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

Key Points

• Analysts are broadly optimistic on Lumentum, with 20 covering the stock and a consensus rating of “Moderate Buy.” Thirteen analysts rate it a buy, and the average 12-month price target is $1,003.75.
• Recent earnings were strong, as Lumentum reported fiscal Q3 EPS of $2.37, topping estimates, while revenue jumped 90.1% year over year on strong cloud and AI demand. The company also guided for Q4 2026 EPS of $2.85 to $3.05.
• Sentiment has improved further after multiple firms raised targets, including Rosenblatt to $1,300, Loop Capital to $1,400, and Barclays to $1,000. At the same time, some insiders have sold shares and the stock has seen sector-driven volatility as the AI optics trade cooled.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) has been assigned an average rating of "Moderate Buy" from the twenty analysts that are covering the company, Marketbeat.com reports. Seven equities research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $1,003.75.

LITE has been the subject of several analyst reports. Rosenblatt Securities upped their price target on Lumentum from $900.00 to $1,300.00 and gave the stock a "buy" rating in a research note on Wednesday. Mizuho set a $1,100.00 price target on Lumentum in a research note on Wednesday. Zacks Research cut Lumentum from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 13th. Stifel Nicolaus upped their price target on Lumentum from $800.00 to $1,100.00 and gave the stock a "buy" rating in a research note on Tuesday, May 5th. Finally, Bank of America upped their price target on Lumentum to $520.00 and gave the stock a "neutral" rating in a research note on Wednesday, February 4th.

Key Headlines Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum reported fiscal Q3 earnings that beat estimates, with revenue up 90% year over year on strong cloud and AI demand; the company also said 1.6T transceiver shipments are set to ramp in fiscal Q4. Article Title
• Positive Sentiment: Several analysts turned constructive on Lumentum, including Craig Hallum raising its price target to $1,150, Barclays lifting its target to $1,000, Loop Capital boosting its target to $1,400, and Rothschild Redburn initiating coverage with a Buy rating and a $1,270 target.
• Positive Sentiment: Other note writers, including JPMorgan and BNP Paribas Exane, also issued upbeat outlooks, reinforcing the view that demand is exceeding supply and that the company remains well positioned in AI and cloud optics.
• Neutral Sentiment: One market report said the stock was among several technology names with conflicted analyst views, suggesting investors are still weighing valuation against growth expectations. Article Title
• Negative Sentiment: Despite the strong fundamentals, Lumentum shares slipped intraday as the AI optics trade cooled, with peers like Coherent and Applied Optoelectronics also falling sharply, pointing to sector profit-taking rather than company-specific weakness. Article Title

Lumentum Price Performance

Shares of NASDAQ LITE opened at $903.12 on Friday. The stock has a market cap of $70.26 billion, a P/E ratio of 167.24 and a beta of 1.53. The company has a current ratio of 1.14, a quick ratio of 0.45 and a debt-to-equity ratio of 0.01. The stock has a 50 day moving average of $776.13 and a two-hundred day moving average of $502.93. Lumentum has a twelve month low of $63.98 and a twelve month high of $1,021.00.

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

Insiders Place Their Bets

In other Lumentum news, Director Penny Herscher sold 4,000 shares of the stock in a transaction 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 completion of the transaction, the director owned 2,057 shares in the company, valued at approximately $1,228,625.53. This represents a 66.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Yuen Wupen sold 3,157 shares of the stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $538.00, for a total value of $1,698,466.00. Following the completion of the transaction, the insider owned 88,439 shares of the company's stock, valued at $47,580,182. The trade was a 3.45% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 60,926 shares of company stock worth $36,254,801. 0.43% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of LITE. Federated Hermes Inc. grew its holdings in Lumentum by 7,168.8% in the third quarter. Federated Hermes Inc. now owns 362,352 shares of the technology company's stock valued at $58,958,000 after purchasing an additional 357,367 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new stake in Lumentum in the fourth quarter valued at $6,755,000. FengHe Fund Management Pte. Ltd. acquired a new stake in Lumentum in the third quarter valued at $71,771,000. Headwater Capital Co Ltd acquired a new stake in Lumentum in the third quarter valued at $20,339,000. Finally, Estate Counselors LLC acquired a new stake in Lumentum in the fourth quarter valued at $4,239,000. Hedge funds and other institutional investors own 94.05% of the company's stock.

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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