B. Riley Issues Positive Forecast for Lumentum (NASDAQ:LITE) Stock Price

Key Points

• B. Riley raised its price target for Lumentum (NASDAQ:LITE) from $73.00 to $83.00, while maintaining a "neutral" rating on the stock, indicating a potential downside of 30.64% from its previous close.
• Research analysts show overall optimism, with Stifel Nicolaus and JPMorgan Chase increasing their price targets significantly, suggesting stronger "buy" ratings, while UBS Group lowered their target but kept a "neutral" stance.
• Lumentum reported a 55.9% year-over-year revenue increase in its last quarterly earnings, beating estimates with $480.70 million in revenue and $0.88 EPS, demonstrating strong growth potential in the optical technology sector.

Lumentum (NASDAQ:LITE - Get Free Report) had its price target increased by equities research analysts at B. Riley from $73.00 to $83.00 in a research report issued on Wednesday,Benzinga reports. The firm presently has a "neutral" rating on the technology company's stock. B. Riley's target price would indicate a potential downside of 30.64% from the stock's previous close.

A number of other research analysts also recently issued reports on LITE. Stifel Nicolaus raised their price target on shares of Lumentum from $100.00 to $132.00 and gave the stock a "buy" rating in a research report on Wednesday. JPMorgan Chase & Co. increased their price objective on shares of Lumentum from $100.00 to $123.00 and gave the stock an "overweight" rating in a research note on Thursday, July 17th. UBS Group cut their target price on shares of Lumentum from $96.00 to $78.00 and set a "neutral" rating on the stock in a report on Wednesday, May 7th. Needham & Company LLC upped their target price on Lumentum from $135.00 to $145.00 and gave the company a "buy" rating in a report on Wednesday. Finally, Bank of America upgraded Lumentum from an "underperform" rating to a "neutral" rating and increased their price target for the stock from $78.00 to $135.00 in a research report on Wednesday. Four equities research analysts have rated the stock with a hold rating, eleven have assigned a buy rating and two have given a strong buy rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $103.33.

Lumentum Trading Up 4.0%

NASDAQ:LITE opened at $119.66 on Wednesday. The company has a market cap of $8.30 billion, a PE ratio of -18.55 and a beta of 1.33. The business's 50 day moving average is $96.45 and its two-hundred day moving average is $78.01. The company has a quick ratio of 3.53, a current ratio of 4.72 and a debt-to-equity ratio of 2.91. Lumentum has a 52 week low of $44.77 and a 52 week high of $120.30.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its quarterly earnings results on Tuesday, August 12th. The technology company reported $0.88 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.79 by $0.09. Lumentum had a negative return on equity of 8.69% and a negative net margin of 29.87%. The business had revenue of $480.70 million for the quarter, compared to analyst estimates of $465.27 million. During the same period in the prior year, the company posted $0.06 EPS. The business's revenue was up 55.9% compared to the same quarter last year. On average, analysts predict that Lumentum will post 0.03 EPS for the current year.

Insider Activity at Lumentum

In other news, insider Yuen Wupen sold 241 shares of the stock in a transaction that occurred on Wednesday, August 6th. The shares were sold at an average price of $108.34, for a total value of $26,109.94. Following the completion of the transaction, the insider directly owned 78,597 shares in the company, valued at $8,515,198.98. This trade represents a 0.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Jae Kim sold 4,577 shares of the business's stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $77.98, for a total value of $356,914.46. Following the sale, the senior vice president directly owned 31,534 shares in the company, valued at approximately $2,459,021.32. The trade was a 12.67% decrease in their position. The disclosure for this sale can be found here. Insiders sold 85,583 shares of company stock worth $8,002,956 in the last three months. Insiders own 0.19% of the company's stock.

Hedge Funds Weigh In On Lumentum

Several hedge funds have recently made changes to their positions in LITE. Cambridge Investment Research Advisors Inc. bought a new stake in shares of Lumentum during the 1st quarter worth $260,000. Crestline Management LP purchased a new stake in Lumentum during the fourth quarter valued at about $4,435,000. UMB Bank n.a. boosted its holdings in shares of Lumentum by 132.9% in the first quarter. UMB Bank n.a. now owns 785 shares of the technology company's stock worth $49,000 after buying an additional 448 shares during the period. Principal Financial Group Inc. increased its position in shares of Lumentum by 1.1% in the first quarter. Principal Financial Group Inc. now owns 159,154 shares of the technology company's stock worth $9,922,000 after acquiring an additional 1,660 shares in the last quarter. Finally, Asset Management One Co. Ltd. acquired a new stake in shares of Lumentum during the first quarter valued at approximately $69,000. Institutional investors and hedge funds own 94.05% of the company's stock.

Lumentum Company Profile

Lumentum Holdings Inc manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables.

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