Viavi Solutions (NASDAQ:VIAV) Shares Gap Down - Here's Why

Key Points

• Viavi Solutions shares fell sharply: The stock opened at $43.30 versus a prior close of $46.26 and last traded near $42.30, representing an approximately 12% decline.
• Analyst sentiment remains moderately bullish: Viavi has an average “Moderate Buy” rating and a consensus price target of $49.88, although UBS and Needham recently lowered their targets.
• Recent financial results exceeded expectations: Quarterly earnings were $0.34 per share versus estimates of $0.30, while revenue rose 52.5% year over year to $443.1 million. The company guided for first-quarter 2027 EPS of $0.40–$0.42.

Viavi Solutions Inc. (NASDAQ:VIAV - Get Free Report)'s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $46.26, but opened at $43.30. Viavi Solutions shares last traded at $42.2990, with a volume of 356,777 shares traded.

Wall Street Analyst Weigh In

VIAV has been the subject of a number of research reports. Zacks Research upgraded Viavi Solutions from a "hold" rating to a "strong-buy" rating in a report on Thursday, August 13th. Susquehanna raised their price objective on Viavi Solutions from $65.00 to $66.00 and gave the stock a "positive" rating in a report on Wednesday, July 1st. Needham & Company LLC decreased their target price on Viavi Solutions from $68.00 to $60.00 and set a "buy" rating for the company in a research report on Thursday, August 6th. UBS Group lowered their target price on Viavi Solutions from $60.00 to $44.00 and set a "neutral" rating for the company in a report on Thursday, August 6th. Finally, Weiss Ratings downgraded Viavi Solutions from a "sell (d+)" rating to a "sell (d)" rating in a research report on Tuesday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Viavi Solutions currently has an average rating of "Moderate Buy" and an average target price of $49.88.

Viavi Solutions Trading Down 12.0%

The company has a current ratio of 1.85, a quick ratio of 1.62 and a debt-to-equity ratio of 0.27. The stock has a market capitalization of $9.52 billion, a P/E ratio of -271.62 and a beta of 1.22. The company has a 50-day moving average price of $43.18 and a 200 day moving average price of $40.05.

Viavi Solutions (NASDAQ:VIAV - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The communications equipment provider reported $0.34 earnings per share for the quarter, beating analysts' consensus estimates of $0.30 by $0.04. Viavi Solutions had a positive return on equity of 19.60% and a negative net margin of 2.00%.The company had revenue of $443.10 million for the quarter, compared to the consensus estimate of $432.62 million. During the same quarter last year, the company earned $0.13 earnings per share. The firm's revenue for the quarter was up 52.5% compared to the same quarter last year. Viavi Solutions has set its Q1 2027 guidance at 0.400-0.420 EPS. On average, research analysts forecast that Viavi Solutions Inc. will post 1.32 earnings per share for the current fiscal year.

Insider Activity

In related news, EVP Paul Mcnab sold 1,595 shares of the business's stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $37.37, for a total transaction of $59,605.15. Following the completion of the transaction, the executive vice president owned 13,876 shares in the company, valued at $518,546.12. The trade was a 10.31% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 1.80% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Viavi Solutions

Several institutional investors have recently bought and sold shares of the company. BlackRock Inc. acquired a new position in shares of Viavi Solutions during the second quarter worth $1,228,529,000. Capital World Investors boosted its position in shares of Viavi Solutions by 4.4% in the 4th quarter. Capital World Investors now owns 15,620,410 shares of the communications equipment provider's stock worth $278,356,000 after purchasing an additional 664,956 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in Viavi Solutions by 3.5% during the 3rd quarter. Dimensional Fund Advisors LP now owns 6,846,226 shares of the communications equipment provider's stock worth $86,875,000 after buying an additional 231,570 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its stake in Viavi Solutions by 0.5% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 6,673,145 shares of the communications equipment provider's stock worth $118,915,000 after buying an additional 33,463 shares during the last quarter. Finally, Geode Capital Management LLC increased its position in Viavi Solutions by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 5,351,211 shares of the communications equipment provider's stock valued at $95,373,000 after buying an additional 20,776 shares in the last quarter. 95.54% of the stock is currently owned by institutional investors and hedge funds.

About Viavi Solutions

Viavi Solutions Inc is a provider of network test, monitoring and assurance solutions for communications service providers, cable operators, enterprises and government agencies. The company offers an extensive portfolio of fiber optic and copper cable test and measurement instruments, wireless network testing equipment and network performance monitoring software. Its products are designed to support the deployment, maintenance and optimization of high-speed broadband, 5G wireless, data center and enterprise networks.

Viavi's product offerings are organized into two primary segments: Network & Service Enablement and Optical Security & Performance.

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