Lumentum (NASDAQ:LITE) Upgraded by Evercore to Strong-Buy Rating

Key Points

• Evercore upgraded Lumentum to “strong buy,” contributing to a broader analyst consensus of “Moderate Buy” with an average price target of $1,053.83.
• Lumentum reported quarterly EPS of $3.23, beating estimates of $2.97, while revenue reached $1.01 billion—up 109.3% year over year and above expectations.
• Shares opened at $914.76, near the upper end of their 12-month range, while insiders sold $54.0 million of stock over the past 90 days, mostly through pre-arranged trading plans.

Lumentum (NASDAQ:LITE - Get Free Report) was upgraded by analysts at Evercore to a "strong-buy" rating in a research report issued to clients and investors on Monday, Zacks reports.

A number of other research firms have also recently issued reports on LITE. Craig Hallum lifted their price target on shares of Lumentum from $900.00 to $1,150.00 in a research note on Wednesday, May 6th. Weiss Ratings cut shares of Lumentum from a "hold (c-)" rating to a "sell (d-)" rating in a research report on Wednesday, August 19th. Barclays increased their price objective on shares of Lumentum from $750.00 to $1,000.00 and gave the company an "equal weight" rating in a report on Wednesday, May 6th. Needham & Company LLC reiterated a "buy" rating and issued a $1,040.00 target price on shares of Lumentum in a research report on Wednesday, August 12th. Finally, Northland Securities boosted their target price on shares of Lumentum from $1,000.00 to $1,200.00 and gave the stock an "outperform" rating in a research note on Wednesday, June 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $1,053.83.

Lumentum Stock Performance

Shares of LITE stock opened at $914.76 on Monday. The company has a market capitalization of $82.05 billion, a P/E ratio of -11.13 and a beta of 1.50. The business's 50 day moving average is $812.24 and its two-hundred day moving average is $809.18. The company has a current ratio of 1.68, a quick ratio of 1.40 and a debt-to-equity ratio of 0.01. Lumentum has a 12-month low of $125.00 and a 12-month high of $1,085.68.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its quarterly earnings data on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, beating analysts' consensus estimates of $2.97 by $0.26. The business had revenue of $1.01 billion during the quarter, compared to analysts' expectations of $987.70 million. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%.The business's revenue was up 109.3% compared to the same quarter last year. During the same period in the previous year, the business earned $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Analysts expect that Lumentum will post 19.76 EPS for the current fiscal year.

Insider Transactions at Lumentum

In other Lumentum news, insider Vincent Retort sold 38,663 shares of Lumentum stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $852.59, for a total transaction of $32,963,687.17. Following the sale, the insider owned 78,440 shares of the company's stock, valued at $66,877,159.60. The trade was a 33.02% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 1,500 shares of the company's stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $827.82, for a total transaction of $1,241,730.00. Following the sale, the insider directly owned 100,434 shares of the company's stock, valued at $83,141,273.88. The trade was a 1.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders sold a total of 63,147 shares of company stock valued at $54,032,636 in the last 90 days. 0.43% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lumentum

Several hedge funds and other institutional investors have recently modified their holdings of the business. California State Teachers Retirement System boosted its position in Lumentum by 112,343.2% during the second quarter. California State Teachers Retirement System now owns 92,237,160 shares of the technology company's stock worth $79,145,018,000 after acquiring an additional 92,155,130 shares during the last quarter. Jupiter Topco LLC acquired a new stake in Lumentum in the 2nd quarter valued at about $1,621,396,000. Arrowstreet Capital Limited Partnership raised its holdings in Lumentum by 18.7% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company's stock valued at $683,661,000 after acquiring an additional 291,591 shares during the last quarter. Geode Capital Management LLC lifted its stake in Lumentum by 9.6% in the 4th quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company's stock worth $521,563,000 after purchasing an additional 123,265 shares in the last quarter. Finally, Situational Awareness LP lifted its stake in Lumentum by 210.9% in the 4th quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company's stock worth $478,577,000 after purchasing an additional 880,800 shares in the last quarter. 94.05% of the stock is owned by hedge funds and other institutional investors.

Lumentum Company Profile

Lumentum Holdings Inc, headquartered in San Jose, California, is a leading provider of photonic technologies that enable high-speed optical communication networks and advanced industrial applications. The company designs and manufactures a broad range of lasers, optical modules and subsystems tailored to the evolving requirements of telecommunications carriers, cloud data centers and enterprise networking.

Its core product portfolio includes tunable and fixed-wavelength laser transmitters, coherent optical engines, transceivers for long-haul, metro and data center interconnects, as well as test and measurement instruments.

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