Viavi Solutions (NASDAQ:VIAV) Trading Down 8.3% - Here's Why

Key Points

• Viavi Solutions shares fell 8.3% on Thursday, trading as low as $48.24 after closing at $52.42, though volume was far below normal at 727,035 shares.
• Recent analyst sentiment remains generally positive: several firms lifted price targets, and the stock now carries a Moderate Buy consensus with an average target price of $39.25.
• The company’s latest earnings beat expectations, with $0.27 EPS and revenue of $406.8 million, while insiders have been selling shares and sold 450,369 shares over the past three months.

Shares of Viavi Solutions Inc. (NASDAQ:VIAV - Get Free Report) traded down 8.3% during trading on Thursday . The company traded as low as $48.24 and last traded at $48.0560. 727,035 shares were traded during trading, a decline of 88% from the average session volume of 5,999,373 shares. The stock had previously closed at $52.42.

Wall Street Analyst Weigh In

A number of analysts have commented on the stock. Needham & Company LLC boosted their price target on shares of Viavi Solutions from $28.00 to $36.00 and gave the stock a "buy" rating in a research report on Monday, March 2nd. UBS Group increased their price target on Viavi Solutions from $25.00 to $60.00 and gave the company a "neutral" rating in a research note on Thursday, April 30th. Susquehanna increased their price target on Viavi Solutions from $25.00 to $65.00 and gave the company a "positive" rating in a research note on Thursday, April 30th. Weiss Ratings raised Viavi Solutions from a "sell (d-)" rating to a "hold (c-)" rating in a research note on Wednesday, May 13th. Finally, Rosenblatt Securities increased their price target on Viavi Solutions from $27.00 to $42.00 and gave the company a "buy" rating in a research note on Wednesday, March 18th. Six analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $39.25.

Viavi Solutions Price Performance

The company has a current ratio of 1.61, a quick ratio of 1.39 and a debt-to-equity ratio of 0.99. The business's fifty day moving average is $45.29 and its 200 day moving average is $30.52. The firm has a market capitalization of $12.06 billion, a P/E ratio of -214.17 and a beta of 1.18.

Viavi Solutions (NASDAQ:VIAV - Get Free Report) last released its earnings results on Wednesday, April 29th. The communications equipment provider reported $0.27 EPS for the quarter, topping analysts' consensus estimates of $0.24 by $0.03. Viavi Solutions had a negative net margin of 4.03% and a positive return on equity of 16.80%. The business had revenue of $406.80 million for the quarter, compared to the consensus estimate of $393.80 million. During the same period in the previous year, the firm earned $0.15 EPS. The business's revenue for the quarter was up 42.8% on a year-over-year basis. Viavi Solutions has set its Q4 2026 guidance at 0.290-0.310 EPS. As a group, analysts forecast that Viavi Solutions Inc. will post 0.73 EPS for the current year.

Insiders Place Their Bets

In related news, EVP Paul Mcnab sold 2,727 shares of the business's stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $54.96, for a total value of $149,875.92. Following the sale, the executive vice president directly owned 15,471 shares in the company, valued at $850,286.16. The trade was a 14.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, SVP Luke M. Scrivanich sold 10,693 shares of the business's stock in a transaction that occurred on Wednesday, May 6th. The stock was sold at an average price of $53.00, for a total transaction of $566,729.00. Following the completion of the sale, the senior vice president owned 39,287 shares in the company, valued at $2,082,211. The trade was a 21.39% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 450,369 shares of company stock worth $23,789,119. Company insiders own 1.80% of the company's stock.

Institutional Investors Weigh In On Viavi Solutions

Large investors have recently made changes to their positions in the company. WPG Advisers LLC raised its holdings in shares of Viavi Solutions by 96.2% during the first quarter. WPG Advisers LLC now owns 775 shares of the communications equipment provider's stock valued at $26,000 after acquiring an additional 380 shares during the period. State of Wyoming purchased a new stake in shares of Viavi Solutions in the fourth quarter valued at $34,000. Johnson Financial Group Inc. purchased a new stake in shares of Viavi Solutions in the third quarter valued at $44,000. Cedar Mountain Advisors LLC purchased a new stake in shares of Viavi Solutions in the first quarter valued at $50,000. Finally, Hantz Financial Services Inc. lifted its holdings in shares of Viavi Solutions by 86.2% in the fourth quarter. Hantz Financial Services Inc. now owns 2,845 shares of the communications equipment provider's stock valued at $51,000 after purchasing an additional 1,317 shares in the last quarter. Institutional investors and hedge funds own 95.54% of the company's stock.

Viavi Solutions Company Profile

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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