Lumentum (NASDAQ:LITE) Now Covered by Analysts at Sanford C. Bernstein

Key Points

• Sanford C. Bernstein initiated coverage of Lumentum with an “outperform” rating and a $1,220 price target, implying roughly 25% upside from the reported share price.
• Lumentum shares rose 5.7% to open at $973.49, while the stock’s analyst consensus remained “Moderate Buy” with an average price target of $1,073.25.
• The company reported strong quarterly results, with adjusted EPS of $3.23 beating estimates and revenue rising 109.3% year over year to $1.01 billion; institutional investors own approximately 94% of its shares.

Sanford C. Bernstein assumed coverage on shares of Lumentum (NASDAQ:LITE - Get Free Report) in a research note issued to investors on Wednesday, Marketbeat reports. The brokerage set an "outperform" rating and a $1,220.00 price target on the technology company's stock. Sanford C. Bernstein's price target would indicate a potential upside of 25.32% from the stock's current price.

LITE has been the topic of several other research reports. Bank of America cut their target price on Lumentum from $1,100.00 to $1,000.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 12th. Morgan Stanley lifted their target price on Lumentum from $900.00 to $1,000.00 and gave the stock an "equal weight" rating in a report on Wednesday, August 12th. UBS Group set a $820.00 price target on Lumentum in a research note on Wednesday, August 12th. Deutsche Bank Aktiengesellschaft started coverage on shares of Lumentum in a research report on Monday, August 31st. They set a "buy" rating and a $1,200.00 price objective for the company. Finally, Raymond James Financial reiterated an "outperform" rating and issued a $1,036.00 price objective on shares of Lumentum in a research note on Wednesday, August 12th. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,073.25.

Lumentum Trading Up 5.7%

LITE opened at $973.49 on Wednesday. Lumentum has a twelve month low of $147.81 and a twelve month high of $1,085.68. The company has a fifty day moving average of $867.87 and a 200-day moving average of $848.63. The stock has a market cap of $87.32 billion, a PE ratio of -11.84 and a beta of 1.53. The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE - Get Free Report) last released its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.97 by $0.26. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The business had revenue of $1.01 billion for the quarter, compared to analyst estimates of $987.70 million. During the same quarter in the previous year, the business earned $0.88 earnings per share. Lumentum's revenue for the quarter was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. On average, sell-side analysts predict that Lumentum will post 19.78 EPS for the current year.

Insider Transactions at Lumentum

In other Lumentum news, insider Yuen Wupen sold 1,500 shares of the stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $827.82, for a total value of $1,241,730.00. Following the transaction, the insider owned 100,434 shares in the company, valued at approximately $83,141,273.88. This represents a 1.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Vincent Retort sold 38,663 shares of the business's stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $852.59, for a total value of $32,963,687.17. Following the sale, the insider owned 78,440 shares of the company's stock, valued at approximately $66,877,159.60. This represents a 33.02% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 69,147 shares of company stock valued at $59,481,846 in the last 90 days. Corporate insiders own 0.43% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Jupiter Topco LLC acquired a new position in shares of Lumentum during the second quarter valued at about $1,621,396,000. Arrowstreet Capital Limited Partnership raised its holdings in shares of Lumentum by 18.7% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company's stock worth $683,661,000 after acquiring an additional 291,591 shares during the last quarter. Amundi lifted its position in Lumentum by 188.7% in the 2nd quarter. Amundi now owns 658,427 shares of the technology company's stock valued at $564,970,000 after acquiring an additional 430,355 shares in the last quarter. WT Asset Management Ltd bought a new position in Lumentum in the 2nd quarter valued at about $494,688,000. Finally, Situational Awareness LP boosted its stake in Lumentum by 210.9% during the 4th quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company's stock valued at $478,577,000 after purchasing an additional 880,800 shares during the last quarter. Institutional investors and hedge funds own 94.05% of the company's stock.

About Lumentum

Lumentum Holdings Inc is a photonics and optical technology company that develops and manufactures products used to transmit, process and manage light. Its solutions support communications networks, data centers, cloud computing infrastructure, industrial applications, and other technology markets that rely on high-speed optical connectivity and precision lasers.

The company's product portfolio includes optical components and modules for telecommunications and networking, lasers and laser systems, optical amplifiers, wavelength-management products, and photonic subsystems.

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