Viavi Solutions (NASDAQ:VIAV) Stock Falls 7.9% – Time to Sell?

Viavi Solutions Inc. (NASDAQ:VIAV)’s share price dropped 7.9% during mid-day trading on Monday. The company traded as low as $41.91 and last traded at $41.8570. Approximately 2,613,994 shares were traded during mid-day trading, a decline of 57% from the average session volume of 6,011,645 shares. The stock had previously closed at $45.46.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on VIAV. Susquehanna lifted their price objective on shares of Viavi Solutions from $65.00 to $66.00 and gave the stock a “positive” rating in a research report on Wednesday, July 1st. Zacks Research raised Viavi Solutions from a “hold” rating to a “strong-buy” rating in a research report on Thursday, August 13th. UBS Group dropped their price target on shares of Viavi Solutions from $60.00 to $44.00 and set a “neutral” rating on the stock in a research note on Thursday, August 6th. Stifel Nicolaus set a $65.00 price objective on shares of Viavi Solutions in a report on Wednesday, September 23rd. Finally, Needham & Company LLC cut their price objective on shares of Viavi Solutions from $68.00 to $60.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Viavi Solutions has an average rating of “Moderate Buy” and a consensus price target of $55.43.

Viavi Solutions Stock Down 8.0%

The firm has a market cap of $10.28 billion, a price-to-earnings ratio of -278.69 and a beta of 1.21. The firm’s 50 day moving average price is $39.27 and its two-hundred day moving average price is $42.87. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.85 and a quick ratio of 1.62.

Viavi Solutions (NASDAQ:VIAV) last issued its quarterly earnings results on Wednesday, August 5th. The communications equipment provider reported $0.34 earnings per share (EPS) for the quarter, beating the consensus estimate 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 firm had revenue of $443.10 million for the quarter, compared to analysts’ expectations of $432.62 million. During the same quarter in the previous year, the firm posted $0.13 EPS. The firm’s revenue for the quarter was up 52.5% on a year-over-year basis. Viavi Solutions has set its Q1 2027 guidance at 0.400-0.420 EPS. As a group, sell-side analysts forecast that Viavi Solutions Inc. will post 1.42 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Laura Black sold 71,000 shares of the business’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $46.12, for a total transaction of $3,274,520.00. Following the transaction, the director directly owned 71,497 shares in the company, valued at $3,297,441.64. The trade was a 49.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, SVP Luke Scrivanich sold 35,866 shares of the stock in a transaction dated Wednesday, September 23rd. The stock was sold at an average price of $36.24, for a total transaction of $1,299,783.84. Following the transaction, the senior vice president directly owned 39,598 shares of the company’s stock, valued at $1,435,031.52. This represents a 47.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 199,694 shares of company stock worth $7,976,233 over the last quarter. Insiders own 1.80% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of VIAV. Silvant Capital Management LLC acquired a new stake in Viavi Solutions during the 2nd quarter worth approximately $33,000. WPG Advisers LLC grew its stake in Viavi Solutions by 96.2% during the first quarter. WPG Advisers LLC now owns 775 shares of the communications equipment provider’s stock worth $26,000 after buying an additional 380 shares during the period. Persistent Asset Partners Ltd purchased a new stake in Viavi Solutions during the second quarter worth approximately $38,000. Carolina Wealth Advisors LLC raised its stake in shares of Viavi Solutions by 83.2% in the 2nd quarter. Carolina Wealth Advisors LLC now owns 852 shares of the communications equipment provider’s stock valued at $41,000 after acquiring an additional 387 shares during the period. Finally, NewEdge Advisors LLC raised its stake in shares of Viavi Solutions by 309.4% in the 2nd quarter. NewEdge Advisors LLC now owns 1,130 shares of the communications equipment provider’s stock valued at $54,000 after acquiring an additional 854 shares during the period. Hedge funds and other institutional investors own 95.54% of the company’s stock.

Viavi Solutions Company Profile

Viavi Solutions Inc (NASDAQ: VIAV) develops test, measurement, and assurance technologies for communications networks, optical systems, and related industrial applications. Its solutions are used by network equipment manufacturers, communications service providers, contractors, and government organizations to install, validate, monitor, and maintain wired and wireless networks.

The company’s offerings include instruments and software for fiber-optic testing, network performance monitoring, service activation, troubleshooting, and assurance.