Here is What Hedge Funds Think About Viavi Solutions Inc (VIAV)

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because only one of the 700+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Carlson Capital).

Let’s now review hedge fund activity in other stocks similar to Viavi Solutions Inc (NASDAQ:VIAV). These stocks are Exelixis, Inc. (NASDAQ:EXEL), Archrock Inc. (NYSE:AROC), KB Home (NYSE:KBH), and Vonage Holdings Corp. (NYSE:VG). This group of stocks’ market valuations resemble VIAV’s market valuation.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $221 million. That figure was $229 million in VIAV’s case. Archrock Inc. (NYSE:AROC) is the most popular stock in this table. On the other hand Exelixis, Inc. (NASDAQ:EXEL) is the least popular one with only 12 bullish hedge fund positions. Viavi Solutions Inc (NASDAQ:VIAV) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard EXH might be a better candidate to consider a long position.