Viavi Solutions Inc. (VIAV) looking to reclaim success with recent performance

Viavi Solutions Inc. (NASDAQ: VIAV) stock fell -1.09% on Friday to $13.64 against a previous-day closing price of $13.79. With 2.44 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.59 million shares. During the session, the Communication Equipment company that operates in wider Technology sector, reached to the highest price of $14.02 whereas the lowest price it dropped to was $13.64. The 52-week range on VIAV shows that it touched its highest point at $18.14 and its lowest point at $12.65 during that stretch. It currently has a 1-year price target of $18.62. Beta for the stock currently stands at 0.77.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of VIAV was down-trending over the past week, with a drop of -5.28%, but this was down by -10.91% over a month. Three-month performance surged to 4.28% while six-month performance fell -17.43%. The stock lost -11.31% in the past year, while it has lost -22.59% so far this year. A look at the trailing 12-month EPS for VIAV yields 0.06 with Next year EPS estimates of 1.03. For the next quarter, that number is 0.23. This implies an EPS growth rate of -76.50% for this year and 7.08% for next year. EPS is expected to grow by 15.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -37.00%.

Float and Shares Shorts:

At present, 227.30 million VIAV shares are outstanding with a float of 223.93 million shares on hand for trading. On Jul 14, 2022, short shares totaled 6.7 million, which was 2.94% higher than short shares on Jun 14, 2022. In addition to Mr. Oleg Khaykin as the firm’s Pres, CEO & Director, Mr. Hendrikus P. C. Derksen serves as its Exec. VP & CFO.


Institutional Ownership:

Through their ownership of 99.53% of VIAV’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 62.04% of VIAV, in contrast to 35.30% held by mutual funds. Shares owned by individuals account for 1.24%. As the largest shareholder in VIAV with 14.78% of the stake, BlackRock Fund Advisors holds 33,434,275 shares worth 33,434,275. A second-largest stockholder of VIAV, The Vanguard Group, Inc., holds 25,149,724 shares, controlling over 11.12% of the firm’s shares. Wellington Management Co. LLP is the third largest shareholder in VIAV, holding 20,222,921 shares or 8.94% stake. With a 7.45% stake in VIAV, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 16,844,324 shares are owned by the mutual fund manager. The American Funds Small Cap World Fu, which owns about 3.02% of VIAV stock, is the second-largest Mutual Fund holder. It holds 6,830,000 shares valued at 96.17 million. Vanguard Total Stock Market Index holds 2.99% of the stake in VIAV, owning 6,752,958 shares worth 95.08 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VIAV since 8 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With VIAV analysts setting a high price target of $22.00 and a low target of $15.10, the average target price over the next 12 months is $18.18. Based on these targets, VIAV could surge 61.29% to reach the target high and rise by 10.7% to reach the target low. Reaching the average price target will result in a growth of 33.28% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. VIAV will report FY 2023 earnings on 08/15/2023. Analysts have provided yearly estimates in a range of $0.97 being high and $0.90 being low. For VIAV, this leads to a yearly average estimate of $0.95. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Viavi Solutions Inc. surprised analysts by $0.01 when it reported $0.24 EPS against a consensus estimate of $0.23. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $0.24 and the low estimate is $0.22. The average estimate for the next quarter is thus $0.23.

Summary of Insider Activity:

Insiders traded VIAV stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 1,530 shares were sold. The number of buy transactions has increased to 44 while that of sell transactions has risen to 70 over the past year. The total number of shares bought during that period was 557,337 while 318,522 shares were sold.

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