Stifel slashes price target on Viavi Solutions Inc. [VIAV] – find out why.

Viavi Solutions Inc. [NASDAQ: VIAV] slipped around -0.21 points on Thursday, while shares priced at $10.56 at the close of the session, down -1.95%. The company report on March 2, 2023 that VIAVI Announces Private Convertible Exchange and Subscription Transactions of $250 Million Principal Amount of 1.625% Senior Convertible Notes Due 2026.

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(NASDAQ: VIAV) Viavi Solutions Inc. (“VIAVI” or the “Company”) today announced that on March 1, 2023, it entered into privately negotiated exchange and/or subscription agreements with certain holders of its outstanding 1.00% Senior Convertible Notes due 2024 (the “2024 Notes”) and certain new investors pursuant to which VIAVI will issue $250 million aggregate principal amount of its 1.625% Senior Convertible Notes due 2026 (the “New Notes”) consisting of (a) approximately $132 million principal amount of New Notes in exchange for approximately $128 million principal amount of the 2024 Notes (the “Exchange Transactions”) and (b) approximately $118 million principal amount of New Notes for cash (the “Subscription Transactions”), in each case, pursuant to exemptions from registration under the Securities Act of 1933, as amended (the “Securities Act”), and the rules and regulations thereunder. Following the closing of the Exchange Transactions, approximately $96 million in aggregate principal amount of 2024 Notes will remain outstanding with terms unchanged. The Exchange Transactions and the Subscription Transactions are expected to close concurrently on or about March 6, 2023, subject to customary closing conditions.

Viavi Solutions Inc. stock is now 0.48% up from its year-to-date (YTD) trading value. VIAV Stock saw the intraday high of $10.642 and lowest of $10.40 per share. The company’s 52-week high price is 16.69, which means current price is +1.54% above from all time high which was touched on 02/03/23.

Compared to the average trading volume of 1.73M shares, VIAV reached a trading volume of 7639049 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Viavi Solutions Inc. [VIAV]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for VIAV shares is $13.97 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on VIAV stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Stifel have made an estimate for Viavi Solutions Inc. shares, keeping their opinion on the stock as Hold, with their previous recommendation back on December 02, 2022. While these analysts kept the previous recommendation, B. Riley Securities dropped their target price from $21 to $14.50. The new note on the price target was released on November 04, 2022, representing the official price target for Viavi Solutions Inc. stock. Previously, the target price had yet another raise to $18, while Rosenblatt analysts kept a Buy rating on VIAV stock.

The Average True Range (ATR) for Viavi Solutions Inc. is set at 0.29, with the Price to Sales ratio for VIAV stock in the period of the last 12 months amounting to 1.96. The Price to Book ratio for the last quarter was 3.47, with the Price to Cash per share for the same quarter was set at 2.10. Price to Free Cash Flow for VIAV in the course of the last twelve months was 23.46 with Quick ratio for the last quarter at 2.40.

How has VIAV stock performed recently?

Viavi Solutions Inc. [VIAV] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.52. With this latest performance, VIAV shares dropped by -6.55% in over the last four-week period, additionally sinking by -25.53% over the last 6 months – not to mention a drop of -34.04% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for VIAV stock in for the last two-week period is set at 36.32, with the RSI for the last a single of trading hit 30.75, and the three-weeks RSI is set at 39.98 for Viavi Solutions Inc. [VIAV]. The present Moving Average for the last 50 days of trading for this stock 10.97, while it was recorded at 10.76 for the last single week of trading, and 12.88 for the last 200 days.

Viavi Solutions Inc. [VIAV]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Viavi Solutions Inc. [VIAV] shares currently have an operating margin of +14.33 and a Gross Margin at +59.10. Viavi Solutions Inc.’s Net Margin is presently recorded at +1.20.

Return on Equity for this stock inclined to 2.14, with Return on Assets sitting at 0.82.

Viavi Solutions Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.40 and a Current Ratio set at 2.80.

Earnings analysis for Viavi Solutions Inc. [VIAV]

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for VIAV. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Viavi Solutions Inc. go to 15.00%.

Insider trade positions for Viavi Solutions Inc. [VIAV]

There are presently around $2,207 million, or 98.00% of VIAV stock, in the hands of institutional investors. The top three institutional holders of VIAV stocks are: BLACKROCK INC. with ownership of 36,626,880, which is approximately 0.927% of the company’s market cap and around 1.10% of the total institutional ownership; VANGUARD GROUP INC, holding 26,707,113 shares of the stock with an approximate value of $282.03 million in VIAV stocks shares; and WELLINGTON MANAGEMENT GROUP LLP, currently with $144.35 million in VIAV stock with ownership of nearly -2.064% of the company’s market capitalization.

Positions in Viavi Solutions Inc. stocks held by institutional investors increased at the end of Thursday and at the time of the Thursday reporting period, where 151 institutional holders increased their position in Viavi Solutions Inc. [NASDAQ:VIAV] by around 15,395,162 shares. Additionally, 159 investors decreased positions by around 17,342,568 shares, while 54 investors held positions by with 176,262,801 shares. The mentioned changes placed institutional holdings at 209,000,531 shares, according to the latest SEC report filing. VIAV stock had 51 new institutional investments in for a total of 2,483,783 shares, while 52 institutional investors sold positions of 4,480,936 shares during the same period.


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