Viavi Solutions CEO Offloads $1.3M in Stock Holdings: What's the Real Story?

The Insider Transaction

Oleg Khaykin, President and CEO of Viavi Solutions (NASDAQ: VIAV), orchestrated the sale of 73,442 shares across two trading days in early December 2025, generating approximately $1.3 million in proceeds. According to SEC Form 4 filings, these transactions occurred on December 3-4, 2025, at a weighted average price of $17.36 per share.

Following the disposition, Khaykin maintained direct ownership of 1,921,191 shares, valued at roughly $33.6 million based on the December 4 closing price of $17.50. His remaining stake represents approximately 0.86% of the company’s outstanding shares. When factoring in indirect holdings through his spouse, the CEO retains approximately 80,476 additional shares.

Understanding the Transaction Scale

The 73,442 shares liquidated represented 3.68% of Khaykin’s direct holdings immediately prior to the sale. Contextualizing this move: it was considerably larger than his historical median transaction of 7,872 shares observed between December 2022 and February 2024, but somewhat smaller than a 154,646-share disposition completed just one day prior on December 2.

Since August 2024, Khaykin’s median sell transaction has averaged 114,044 shares, or roughly 5.44% of his holdings at those times. The December 3-4 dispositions align with this pattern and don’t represent an unusual acceleration in insider selling.

Market Timing and Stock Performance

The sales merit closer examination within their market context. Viavi Solutions stock had delivered a one-year total return of 68.4% as of the transaction date. More significantly, these share sales occurred immediately before the stock reached a 52-week peak of $18.55 on December 5, 2025—just one trading day after the final transaction.

This timing suggests Khaykin capitalized on strong momentum rather than signaling concern about the company’s trajectory. When insiders sell near price peaks, it typically reflects profit-taking on appreciated positions rather than loss of confidence.

The Company’s Operational Momentum

Viavi Solutions operates a diversified business across three core segments: Network Enablement (NE), Service Enablement (SE), and Optical Security and Performance Products (OSP). The company generated $1.15 billion in trailing twelve-month revenue and currently maintains a market capitalization of $3.91 billion.

Recent financial performance has been robust. For fiscal year 2025 (ended June 28), the company reported $1.08 billion in revenue, representing 8% year-over-year growth. Momentum accelerated into the following quarter, with fiscal Q1 delivering 26% sales growth to $299.1 million, driven primarily by elevated demand from data center, aerospace, and defense sectors.

The data center strength reflects broader industry trends: explosive growth in AI infrastructure buildout is creating substantial demand for network testing, monitoring, and security solutions. Viavi Solutions is well-positioned to capture this expansion given its established relationships with communications service providers, equipment manufacturers, and enterprise customers worldwide.

Investment Perspective: Buy or Avoid?

The CEO’s stock disposition doesn’t constitute a negative signal. Khaykin’s remaining 1.9 million direct shares demonstrate sustained conviction in the company, and the timing of his sales appears opportunistic rather than precautionary.

However, valuation warrants consideration. With a price-to-earnings ratio exceeding 200, Viavi Solutions reflects premium pricing relative to near-term earnings visibility. While the company’s growth trajectory in AI-driven data center infrastructure remains compelling, current valuations may overestimate near-term expansion.

Potential investors should await a pullback in share price before initiating positions. The company’s long-term fundamentals appear sound, but entry points at elevated multiples carry elevated risk. Monitor the stock for dips toward the $15-16 range before committing capital.