Lumentum (NASDAQ:LITE) Insider Sells 3,183 Shares of Stock

Key Points

• Lumentum insider Vincent Retort sold 3,183 shares for approximately $2.89 million at an average price of $909.43. The sale was executed under a pre-arranged Rule 10b5-1 plan to cover tax withholding, reducing his holdings by 2.7%.
• Lumentum reported stronger-than-expected quarterly results, with EPS of $3.23 versus a $2.97 consensus estimate and revenue of $1.01 billion, up 109.3% year over year. The company guided to fiscal Q1 2027 EPS of $4.05–$4.35.
• Despite the stock’s decline to $873.31, analyst sentiment remains favorable, with a “Moderate Buy” consensus and an average price target of $1,044.67. However, elevated valuation and recent volatility in AI-related optics stocks remain key risks.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) insider Vincent Retort sold 3,183 shares of the company's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $909.43, for a total transaction of $2,894,715.69. Following the completion of the sale, the insider directly owned 114,495 shares in the company, valued at approximately $104,125,187.85. The trade was a 2.70% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 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.

Lumentum Price Performance

NASDAQ LITE traded down $95.59 during trading hours on Tuesday, reaching $873.31. 5,992,989 shares of the company's stock were exchanged, compared to its average volume of 5,176,457. The firm has a fifty day moving average of $811.58 and a 200-day moving average of $783.10. The company has a current ratio of 1.68, a quick ratio of 1.40 and a debt-to-equity ratio of 0.01. Lumentum Holdings Inc. has a one year low of $111.20 and a one year high of $1,085.68. The stock has a market cap of $67.94 billion, a PE ratio of -10.62 and a beta of 1.50.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its earnings results on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, topping the consensus estimate of $2.97 by $0.26. The company had revenue of $1.01 billion for the quarter, compared to analysts' expectations of $987.70 million. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%.The business's revenue for the quarter was up 109.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. On average, equities research analysts predict that Lumentum Holdings Inc. will post 16.97 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several research firms have recently commented on LITE. Loop Capital lifted their target price on Lumentum from $900.00 to $1,400.00 and gave the company a "buy" rating in a research note on Tuesday, May 5th. B. Riley Financial reiterated a "buy" rating on shares of Lumentum in a report on Friday, May 1st. Weiss Ratings downgraded shares of Lumentum from a "hold (c)" rating to a "hold (c-)" rating in a research report on Wednesday, August 5th. Mizuho lifted their price target on shares of Lumentum from $1,100.00 to $1,140.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 12th. Finally, Stifel Nicolaus increased their price objective on shares of Lumentum from $800.00 to $1,100.00 and gave the company a "buy" rating in a report on Tuesday, May 5th. Thirteen analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat.com, Lumentum has an average rating of "Moderate Buy" and an average target price of $1,044.67.

Institutional Trading of Lumentum

Institutional investors have recently added to or reduced their stakes in the company. Hilton Head Capital Partners LLC acquired a new position in shares of Lumentum in the first quarter valued at about $25,000. Sachetta LLC increased its holdings in shares of Lumentum by 118.8% during the first quarter. Sachetta LLC now owns 35 shares of the technology company's stock worth $25,000 after purchasing an additional 19 shares during the period. Truvestments Capital LLC raised its position in shares of Lumentum by 300.0% in the fourth quarter. Truvestments Capital LLC now owns 76 shares of the technology company's stock valued at $28,000 after buying an additional 57 shares in the last quarter. Triumph Capital Management acquired a new stake in shares of Lumentum during the 4th quarter worth $30,000. Finally, Danske Bank A S bought a new position in shares of Lumentum in the third quarter worth $33,000. 94.05% of the stock is currently owned by institutional investors.

More Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: AI-driven growth remains the bullish case. Lumentum’s exposure to optical components used in AI data-center networks, along with expectations for rising margins and stronger fiscal 2027 earnings, continues to support the long-term growth narrative. Lumentum Stock Is Overvalued at 11.4X P/S: Should You Still Buy It?
• Positive Sentiment: Broker sentiment remains constructive. Analysts collectively assign Lumentum an average “Moderate Buy” rating, providing ongoing support despite the recent volatility. Lumentum Receives Average Rating of Moderate Buy
• Neutral Sentiment: Valuation is a central debate. At approximately 11.4 times sales, Lumentum trades at a demanding multiple after substantial multi-year gains. While a discounted-cash-flow analysis indicates potential upside, market-based valuation measures suggest the stock may already reflect considerable optimism. Lumentum Stock Looks Fully Priced Despite Cash Flow Upside
• Negative Sentiment: Risk aversion is weighing on optics stocks. Reports concerning Anthropic and a Wall Street Journal article have triggered a selloff across AI hardware names, with Lumentum among the affected optics companies. The move indicates investors are taking profits and questioning near-term AI spending or demand expectations. Optics Stocks Drop on Anthropic News
• Negative Sentiment: The recent rally has increased downside sensitivity. Lumentum had rallied alongside Coherent and AXT after indium phosphide price hikes, but the reversal shows how quickly sentiment can change when sector-wide AI concerns emerge. Optics Stocks Rally on Indium Phosphide Price Hikes

Lumentum Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source