Lumentum Holdings Inc. (NASDAQ:LITE) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Lumentum Holdings Inc. has received an average recommendation of "Moderate Buy" from eighteen brokerages, with twelve analysts issuing buy ratings and a 12-month price target averaging $125.86.
• The company reported $0.88 earnings per share last quarter, surpassing expectations, with a revenue of $480.7 million, marking a 55.9% year-over-year increase.
• Insider transactions show that recent sales by directors involved over $9 million in shares, indicating a 5.37% decrease in ownership from one director following their sale.

Shares of Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the eighteen research firms that are presently covering the company, MarketBeat.com reports. Four investment analysts have rated the stock with a hold rating, twelve have issued a buy rating and two have assigned a strong buy rating to the company. The average 12-month price objective among brokerages that have covered the stock in the last year is $125.8571.

Several analysts have recently issued reports on LITE shares. Susquehanna increased their price target on shares of Lumentum to $125.00 and gave the stock a "positive" rating in a research report on Tuesday, August 12th. Citigroup began coverage on shares of Lumentum in a report on Friday. They issued a "buy" rating and a $165.00 target price on the stock. Wall Street Zen cut shares of Lumentum from a "buy" rating to a "hold" rating in a report on Saturday. Raymond James Financial raised their target price on shares of Lumentum from $125.00 to $145.00 and gave the company a "strong-buy" rating in a report on Wednesday, August 13th. Finally, Rosenblatt Securities reaffirmed a "buy" rating and issued a $150.00 target price on shares of Lumentum in a report on Thursday, August 14th.

Lumentum Stock Down 2.0%

Shares of LITE opened at $132.81 on Tuesday. The stock has a market capitalization of $9.28 billion, a PE ratio of 577.43 and a beta of 1.42. Lumentum has a 1 year low of $45.65 and a 1 year high of $137.10. The company has a debt-to-equity ratio of 2.26, a quick ratio of 3.18 and a current ratio of 4.37. The company's 50-day simple moving average is $107.04 and its 200-day simple moving average is $81.93.

Lumentum (NASDAQ:LITE - Get Free Report) last issued its quarterly earnings results on Tuesday, August 12th. The technology company reported $0.88 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.79 by $0.09. The business had revenue of $480.70 million for the quarter, compared to analysts' expectations of $465.27 million. Lumentum had a net margin of 1.57% and a negative return on equity of 3.02%. The business's quarterly revenue was up 55.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.06 earnings per share. Lumentum has set its Q1 2026 guidance at 0.950-1.100 EPS. Analysts forecast that Lumentum will post 0.03 earnings per share for the current fiscal year.

Insider Transactions at Lumentum

In related news, Director Julia Suzanne Johnson sold 1,250 shares of the firm's stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $119.06, for a total value of $148,825.00. Following the sale, the director owned 22,037 shares of the company's stock, valued at $2,623,725.22. This trade represents a 5.37% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Jae Kim sold 4,507 shares of the firm's stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $116.88, for a total transaction of $526,778.16. Following the completion of the sale, the senior vice president directly owned 33,465 shares in the company, valued at approximately $3,911,389.20. This trade represents a 11.87% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 93,909 shares of company stock valued at $9,419,867 over the last quarter. Insiders own 0.19% of the company's stock.

Hedge Funds Weigh In On Lumentum

Several hedge funds have recently added to or reduced their stakes in LITE. Skandinaviska Enskilda Banken AB publ purchased a new position in Lumentum in the first quarter valued at approximately $25,000. Rakuten Securities Inc. increased its stake in Lumentum by 164.4% in the first quarter. Rakuten Securities Inc. now owns 476 shares of the technology company's stock valued at $30,000 after purchasing an additional 296 shares during the last quarter. Golden State Wealth Management LLC increased its stake in Lumentum by 103.2% in the first quarter. Golden State Wealth Management LLC now owns 512 shares of the technology company's stock valued at $32,000 after purchasing an additional 260 shares during the last quarter. CoreCap Advisors LLC increased its stake in Lumentum by 2,235.3% in the fourth quarter. CoreCap Advisors LLC now owns 397 shares of the technology company's stock valued at $33,000 after purchasing an additional 380 shares during the last quarter. Finally, FNY Investment Advisers LLC purchased a new position in Lumentum in the second quarter valued at approximately $38,000. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

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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