Insider Activity Casts a Cloud Over Viavi Solutions Inc. (VIAV)

Despite closing -0.19 points lower on 14 March, Viavi Solutions Inc. (NASDAQ:VIAV) remains a key investment for many, but the stock is also a popular trading vehicle. Here’s how to trade it using charts and trading levels Friday. The shares dropped -1.53 percent at $12.23 with a heavy trade volume of 2.228 million shares. After opening the session at $12.41, the shares went as high as $12.41 and as low as $12.15, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $2.81 billion and now has 229.66 million shares outstanding. Viavi Solutions Inc. (VIAV) stock has gained 1.66 percent of market value in 21 trading days.

VIAV stock has a trailing 3-year beta of 0.96, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.17 a share in the trailing twelve months. The stock’s value has surged 21.69 percent year to date (YTD) against a rise of 18.51 percent in 12 month’s time. The company’s shares still trade -9.27 percent away from its 1-year high of $13.48 and 34.25 percent up from 52-week low of $9.11. The average consensus rating on the company is 2.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Viavi Solutions Inc. (VIAV) will probably climb 13.65 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $16-month high price target. This represents a whopping 30.83 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $14.25, which represents a return potential of 16.52 percent when compared to the closing price of the stock of $12.23 on Thursday, March 14. The lowest price target for the stock is $10.5 — slightly more than -14.15 percent from VIAV’s current share price.

History has shown that shares in Viavi Solutions Inc. have gone up on 7 different earnings reaction days and are predicted to add 0.05 percent when the company reports upcoming earnings.

The stock is currently hovering around the first support level of $12.12. Below this, the next support is placed in the zone of $12. Till the time, the VIAV stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 47.57 on daily chart, which may remain a cause for concern. If the price breaks below $12 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $12.38 mark may result into a pull-back move towards $12.52 level.

Shares of Viavi Solutions Inc. (VIAV) are trading at a P/E ratio of 13.56 times earnings reported for the past 12 months. The industry VIAV operates in has an average P/E of 17.47. Its P/E ratio went as low as 14.94X and as high as 34.35 over the 5-year span.Further, it is sporting a 2.65 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.6. 55.6 percent is the gross profit margin for Viavi Solutions Inc. and operating margin sits at 2.1 percent. Along with this, the net profit margin is -3.8 percent.