-earnings ratio of 66.63 and a beta of 0.87.

Viavi Solutions (NASDAQ:VIAV - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The communications equipment provider reported $0.13 earnings per share (EPS) for the quarter, beating 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 previous year, the business earned $0.08 EPS. The company's quarterly revenue was up 15.3% compared to the same quarter last year. Viavi Solutions has set its Q1 2026 guidance at 0.130-0.14 EPS. As a group, research analysts predict that Viavi Solutions Inc. will post 0.26 earnings per share for the current year.

Insiders Place Their Bets

In other Viavi Solutions news, Director Richard Belluzzo sold 8,385 shares of the stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $10.02, for a total transaction of $84,017.70. Following the sale, the director directly owned 242,311 shares in the company, valued at $2,427,956.22. This represents a 3.34% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 1.52% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Viavi Solutions

Several large investors have recently bought and sold shares of VIAV. KBC Group NV boosted its position in shares of Viavi Solutions by 38.1% during the 1st quarter. KBC Group NV now owns 12,967 shares of the communications equipment provider's stock worth $145,000 after acquiring an additional 3,579 shares in the last quarter. Wakefield Asset Management LLLP acquired a new position in Viavi Solutions in the first quarter valued at approximately $1,098,000. Principal Financial Group Inc. raised its holdings in Viavi Solutions by 2.8% during the first quarter. Principal Financial Group Inc. now owns 1,106,034 shares of the communications equipment provider's stock worth $12,377,000 after purchasing an additional 30,359 shares in the last quarter. GAMMA Investing LLC raised its holdings in Viavi Solutions by 1,429.1% during the first quarter. GAMMA Investing LLC now owns 39,008 shares of the communications equipment provider's stock worth $436,000 after purchasing an additional 36,457 shares in the last quarter. Finally, Marshall Wace LLP boosted its holdings in shares of Viavi Solutions by 201.2% in the 4th quarter. Marshall Wace LLP now owns 49,200 shares of the communications equipment provider's stock valued at $497,000 after buying an additional 32,867 shares in the last quarter. Hedge funds and other institutional investors own 95.54% of the company's stock.

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.