Viavi Solutions Inc. (VIAV) stock is nearly perfect except the valuation

The closing price of Viavi Solutions Inc. (NASDAQ: VIAV) was $10.41 for the day, up 1.46% from the previous closing price of $10.26. In other words, the price has increased by $+0.15 from its previous closing price. On the day, 1438526 shares were traded. VIAV stock price reached its highest trading level at $10.45 during the session, while it also had its lowest trading level at $10.10.

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Our analysis of VIAV’s different ratios will help us gain a deeper understanding of the company. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 4.89 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 22.80. For the most recent quarter (mrq), Quick Ratio is recorded 2.40 and its Current Ratio is at 2.80. In the meantime, Its Debt-to-Equity ratio is 1.02 whereas as Long-Term Debt/Eq ratio is at 0.92.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, Stifel on December 02, 2022, initiated with a Hold rating and assigned the stock a target price of $12.

On November 04, 2022, B. Riley Securities Downgraded its rating to Neutral which previously was Buy and also lowered its target price recommendation from $21 to $14.50.

On October 06, 2022, Rosenblatt started tracking the stock assigning a Buy rating and target price of $18.Rosenblatt initiated its Buy rating on October 06, 2022, with a $18 target price.

Insider Transactions:

Also, insider trades can serve as a great indicator of what management thinks about the future direction of a stock’s price. A recent insider transaction in this stock occurred on Feb 22 when Staley Gary W sold 13,636 shares for $11.02 per share. The transaction valued at 150,269 led to the insider holds 80,027 shares of the business.

Staley Gary W sold 13,453 shares of VIAV for $150,135 on Feb 16. The SVP Global Sales NSE now owns 93,663 shares after completing the transaction at $11.16 per share. On Feb 08, another insider, Staley Gary W, who serves as the SVP Global Sales NSE of the company, sold 13,216 shares for $11.31 each. As a result, the insider received 149,473 and left with 107,116 shares of the company.

Valuation Measures:

As of this moment, Viavi’s Price-to-Earnings (P/E) ratio for their current fiscal year is 31.36, and their Forward P/E ratio for the next fiscal year is 13.11. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 2.09. For the stock, the TTM Price-to-Sale (P/S) ratio is 1.90 while its Price-to-Book (P/B) ratio in mrq is 3.42.

Stock Price History:

Over the past 52 weeks, VIAV has reached a high of $16.69, while it has fallen to a 52-week low of $9.99. The 50-Day Moving Average of the stock is 11.00, while the 200-Day Moving Average is calculated to be 12.71.

Shares Statistics:

VIAV traded an average of 1.83M shares per day over the past three months and 2.52M shares per day over the past ten days. A total of 225.90M shares are outstanding, with a floating share count of 223.80M. Insiders hold about 1.10% of the company’s shares, while institutions hold 98.00% stake in the company. Shares short for VIAV as of Jan 12, 2023 were 5.68M with a Short Ratio of 5.71M, compared to 5.77M on Dec 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 2.51% and a Short% of Float of 3.53%.

Earnings Estimates

The firm’s stock currently is rated by 8 analysts. On average, analysts expect EPS of $0.11 for the current quarter, with a high estimate of $0.14 and a low estimate of $0.11, while EPS last year was $0.22. The consensus estimate for the next quarter is $0.14, with high estimates of $0.18 and low estimates of $0.11.

Analysts are recommending an EPS of between $0.65 and $0.59 for the fiscal current year, implying an average EPS of $0.62. EPS for the following year is $0.79, with 9 analysts recommending between $0.87 and $0.66.

Revenue Estimates

It is expected that $90B in revenue will be generated in the current quarter, according to 6 analysts. It ranges from a high estimate of $284.5M to a low estimate of $266M. As of the current estimate, Viavi Solutions Inc.’s year-ago sales were $315.5M, an estimated decrease of -14.60% from the year-ago figure. For the next quarter, 6 analysts are estimating revenue of $279.28M, a decrease of -16.70% less than the figure of -$14.60% in the same quarter last year. There is a high estimate of $292.3M for the next quarter, whereas the lowest estimate is $266.5M.

A total of 7 analysts have provided revenue estimates for VIAV’s current fiscal year. The highest revenue estimate was $1.15B, while the lowest revenue estimate was $1.13B, resulting in an average revenue estimate of $1.14B. In the same quarter a year ago, actual revenue was $1.29B, down -11.60% from the average estimate. Based on 7 analysts’ estimates, the company’s revenue will be $1.21B in the next fiscal year. The high estimate is $1.24B and the low estimate is $1.17B. The average revenue growth estimate for next year is up 6.10% from the average revenue estimate for this year.