Insider Sales Reveal Viavi’s Strategic Rebalancing—What Investors Should Watch

Insider Selling Signals a Mixed Message for Viavi Solutions

On February 2, 2026, Senior Vice‑President Gary Staley executed two separate divestitures of Viavi Solutions’ common stock. The first transaction involved the sale of 22,690 shares at an average price of $25.85, slightly below the closing price of $25.98 that day. The second sale, disclosed in the same Form 4 filing, comprised an additional 17,138 shares, bringing Staley’s post‑transaction holdings to 203,552 shares.

With a market capitalization of $5.9 billion and a 52‑week high just under $26, Viavi’s shares are currently trading near their upper range. Staley’s combined sales represent a 1.6 % reduction of his total holdings. The trades were executed in a series of modest, incremental orders rather than a single block transaction, indicating a tactical rebalancing rather than an urgent liquidation.

Contextualizing the Sale within Broader Insider Activity

The February filing aligns with a broader insider‑selling trend observed over the past month. More than 30 % of Viavi’s executive team—including the Chief Financial Officer and the Executive Vice‑President of Marketing—have reduced their positions during this period. These sales, however, constitute only a modest fraction of each executive’s total holdings and are predominantly executed at or slightly below market price.

From a portfolio‑management perspective, the pattern suggests that insiders are likely rebalancing their personal portfolios or taking profits following a 42 % month‑over‑month gain in Viavi’s equity value. The market’s reaction appears more attuned to the narrative surrounding insider activity than to any discernible deterioration in the company’s fundamentals. Positive sentiment metrics—such as a social‑media sentiment score of +88 and a buzz index of 246 %—further indicate that investor focus remains on the narrative rather than on fundamental risk.

Analysis of Staley’s Trading Profile

A review of Staley’s Form 4 filings over the previous twelve months reveals a consistent pattern of short‑term trading. Over that period, he has purchased roughly 100 000 shares in nine discrete transactions, often at zero‑cost (Employee Stock Purchase Plan) or at prices well below the prevailing market rate. An equivalent volume has been sold in subsequent months.

His most sizable sale occurred on September 23, 2025, when he divested 28,217 shares of the company’s “market‑stock‑unit,” reducing his holdings from 234,295 to 211,464 shares. The average holding period for his transactions is approximately 90 days, underscoring a short‑term trading approach rather than a long‑term investment strategy.

Fundamental Outlook for Viavi Solutions

Despite the recent insider divestiture, Viavi’s underlying fundamentals remain robust. The company’s revenue stream is heavily weighted toward high‑value optical testing and consulting services—segments that are poised to benefit from the continued expansion of 5G and optical networks by telecommunications operators.

Nevertheless, Viavi’s valuation metrics raise cautionary flags. The negative price‑earnings ratio of ‑136.225 reflects a valuation considerably above earnings expectations, a scenario that may predispose the stock to a short‑term correction. Investors should monitor the equity for potential consolidation toward the 52‑week low of $8.10 and remain alert to forthcoming earnings releases or strategic initiatives that could justify the current price premium.

Transaction Summary