Palantir a high-risk investment with ’a one-of-a-kind growth and margin model’
Richard Belluzzo, a director at Viavi Solutions Inc. (NASDAQ:VIAV), a $2 billion market cap technology company trading at a notably high P/E ratio of 454.5x, executed a sale of 8,385 shares of the company’s common stock on June 2, 2025. The shares were sold at a weighted average price of $9.03, totaling approximately $75,716. The transaction was part of a pre-arranged trading plan under Rule 10b5-1, established on February 4, 2025. Following this transaction, Belluzzo retains ownership of 250,696 shares. The sale was executed in multiple trades with prices ranging from $8.96 to $9.08. According to InvestingPro, the company maintains a "Fair" financial health score and expects to report its next earnings on August 7, 2025. For comprehensive insider trading analysis and more exclusive insights, including 7 additional ProTips, explore the detailed Pro Research Report available on InvestingPro.
In other recent news, Viavi Solutions reported its third-quarter fiscal 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.15, which was $0.03 higher than anticipated. The company also exceeded revenue forecasts, reporting $284.8 million compared to the expected $282.13 million. Despite these positive results, Viavi Solutions provided a fourth-quarter guidance that fell short of expectations, projecting an EPS of $0.10 to $0.13 and revenue between $278 million and $290 million, both below analyst estimates. This cautious outlook has contributed to a bearish sentiment among investors.
Analysts from Susquehanna maintained a neutral stance with a price target of $10, while Stifel and Rosenblatt Securities provided buy ratings with price targets of $13 and $13.50, respectively. The analysts acknowledged the company’s strong third-quarter performance but noted concerns over tariff-related shipment delays and costs affecting future revenue. Viavi Solutions highlighted robust year-over-year growth, with net revenue up 15.8% and significant improvements in operating margins. The company attributed its success to strong performances in its Network Enablement (NE) and Optical Security and Performance Products (OSP) segments.
The company also announced plans to acquire Spirent (LON:SPT)’s high-speed Ethernet and network security business lines, which they intend to finance with additional debt. Viavi Solutions remains optimistic about its growth prospects, particularly in the data center and aerospace markets, despite the challenges posed by tariffs. The company’s financial position includes $400.2 million in cash and short-term investments, with an operational cash flow of $7.8 million for the quarter.
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