Loop Capital Increases Lumentum (NASDAQ:LITE) Price Target to $1,400.00

Key Points

• Loop Capital raised its price target to $1,400 (from $900) and maintained a "buy" rating, implying roughly a 43% upside from the prior close.
• Lumentum posted strong quarterly results — EPS $1.67 vs $1.41 expected and revenue $665.5M, up 65.5% year-over-year, prompting multiple analyst target increases.
• Valuation and ownership signals are mixed: the stock carries a high PE (~299) and $69.7B market cap, institutional ownership is ~94%, while insiders sold about $38.9M of shares last quarter.

Lumentum (NASDAQ:LITE - Get Free Report) had its target price upped by equities researchers at Loop Capital from $900.00 to $1,400.00 in a note issued to investors on Tuesday,MarketScreener reports. The brokerage currently has a "buy" rating on the technology company's stock. Loop Capital's price target suggests a potential upside of 43.42% from the company's previous close.

A number of other brokerages have also recently weighed in on LITE. TD Cowen lifted their price target on Lumentum from $675.00 to $875.00 and gave the stock a "hold" rating in a research note on Friday, April 10th. Stifel Nicolaus boosted their price target on shares of Lumentum from $800.00 to $1,100.00 and gave the company a "buy" rating in a report on Tuesday. Needham & Company LLC upped their price target on shares of Lumentum from $880.00 to $1,040.00 and gave the company a "buy" rating in a research report on Tuesday, April 21st. JPMorgan Chase & Co. lifted their price target on Lumentum to $950.00 and gave the company an "overweight" rating in a report on Thursday, April 9th. Finally, Rosenblatt Securities reissued a "buy" rating and issued a $900.00 price objective on shares of Lumentum in a research note on Wednesday, March 18th. Twelve investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat, Lumentum currently has a consensus rating of "Moderate Buy" and a consensus price target of $812.71.

Lumentum Stock Up 2.8%

LITE opened at $976.18 on Tuesday. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.45 and a current ratio of 0.61. The company has a market capitalization of $69.70 billion, a PE ratio of 299.44 and a beta of 1.53. The stock's fifty day moving average is $760.12 and its 200-day moving average is $486.41. Lumentum has a one year low of $60.38 and a one year high of $1,004.94.

Lumentum (NASDAQ:LITE - Get Free Report) last released its earnings results on Tuesday, February 3rd. The technology company reported $1.67 EPS for the quarter, topping analysts' consensus estimates of $1.41 by $0.26. The business had revenue of $665.50 million for the quarter, compared to the consensus estimate of $646.74 million. Lumentum had a net margin of 11.95% and a return on equity of 17.27%. The business's revenue for the quarter was up 65.5% on a year-over-year basis. During the same period in the previous year, the firm earned $0.42 EPS. On average, equities analysts predict that Lumentum will post 5.87 EPS for the current fiscal year.

Insider Buying and Selling at Lumentum

In other Lumentum news, CFO Wajid Ali sold 5,302 shares of the stock in a transaction on Friday, February 27th. The shares were sold at an average price of $691.13, for a total transaction of $3,664,371.26. Following the transaction, the chief financial officer directly owned 66,287 shares of the company's stock, valued at $45,812,934.31. This represents a 7.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Penny Herscher sold 4,849 shares of the firm's stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $535.48, for a total value of $2,596,542.52. Following the transaction, the director owned 6,057 shares in the company, valued at approximately $3,243,402.36. This trade represents a 44.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 65,775 shares of company stock worth $38,851,343 over the last quarter. Company insiders own 0.43% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in LITE. Sachetta LLC boosted its position in Lumentum by 118.8% during the first quarter. Sachetta LLC now owns 35 shares of the technology company's stock worth $25,000 after purchasing an additional 19 shares during the period. Hilton Head Capital Partners LLC acquired a new stake in shares of Lumentum in the first quarter worth $25,000. Abel Hall LLC boosted its holdings in shares of Lumentum by 5.5% during the 1st quarter. Abel Hall LLC now owns 693 shares of the technology company's stock worth $487,000 after buying an additional 36 shares during the period. Checchi Capital Advisers LLC boosted its holdings in shares of Lumentum by 5.1% during the 1st quarter. Checchi Capital Advisers LLC now owns 790 shares of the technology company's stock worth $555,000 after buying an additional 38 shares during the period. Finally, 180 Wealth Advisors LLC grew its stake in Lumentum by 2.9% in the 1st quarter. 180 Wealth Advisors LLC now owns 1,553 shares of the technology company's stock valued at $1,092,000 after buying an additional 44 shares during the last quarter. 94.05% of the stock is owned by 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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