Lumentum's (LITE) Buy Rating Reiterated at Rosenblatt Securities

Key Points

• Lumentum has been reaffirmed with a "buy" rating from Rosenblatt Securities, who set a price target of $150.00, indicating a potential upside of 24.76% from its previous close.
• Analysts have shown increased confidence in Lumentum, with several firms raising their price targets and ratings, resulting in an overall average rating of "Moderate Buy" and an average target price of $115.00.
• The company's recent quarterly earnings exceeded expectations, reporting $0.88 EPS and $480.70 million in revenue, a significant year-over-year increase of 55.9% in revenue.

Rosenblatt Securities reaffirmed their buy rating on shares of Lumentum (NASDAQ:LITE - Free Report) in a report issued on Thursday,Benzinga reports. They currently have a $150.00 target price on the technology company's stock.

A number of other equities analysts have also weighed in on LITE. Wolfe Research began coverage on Lumentum in a research report on Tuesday. They issued an "outperform" rating for the company. Stifel Nicolaus boosted their target price on Lumentum from $100.00 to $132.00 and gave the stock a "buy" rating in a research report on Wednesday. B. Riley boosted their target price on Lumentum from $73.00 to $83.00 and gave the stock a "neutral" rating in a research report on Wednesday. UBS Group restated a "neutral" rating and set a $130.00 price target (up from $78.00) on shares of Lumentum in a research note on Wednesday. Finally, Bank of America upgraded Lumentum from an "underperform" rating to a "neutral" rating and boosted their price target for the company from $78.00 to $135.00 in a research note on Wednesday. Four investment analysts have rated the stock with a hold rating, eleven have assigned a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $124.00.

Lumentum Stock Up 1.1%

Shares of LITE traded up $1.24 during trading hours on Thursday, hitting $115.86. The company had a trading volume of 3,164,639 shares, compared to its average volume of 2,892,331. The firm has a fifty day moving average price of $98.59 and a 200-day moving average price of $78.85. The company has a debt-to-equity ratio of 2.26, a quick ratio of 3.53 and a current ratio of 4.37. The stock has a market capitalization of $8.04 billion, a price-to-earnings ratio of 503.74 and a beta of 1.33. Lumentum has a 52-week low of $45.65 and a 52-week high of $129.98.

Lumentum (NASDAQ:LITE - Get Free Report) last issued its earnings results on Tuesday, August 12th. The technology company reported $0.88 earnings per share for the quarter, topping analysts' consensus estimates of $0.79 by $0.09. Lumentum had a negative return on equity of 3.02% and a net margin of 1.57%. The business had revenue of $480.70 million during the quarter, compared to analyst estimates of $465.27 million. During the same quarter in the previous year, the firm earned $0.06 EPS. Lumentum's revenue was up 55.9% on a year-over-year basis. On average, equities research analysts forecast that Lumentum will post 0.03 EPS for the current fiscal year.

Insiders Place Their Bets

In other Lumentum news, insider Vincent Retort sold 22,719 shares of the company's stock in a transaction that occurred on Tuesday, July 29th. The stock was sold at an average price of $110.00, for a total value of $2,499,090.00. Following the completion of the transaction, the insider directly owned 121,747 shares in the company, valued at $13,392,170. This represents a 15.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Alan S. Lowe sold 20,000 shares of the company's stock in a transaction that occurred on Thursday, June 26th. The stock was sold at an average price of $93.47, for a total value of $1,869,400.00. Following the completion of the transaction, the director owned 230,471 shares of the company's stock, valued at $21,542,124.37. The trade was a 7.98% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 76,000 shares of company stock valued at $7,260,909. 0.19% of the stock is owned by company insiders.

Institutional Trading of Lumentum

Hedge funds have recently modified their holdings of the company. Vanguard Group Inc. grew its position in Lumentum by 0.6% in the 1st quarter. Vanguard Group Inc. now owns 7,430,185 shares of the technology company's stock valued at $463,198,000 after acquiring an additional 47,811 shares during the last quarter. Capital World Investors grew its position in Lumentum by 108.3% in the 4th quarter. Capital World Investors now owns 3,600,132 shares of the technology company's stock valued at $302,231,000 after acquiring an additional 1,871,572 shares during the last quarter. PointState Capital LP bought a new position in Lumentum in the 1st quarter valued at $213,503,000. Hood River Capital Management LLC grew its position in Lumentum by 82.1% in the 2nd quarter. Hood River Capital Management LLC now owns 2,206,453 shares of the technology company's stock valued at $209,745,000 after acquiring an additional 994,551 shares during the last quarter. Finally, Atreides Management LP grew its position in Lumentum by 6.8% in the 1st quarter. Atreides Management LP now owns 1,875,257 shares of the technology company's stock valued at $116,904,000 after acquiring an additional 119,938 shares during the last quarter. 94.05% of the stock is 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.