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

Key Points

• Moderate Buy consensus from 18 analysts with an average 1‑year price target of $629.44, though individual targets range as high as $875 and some firms remain neutral/hold.
• Lumentum beat quarterly estimates (EPS $1.67 vs. $1.41) with revenue up 65.5% YoY and set Q3 2026 guidance of $2.15–$2.35, citing sustained AI-driven optical demand.
• Shares have surged roughly 1,500%+ year‑over‑year, giving a $60.9B market cap and a stretched valuation (P/E ~261.6), raising short‑term pullback risk that’s compounded by recent insider selling.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) has been assigned an average rating of "Moderate Buy" from the eighteen ratings firms that are covering the firm, MarketBeat Ratings reports. Six equities research analysts have rated the stock with a hold rating, ten have issued a buy rating and two have issued a strong buy rating on the company. The average 1-year price objective among brokerages that have issued ratings on the stock in the last year is $629.4375.

A number of equities research analysts have recently weighed in on LITE shares. B. Riley Financial upgraded shares of Lumentum from a "neutral" rating to a "buy" rating and raised their price target for the company from $147.00 to $526.00 in a research note on Wednesday, February 4th. Barclays raised their price target on shares of Lumentum to $750.00 and gave the company an "equal weight" rating in a research note on Tuesday, March 3rd. TD Cowen raised their price target on shares of Lumentum from $675.00 to $875.00 and gave the company a "hold" rating in a research note on Friday, April 10th. Weiss Ratings restated a "hold (c-)" rating on shares of Lumentum in a research note on Monday, December 29th. Finally, Bank of America raised their price target on shares of Lumentum to $520.00 and gave the company a "neutral" rating in a research note on Wednesday, February 4th.

Key Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Strong fundamentals and upbeat outlook: recent quarterly results beat estimates and the company reiterated robust guidance tied to AI-driven optical demand, supporting longer-term growth expectations. Why Lumentum (LITE) Just Saw One of the Most Aggressive Target Revisions in Tech
• Positive Sentiment: Analyst support: at least one firm recently raised LITE’s price target (to $875), signaling continued analyst conviction that revenue and margin momentum persist. Lumentum NASDAQ: LITE Price Target Raised to $875.00
• Positive Sentiment: Macro/sector tailwinds: multiple market write-ups highlight LITE as a beneficiary of the AI infrastructure boom and hyperscaler optical/network spending, and it’s listed among stocks that helped tech-driven rebounds. Buy 3 AI Infra Giants Flourishing Past Month With More Room to Run
• Neutral Sentiment: Wild share-price appreciation: multiple articles note Lumentum’s parabolic gains (1,500%–1,600%+ YTD/1yr), prompting debate about sustainability—coverage that both attracts buyers and highlights risk. Up 1,600% over the past year, does Lumentum stock have more room to run? Up 1,539% over the past year, what is next for red-hot Lumentum stock?
• Neutral Sentiment: Relative positioning: analysts comparing fiber-laser/optics peers still favor LITE on growth and estimate revisions versus some competitors, which supports investor rotation within the group. nLIGHT vs. Lumentum: Which Fiber Laser Stock is a Buy Right Now?
• Negative Sentiment: Technical/valuation risks: commentators flag LITE as overbought and vulnerable to a pullback after the steep rally; elevated valuation metrics increase the odds of short-term profit-taking. Soaring Lumentum stock gets overbought as Wyckoff points to a dive
• Negative Sentiment: Market dynamics/profit-taking: after the massive rally, intraday weakness is consistent with rotation and traders locking gains despite the positive fundamentals; this is exacerbated by high P/E and tighter near-term liquidity metrics. 5 Stocks in the S&P 500 ETF That Helped Erase Iran War Losses

Insider Activity at Lumentum

In other news, 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 sale, the insider directly owned 88,439 shares in the company, valued at approximately $47,580,182. This trade represents a 3.45% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Wajid Ali sold 5,302 shares of the firm's stock in a transaction that occurred 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 completion of the sale, the chief financial officer owned 66,287 shares in the company, valued at approximately $45,812,934.31. The trade was a 7.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 65,775 shares of company stock valued at $38,851,343. 0.43% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Lumentum

Several hedge funds have recently added to or reduced their stakes in the business. Parallel Advisors LLC boosted its position in Lumentum by 16.0% during the 4th quarter. Parallel Advisors LLC now owns 326 shares of the technology company's stock worth $120,000 after buying an additional 45 shares during the period. Allworth Financial LP boosted its position in Lumentum by 6.4% during the 3rd quarter. Allworth Financial LP now owns 784 shares of the technology company's stock worth $128,000 after buying an additional 47 shares during the period. UMB Bank n.a. boosted its position in Lumentum by 5.2% during the 4th quarter. UMB Bank n.a. now owns 968 shares of the technology company's stock worth $357,000 after buying an additional 48 shares during the period. Truvestments Capital LLC boosted its position in Lumentum by 300.0% during the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company's stock worth $28,000 after buying an additional 57 shares during the period. Finally, Oregon Public Employees Retirement Fund boosted its position in Lumentum by 0.4% during the 4th quarter. Oregon Public Employees Retirement Fund now owns 14,130 shares of the technology company's stock worth $5,208,000 after buying an additional 60 shares during the period. 94.05% of the stock is currently owned by institutional investors and hedge funds.

Lumentum Stock Down 2.1%

Shares of LITE opened at $852.79 on Wednesday. Lumentum has a one year low of $49.13 and a one year high of $960.00. The company has a market cap of $60.89 billion, a P/E ratio of 261.59 and a beta of 1.38. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.61 and a quick ratio of 0.45. The firm has a 50 day simple moving average of $688.49 and a two-hundred day simple moving average of $427.13.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its quarterly earnings data on Tuesday, February 3rd. The technology company reported $1.67 EPS for the quarter, beating the consensus estimate of $1.41 by $0.26. Lumentum had a net margin of 11.95% and a return on equity of 17.27%. The business had revenue of $665.50 million during the quarter, compared to the consensus estimate of $646.74 million. During the same period in the previous year, the business earned $0.42 earnings per share. The company's revenue was up 65.5% on a year-over-year basis. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. Research analysts forecast that Lumentum will post 0.03 EPS for the current fiscal year.

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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