Lumentum (NASDAQ:LITE) Stock Gets Price Target Trim from UBS Group

Key Points

• UBS cut its Lumentum price target from $960 to $686 and maintained a neutral rating; the revised target implies 17.13% upside from the prior close.
• Analyst sentiment overall remains more positive: MarketBeat reports a “Moderate Buy” consensus and an average price target of $1,053.17.
• Lumentum reported quarterly EPS of $4.57, beating estimates of $4.22, while revenue rose 136.5% year over year to $1.26 billion.

Lumentum (NASDAQ:LITE - Get Free Report) had its target price dropped by equities research analysts at UBS Group from $960.00 to $686.00 in a research report issued to clients and investors on Tuesday, Benzinga reports. The firm presently has a "neutral" rating on the technology company's stock. UBS Group's target price points to a potential upside of 17.13% from the stock's previous close.

LITE has been the subject of several other research reports. Wolfe Research restated an "outperform" rating on shares of Lumentum in a research note on Friday, August 21st. Evercore assumed coverage on shares of Lumentum in a report on Monday, August 31st. They issued an "outperform" rating and a $1,100.00 target price on the stock. Stifel Nicolaus set a $806.00 price target on shares of Lumentum in a research note on Monday, November 2nd. Rosenblatt Securities cut their price target on shares of Lumentum from $1,300.00 to $900.00 and set a "buy" rating for the company in a report on Tuesday, November 3rd. Finally, Deutsche Bank Aktiengesellschaft started coverage on shares of Lumentum in a research report on Monday, August 31st. They issued a "buy" rating and a $1,200.00 price objective for the company. Two analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Lumentum presently has an average rating of "Moderate Buy" and an average target price of $1,053.17.

Lumentum Stock Performance

Shares of LITE stock traded down $10.48 during midday trading on Tuesday, hitting $585.68. The company had a trading volume of 4,152,304 shares, compared to its average volume of 5,586,308. The stock has a market cap of $53.12 billion, a price-to-earnings ratio of -7.45 and a beta of 1.64. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.61 and a quick ratio of 1.40. The company's 50 day simple moving average is $888.15 and its 200 day simple moving average is $802.77. Lumentum has a 52-week low of $215.35 and a 52-week high of $1,143.00.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings results on Monday, November 2nd. The technology company reported $4.57 EPS for the quarter, topping the consensus estimate of $4.22 by $0.35. Lumentum had a positive return on equity of 28.85% and a negative net margin of 175.82%. The business had revenue of $1.26 billion during the quarter, compared to analysts' expectations of $1.26 billion. During the same quarter in the prior year, the business earned $1.10 earnings per share. The company's quarterly revenue was up 136.5% compared to the same quarter last year. Research analysts anticipate that Lumentum will post 19.93 earnings per share for the current fiscal year.

Insider Activity

In other Lumentum news, CEO Michael E. Hurlston sold 548 shares of the business's stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $958.66, for a total transaction of $525,345.68. Following the sale, the chief executive officer directly owned 186,951 shares in the company, valued at approximately $179,222,445.66. The trade was a 0.29% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Jae Kim sold 12,000 shares of the business's stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $852.58, for a total transaction of $10,230,960.00. Following the sale, the senior vice president owned 37,804 shares in the company, valued at $32,230,934.32. The trade was a 24.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 94,496 shares of company stock valued at $85,978,498 over the last three months. 0.28% of the stock is currently owned by corporate insiders.

Institutional Trading of Lumentum

Several hedge funds and other institutional investors have recently made changes to their positions in LITE. Jupiter Topco LLC acquired a new position in Lumentum during the second quarter worth about $1,621,396,000. Amundi lifted its position in shares of Lumentum by 188.7% during 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 during the period. WT Asset Management Ltd acquired a new stake in shares of Lumentum during the 2nd quarter valued at approximately $494,688,000. Janus Henderson Group PLC lifted its position in shares of Lumentum by 163.2% during the 1st quarter. Janus Henderson Group PLC now owns 567,182 shares of the technology company's stock valued at $398,590,000 after acquiring an additional 351,676 shares during the period. Finally, Legal & General Group Plc purchased a new stake in shares of Lumentum during the 2nd quarter worth approximately $376,539,000. Institutional investors and hedge funds own 94.05% of the company's stock.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Sanford C. Bernstein raised its price target on Lumentum from $635 to $700 and reiterated an “outperform” rating, signaling potential upside in the analyst’s view. Analyst rating report
• Positive Sentiment: Lumentum rose alongside other optical stocks in an AI-related rebound on Nov. 9, with one report describing an 11% gain as the sector recovery continued. That bounce may help sentiment after the recent selloff. Article on Lumentum’s rebound
• Negative Sentiment: Commentary says Marvell’s share-price decline has reduced the implied value of its proposed stock-based acquisition of Lumentum—from a previously cited $1,132 per share to $774. Because the offer’s value is tied to Marvell stock, its weakness can weigh on LITE and adds uncertainty to the deal’s perceived value. Acquisition-value analysis
• Negative Sentiment: Brodsky & Smith announced an investigation involving Lumentum and invited shareholders to contact the firm. The notice provides no details about the inquiry, but the headline may add investor uncertainty. Shareholder investigation notice

Lumentum Company Profile

Lumentum Holdings Inc. develops and manufactures optical and photonic products used in communications networks and industrial applications. Its offerings include optical components, modules and lasers that help transmit and process data across telecommunications and data center networks. The company also supplies lasers and related technologies for industrial uses, including precision manufacturing and semiconductor production. Its products serve customers in markets around the world. Lumentum became an independent public company in 2015 through a spin-off from JDSU, now Viavi Solutions.

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