Viavi Solutions (NASDAQ:VIAV) Shares Gap Down on Insider Selling

Viavi Solutions Inc. (NASDAQ:VIAV) gapped down before the market opened on Tuesday following insider selling activity. 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.

Specifically, Director Laura A. Black sold 71,000 shares of the firm’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $46.12, for a total transaction of $3,274,520.00. Following the transaction, the director owned 71,497 shares in the company, valued at approximately $3,297,441.64. This trade represents a 49.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link.

Analyst Upgrades and Downgrades

VIAV has been the topic of several recent research reports. Susquehanna increased their target price on shares of Viavi Solutions from $65.00 to $66.00 and gave the stock a “positive” rating in a report on Wednesday, July 1st. Stifel Nicolaus upped their price target on shares of Viavi Solutions from $60.00 to $65.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. Needham & Company LLC dropped their price objective on shares of Viavi Solutions from $68.00 to $60.00 and set a “buy” rating on the stock in a research note on Thursday, August 6th. Rosenblatt Securities reissued a “buy” rating and set a $70.00 price objective on shares of Viavi Solutions in a report on Wednesday. Finally, Weiss Ratings downgraded shares of Viavi Solutions from a “sell (d+)” rating to a “sell (d)” rating in a research note on Tuesday, August 11th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $49.88.

Viavi Solutions News Summary

Here are the key news stories impacting Viavi Solutions this week:

• Positive Sentiment: Rosenblatt Securities reaffirmed its Buy rating and maintained a $70 price target, implying substantial upside from recent trading levels. The firm’s view supports optimism about Viavi’s exposure to network testing, communications infrastructure and AI-related growth. Rosenblatt Securities rating report
• Positive Sentiment: Viavi’s latest quarterly results exceeded expectations, with earnings of $0.34 per share versus the $0.30 consensus estimate and revenue of $443.1 million versus forecasts of $432.6 million. Revenue increased 52.5% year over year, and management guided to first-quarter fiscal 2027 earnings of $0.40 to $0.42 per share.
• Positive Sentiment: Analyst sentiment remains favorable overall. Viavi has a “Moderate Buy” consensus rating and an average price target of $49.88, although several firms recently lowered their targets. Institutional investors also own approximately 95.5% of the company’s outstanding shares.
• Neutral Sentiment: Director Laura Black sold 71,000 shares for approximately $3.27 million at an average price of $46.12. She retained 71,497 shares, but the transaction reduced her direct ownership by 49.83%. The sale was disclosed in an SEC filing and may reflect personal portfolio management rather than a change in the company’s outlook. Laura Black insider sale
• Negative Sentiment: The insider transaction is likely weighing on sentiment because it was large relative to the director’s holdings and occurred near recent highs. The stock also remains volatile after a sharp rally, with a negative net margin and a valuation that is difficult to assess using its negative P/E ratio.

Viavi Solutions Stock Performance

The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.62 and a current ratio of 1.85. The stock has a market cap of $9.56 billion, a P/E ratio of -258.25 and a beta of 1.21. The firm’s 50 day moving average is $42.92 and its 200 day moving average is $40.30.

Viavi Solutions (NASDAQ:VIAV) last announced its earnings results on Wednesday, August 5th. The communications equipment provider reported $0.34 earnings per share for the quarter, beating the consensus estimate of $0.30 by $0.04. The company had revenue of $443.10 million during the quarter, compared to the consensus estimate of $432.62 million. Viavi Solutions had a negative net margin of 2.00% and a positive return on equity of 19.60%. Viavi Solutions’s revenue was up 52.5% compared to the same quarter last year. During the same period last year, the firm earned $0.13 earnings per share. Viavi Solutions has set its Q1 2027 guidance at 0.400-0.420 EPS. Analysts anticipate that Viavi Solutions Inc. will post 1.32 EPS for the current year.

Institutional Investors Weigh In On Viavi Solutions

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. WPG Advisers LLC increased 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 in the last quarter. Silvant Capital Management LLC acquired a new stake in Viavi Solutions in the 2nd quarter worth approximately $33,000. State of Wyoming purchased a new position in shares of Viavi Solutions in the fourth quarter worth $34,000. Persistent Asset Partners Ltd purchased a new position in shares of Viavi Solutions in the second quarter worth $38,000. Finally, Carolina Wealth Advisors LLC lifted its stake in shares of Viavi Solutions by 83.2% during the second quarter. Carolina Wealth Advisors LLC now owns 852 shares of the communications equipment provider’s stock worth $41,000 after buying an additional 387 shares during the period. 95.54% of the stock is currently owned by hedge funds and other institutional investors.

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.