Wall Street Zen Downgrades Lumentum (NASDAQ:LITE) to Hold

Key Points

• Lumentum's stock was downgraded from a "buy" to a "hold" rating by Wall Street Zen, reflecting a shift in analysts' sentiment.
• Despite the downgrade, several analysts increased their target prices for Lumentum, with a consensus rating of "Moderate Buy" and an average price target of $128.00.
• Lumentum reported a net revenue of $480.70 million for the last quarter, a 55.9% increase year-over-year, and EPS that beat consensus estimates by $0.09.

Wall Street Zen downgraded shares of Lumentum (NASDAQ:LITE - Free Report) from a buy rating to a hold rating in a research report released on Monday morning.

Several other research firms have also issued reports on LITE. B. Riley lifted their target price on shares of Lumentum from $73.00 to $83.00 and gave the company a "neutral" rating in a report on Wednesday, August 13th. JPMorgan Chase & Co. lifted their target price on shares of Lumentum from $123.00 to $145.00 and gave the company an "overweight" rating in a report on Thursday, August 14th. Stifel Nicolaus lifted their target price on shares of Lumentum from $100.00 to $132.00 and gave the company a "buy" rating in a report on Wednesday, August 13th. UBS Group lifted their target price on shares of Lumentum from $78.00 to $130.00 and gave the company a "neutral" rating in a report on Wednesday, August 13th. Finally, Morgan Stanley lifted their target price on shares of Lumentum from $92.00 to $100.00 and gave the company an "equal weight" rating in a report on Wednesday, August 13th. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $128.00.

Lumentum Stock Down 1.6%

Lumentum stock traded down $2.77 during trading hours on Monday, hitting $168.73. 4,446,450 shares of the stock traded hands, compared to its average volume of 3,854,425. The firm's 50-day moving average price is $125.06 and its two-hundred day moving average price is $89.93. The company has a current ratio of 4.37, a quick ratio of 3.18 and a debt-to-equity ratio of 2.26. The company has a market cap of $11.79 billion, a PE ratio of 733.61 and a beta of 1.42. Lumentum has a one year low of $45.65 and a one year high of $173.38.

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

Insider Buying and Selling at Lumentum

In other Lumentum news, CFO Wajid Ali sold 2,526 shares of the business's stock in a transaction on Tuesday, August 26th. The shares were sold at an average price of $124.39, for a total transaction of $314,209.14. Following the completion of the sale, the chief financial officer directly owned 77,087 shares in the company, valued at approximately $9,588,851.93. The trade was a 3.17% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Vincent Retort sold 22,719 shares of the business's stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $110.00, for a total transaction of $2,499,090.00. Following the sale, the insider owned 121,747 shares of the company's stock, valued at approximately $13,392,170. This represents a 15.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 61,687 shares of company stock worth $6,628,952. 0.19% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Lumentum

Hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its stake in Lumentum by 0.6% during the 1st 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 last quarter. Cambridge Investment Research Advisors Inc. bought a new stake in shares of Lumentum during the 1st quarter valued at $260,000. UMB Bank n.a. grew its position in shares of Lumentum by 132.9% during the 1st quarter. UMB Bank n.a. now owns 785 shares of the technology company's stock valued at $49,000 after acquiring an additional 448 shares during the period. FORA Capital LLC bought a new stake in shares of Lumentum during the 1st quarter valued at $642,000. Finally, Principal Financial Group Inc. grew its position in shares of Lumentum by 1.1% during the 1st quarter. Principal Financial Group Inc. now owns 159,154 shares of the technology company's stock valued at $9,922,000 after acquiring an additional 1,660 shares during the period. 94.05% of the stock is currently 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.