Lumentum Holdings Inc. (NASDAQ:LITE) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Lumentum has a consensus analyst rating of "Moderate Buy", with 14 buy ratings, 6 hold ratings, and 1 strong buy from 21 covering firms. The average 12-month price target is about $1,021.95.
• Several analysts recently raised their targets, including Stifel Nicolaus, BNP Paribas Exane, and Mizuho, reflecting continued optimism around the stock. Targets in the group range as high as $1,300.
• The company reported strong quarterly results, with EPS of $2.37 beating estimates and revenue up 90.1% year over year. Lumentum also guided Q4 2026 EPS at $2.85 to $3.05.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) has earned a consensus rating of "Moderate Buy" from the twenty-one ratings firms that are covering the firm, Marketbeat reports. Six analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $1,021.9524.

Several analysts have commented on LITE shares. Stifel Nicolaus upped their target price on shares of Lumentum from $800.00 to $1,100.00 and gave the company a "buy" rating in a research report on Tuesday, May 5th. Mizuho set a $1,100.00 target price on shares of Lumentum in a research report on Wednesday, May 6th. BNP Paribas Exane upped their target price on shares of Lumentum from $1,040.00 to $1,300.00 in a research report on Wednesday, May 6th. Morgan Stanley upped their target price on shares of Lumentum from $710.00 to $900.00 and gave the company an "equal weight" rating in a research report on Wednesday, May 6th. Finally, Raymond James Financial reiterated an "outperform" rating and set a $1,014.00 target price on shares of Lumentum in a research report on Wednesday, May 6th.

Insider Activity at Lumentum

In other Lumentum news, insider Vincent Retort sold 3,183 shares of the company's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $3,036,422.85. Following the completion of the sale, the insider owned 89,563 shares in the company, valued at approximately $85,438,623.85. The trade was a 3.43% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Wajid Ali sold 2,487 shares of the business's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $2,372,473.65. Following the completion of the transaction, the chief financial officer directly owned 60,951 shares of the company's stock, valued at $58,144,206.45. This trade represents a 3.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 39,844 shares of company stock worth $37,443,107. 0.43% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lumentum

Institutional investors and hedge funds have recently made changes to their positions in the company. Hilton Head Capital Partners LLC acquired a new position in shares of Lumentum in the 1st quarter valued at $25,000. Sachetta LLC grew its holdings in shares of Lumentum by 118.8% in the 1st quarter. Sachetta LLC now owns 35 shares of the technology company's stock valued at $25,000 after buying an additional 19 shares during the period. EverSource Wealth Advisors LLC grew its holdings in shares of Lumentum by 363.9% in the 3rd quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company's stock valued at $27,000 after buying an additional 131 shares during the period. V Square Quantitative Management LLC acquired a new position in shares of Lumentum in the 4th quarter valued at $28,000. Finally, Truvestments Capital LLC grew its holdings in shares of Lumentum by 300.0% in the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company's stock valued at $28,000 after buying an additional 57 shares during the period. Institutional investors and hedge funds own 94.05% of the company's stock.

Lumentum Stock Performance

LITE stock opened at $938.00 on Thursday. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97. The company has a 50 day moving average price of $875.70 and a 200 day moving average price of $600.97. Lumentum has a fifty-two week low of $79.50 and a fifty-two week high of $1,085.68. The stock has a market capitalization of $72.98 billion, a PE ratio of 173.70 and a beta of 1.47.

Lumentum (NASDAQ:LITE - Get Free Report) last issued its earnings results on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, beating the consensus estimate of $2.27 by $0.10. The company had revenue of $808.40 million during the quarter, compared to analysts' expectations of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The business's revenue for the quarter was up 90.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. Analysts forecast that Lumentum will post 6.49 EPS for the current year.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Northland Securities raised its price target on Lumentum and kept an Outperform rating, reinforcing the bullish case for more upside. Northland Securities adjusts PT on Lumentum
• Positive Sentiment: Market commentary highlighted Nvidia’s shift from copper to optical interconnects in AI data centers, putting Lumentum at the center of a major long-term growth theme. Nvidia optics shift puts Lumentum at center of AI data centers
• Positive Sentiment: Optical networking stocks broadly rallied as investors piled into AI-related infrastructure names, which has helped lift sentiment toward Lumentum alongside peers like Coherent and Corning. Why Coherent and Lumentum stocks jumped on Tuesday
• Neutral Sentiment: One article noted that a director sold 4,000 shares, but the sale was made under a pre-arranged 10b5-1 plan, so it is less likely to be interpreted as a negative fundamental signal. Director Isaac Hosojiro Harris sells 4,000 shares

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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