Lumentum (NASDAQ:LITE) Hits New 12-Month High - Here's Why

Key Points

• Lumentum Holdings Inc. reached a new 12-month high stock price of $130.68, indicating strong investor interest with a trading volume of 220,108 shares.
• Analysts have set increased price targets for Lumentum, with Needham & Company and JPMorgan Chase rating the stock as a "buy" and revising target prices up to $145 and $150 respectively.
• In their latest earnings report, Lumentum surpassed analysts' expectations with EPS of $0.88 and a substantial revenue increase of 55.9% year-over-year.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s stock price reached a new 52-week high during trading on Thursday . The stock traded as high as $130.50 and last traded at $130.68, with a volume of 220108 shares traded. The stock had previously closed at $125.84.

Analysts Set New Price Targets

Several equities research analysts recently commented on LITE shares. Wolfe Research started coverage on shares of Lumentum in a research report on Tuesday, August 12th. They set an "outperform" rating on the stock. Needham & Company LLC reiterated a "buy" rating and set a $145.00 target price (up from $135.00) on shares of Lumentum in a research report on Wednesday, August 13th. Rosenblatt Securities reiterated a "buy" rating and set a $150.00 target price on shares of Lumentum in a research report on Thursday, August 14th. Susquehanna lifted their target price on shares of Lumentum to $125.00 and gave the stock a "positive" rating in a research report on Tuesday, August 12th. Finally, JPMorgan Chase & Co. boosted their price target on shares of Lumentum from $123.00 to $145.00 and gave the stock an "overweight" rating in a research report on Thursday, August 14th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $122.85.

Lumentum Price Performance

The company has a quick ratio of 3.18, a current ratio of 4.37 and a debt-to-equity ratio of 2.26. The business's 50-day simple moving average is $104.36 and its 200 day simple moving average is $80.76. The firm has a market capitalization of $9.38 billion, a P/E ratio of 583.37 and a beta of 1.33.

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

Insider Transactions at Lumentum

In other news, Director Alan S. Lowe sold 20,000 shares of the firm's stock in a transaction that occurred on Thursday, June 26th. The shares were sold at an average price of $93.47, for a total value of $1,869,400.00. Following the transaction, the director owned 230,471 shares in the company, valued at approximately $21,542,124.37. This trade represents a 7.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Yuen Wupen sold 3,282 shares of the firm's stock in a transaction that occurred on Monday, August 25th. The stock was sold at an average price of $119.25, for a total transaction of $391,378.50. Following the completion of the transaction, the insider owned 107,836 shares in the company, valued at $12,859,443. This represents a 2.95% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 88,102 shares of company stock valued at $8,695,992. 0.19% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Lumentum

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its position in Lumentum by 0.6% during the first quarter. Vanguard Group Inc. now owns 7,430,185 shares of the technology company's stock valued at $463,198,000 after buying an additional 47,811 shares during the period. PointState Capital LP purchased a new position in Lumentum during the first quarter valued at $213,503,000. Hood River Capital Management LLC lifted its position in Lumentum by 82.1% during the second quarter. Hood River Capital Management LLC now owns 2,206,453 shares of the technology company's stock valued at $209,745,000 after buying an additional 994,551 shares during the period. Atreides Management LP lifted its position in Lumentum by 6.8% during the first quarter. Atreides Management LP now owns 1,875,257 shares of the technology company's stock valued at $116,904,000 after buying an additional 119,938 shares during the period. Finally, Alliancebernstein L.P. lifted its position in Lumentum by 1.1% during the first quarter. Alliancebernstein L.P. now owns 1,731,041 shares of the technology company's stock valued at $107,913,000 after buying an additional 19,085 shares during the period. Hedge funds and other institutional investors own 94.05% of the company's stock.

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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