Shares of Viavi Solutions Inc. (NASDAQ: VIAV) experienced a significant increase of 6.8% during trading on Monday, following an upgrade from B. Riley. The investment firm raised its price target on the stock from $18.00 to $22.00, maintaining a “buy” rating. Viavi Solutions reached a high of $20.06 during the day, before closing at the same price.
Approximately 2,263,545 shares changed hands throughout the trading session, which marked a decline of 37% from the average daily volume of 3,601,513 shares. The stock had previously closed at $18.79 before the analyst upgrade.
Several other analysts have also recently issued ratings on Viavi Solutions. On December 29, Weiss Ratings reaffirmed a “sell (d)” rating for the shares. In contrast, Needham & Company LLC raised their target price from $16.00 to $20.00 and maintained a “buy” rating in a report released on October 30. On the same day, Rosenblatt Securities increased its price target from $15.00 to $19.00, also retaining a “buy” rating. Additionally, UBS Group adjusted their target price from $12.00 to $17.00, giving the stock a “neutral” rating.
In total, seven research analysts have rated Viavi Solutions with a “buy,” while two have assigned a “hold” rating and one has given a “sell” rating. As per data from MarketBeat.com, the consensus rating for the stock is “Moderate Buy,” with a consensus price target of $17.89.
Institutional Investment Trends
Recent trading activity has also seen an influx of interest from institutional investors and hedge funds. Notably, Penserra Capital Management LLC acquired a new stake in Viavi Solutions during the second quarter, valued at approximately $7.76 million. Oak Ridge Investments LLC also purchased a new stake worth about $3.86 million in the third quarter.
Moreover, Assenagon Asset Management S.A. increased its holdings in Viavi Solutions by 29.5% during the third quarter, now owning 974,906 shares valued at $12.37 million. Other institutional purchases included Robeco Institutional Asset Management B.V. and Inspire Investing LLC, which invested approximately $1.44 million and $1.1 million respectively. Currently, approximately 95.54% of Viavi Solutions’ stock is owned by institutional investors and hedge funds.
Financial Performance Insights
Viavi Solutions recently announced its quarterly earnings results on October 29, 2023. The company reported earnings per share (EPS) of $0.15, surpassing analysts’ consensus estimates of $0.13 by $0.02. The firm achieved a return on equity of 10.70% and a net margin of 1.33%. Revenue for the quarter was reported at $299.10 million, exceeding the consensus estimate of $294.35 million. This represents a remarkable 25.6% increase year-over-year, with the business having reported an EPS of $0.06 during the same period last year.
Looking ahead, Viavi Solutions has set its guidance for the second quarter of 2026 at an EPS between $0.180 and $0.200. Analysts predict that Viavi Solutions Inc. will post an EPS of $0.26 for the current fiscal year.
Viavi Solutions is recognized as a provider of network test, monitoring, and assurance solutions for various sectors, including communications service providers, cable operators, enterprises, and government agencies. The company’s extensive product portfolio includes fiber optic and copper cable testing instruments, wireless network testing equipment, and network performance monitoring software. These products are crucial for the deployment, maintenance, and optimization of high-speed broadband and 5G wireless networks, as well as data center and enterprise networks.
Viavi Solutions categorizes its offerings into two main segments: Network & Service Enablement and Optical Security & Performance.