Citic Securities Forecasts Strong Price Appreciation for Lumentum (NASDAQ:LITE) Stock

Key Points

• Citic Securities raised its price target on Lumentum from $620 to $1,186, implying about 31% upside from the prior close.
• Several other analysts also boosted targets, and the stock now carries a Moderate Buy consensus with 13 Buy ratings and a consensus target price of $1,012.43.
• Lumentum reported strong quarterly results, including EPS of $2.37 versus the $2.27 estimate and revenue up 90.1% year over year, while hedge funds hold 94.05% of the stock.

Lumentum (NASDAQ:LITE - Get Free Report) had its target price lifted by stock analysts at Citic Securities from $620.00 to $1,186.00 in a report released on Monday,MarketScreener reports. Citic Securities' price objective suggests a potential upside of 31.32% from the stock's previous close.

A number of other analysts also recently issued reports on the company. Susquehanna lifted their target price on Lumentum from $550.00 to $1,100.00 and gave the company a "positive" rating in a research report on Monday, April 20th. TD Cowen increased their price target on Lumentum from $875.00 to $995.00 and gave the company a "hold" rating in a research report on Wednesday. Jefferies Financial Group restated a "buy" rating and issued a $1,200.00 price target on shares of Lumentum in a research note on Wednesday. JPMorgan Chase & Co. boosted their price target on Lumentum from $950.00 to $1,130.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Finally, Loop Capital upped their price objective on Lumentum from $900.00 to $1,400.00 and gave the stock a "buy" rating in a research note on Tuesday, May 5th. Thirteen equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat, Lumentum has a consensus rating of "Moderate Buy" and a consensus target price of $1,012.43.

Lumentum Stock Performance

Shares of LITE opened at $903.12 on Monday. Lumentum has a 12 month low of $63.98 and a 12 month high of $1,021.00. The firm has a fifty day simple moving average of $776.13 and a 200 day simple moving average of $502.93. The stock has a market capitalization of $70.26 billion, a price-to-earnings ratio of 167.24 and a beta of 1.53. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE - Get Free Report) last released its earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, beating analysts' consensus estimates of $2.27 by $0.10. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The business had revenue of $808.40 million during the quarter, compared to the consensus estimate of $810.21 million. During the same quarter last year, the firm earned $0.57 earnings per share. The firm's revenue for the quarter was up 90.1% compared to the same quarter last year. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. Research analysts forecast that Lumentum will post 5.95 EPS for the current fiscal year.

Insiders Place Their Bets

In other Lumentum news, Director Penny Herscher sold 4,000 shares of the company's stock in a transaction that occurred on Thursday, February 12th. The stock was sold at an average price of $597.29, for a total value of $2,389,160.00. Following the sale, the director owned 2,057 shares in the company, valued at $1,228,625.53. This represents a 66.04% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Yuen Wupen sold 3,157 shares of the firm's stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $538.00, for a total value of $1,698,466.00. Following the completion of the sale, the insider directly owned 88,439 shares of the company's stock, valued at approximately $47,580,182. The trade was a 3.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 60,926 shares of company stock worth $36,254,801 in the last three months. 0.43% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Lumentum

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Advisors Asset Management Inc. raised its position in shares of Lumentum by 36.8% in the first quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company's stock valued at $59,000 after purchasing an additional 254 shares during the period. NewEdge Advisors LLC grew its stake in Lumentum by 109.9% in the 1st quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company's stock valued at $747,000 after buying an additional 6,275 shares during the last quarter. Empowered Funds LLC raised its holdings in Lumentum by 9.1% in the 1st quarter. Empowered Funds LLC now owns 8,139 shares of the technology company's stock valued at $507,000 after acquiring an additional 680 shares during the period. Hsbc Holdings PLC bought a new position in Lumentum in the 2nd quarter valued at about $298,000. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in Lumentum during the second quarter worth approximately $1,712,000. 94.05% of the stock is owned by institutional investors.

About Lumentum

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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