Viavi Solutions (NASDAQ:VIAV) Shares Gap Down – Here’s Why

Shares of Viavi Solutions Inc. (NASDAQ:VIAV) 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.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on VIAV shares. 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. Weiss Ratings downgraded shares of Viavi Solutions from a “sell (d+)” rating to a “sell (d)” rating in a research report on Tuesday, August 11th. Rosenblatt Securities restated a “buy” rating and set a $70.00 price target on shares of Viavi Solutions in a research note on Thursday, August 6th. Wall Street Zen raised shares of Viavi Solutions from a “buy” rating to a “strong-buy” rating in a report on Saturday. Finally, B. Riley Financial decreased their price target on shares of Viavi Solutions from $63.00 to $60.00 and set a “buy” rating for the company in a report on Thursday, August 6th. One equities research 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 given a Sell rating to the stock. Based on data from MarketBeat, Viavi Solutions has an average rating of “Moderate Buy” and an average price target of $49.88.

Viavi Solutions Stock Performance

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

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

Insider Activity at Viavi Solutions

In other news, EVP Paul Mcnab sold 1,595 shares of the stock in a transaction on Monday, August 10th. The shares were sold at an average price of $37.37, for a total value of $59,605.15. Following the sale, the executive vice president owned 13,876 shares in the company, valued at $518,546.12. This represents a 10.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 1.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Royal Bank of Canada grew its position in Viavi Solutions by 11.5% during the 1st quarter. Royal Bank of Canada now owns 183,320 shares of the communications equipment provider’s stock worth $2,051,000 after purchasing an additional 18,910 shares during the period. AQR Capital Management LLC boosted its stake in shares of Viavi Solutions by 110.5% in the first quarter. AQR Capital Management LLC now owns 33,663 shares of the communications equipment provider’s stock worth $377,000 after buying an additional 17,673 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Viavi Solutions by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 131,061 shares of the communications equipment provider’s stock worth $1,467,000 after buying an additional 5,775 shares during the last quarter. Millennium Management LLC grew its holdings in Viavi Solutions by 205.4% during the first quarter. Millennium Management LLC now owns 476,767 shares of the communications equipment provider’s stock worth $5,335,000 after acquiring an additional 320,662 shares during the period. Finally, United Services Automobile Association acquired a new stake in Viavi Solutions during the first quarter worth about $165,000. 95.54% of the stock is currently owned by institutional investors and hedge funds.

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.