Lumentum (NASDAQ:LITE) Lowered to "Hold" Rating by Wall Street Zen

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.

Lumentum (NASDAQ:LITE - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Monday.

Several other research analysts also recently commented on the company. Stifel Nicolaus lifted their target price on Lumentum from $100.00 to $132.00 and gave the stock a "buy" rating in a report on Wednesday, August 13th. Susquehanna lifted their target price on Lumentum to $125.00 and gave the stock a "positive" rating in a report on Tuesday, August 12th. UBS Group lifted their target price on Lumentum from $78.00 to $130.00 and gave the stock a "neutral" rating in a report on Wednesday, August 13th. Morgan Stanley lifted their target price on Lumentum from $92.00 to $100.00 and gave the stock an "equal weight" rating in a report on Wednesday, August 13th. Finally, Bank of America raised Lumentum from an "underperform" rating to a "neutral" rating and lifted their target price for the stock from $78.00 to $135.00 in a report on Wednesday, August 13th. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, Lumentum presently has a consensus rating of "Moderate Buy" and an average price target of $128.00.

Lumentum Trading Down 1.1%

NASDAQ LITE opened at $163.02 on Monday. The company has a quick ratio of 3.18, a current ratio of 4.37 and a debt-to-equity ratio of 2.26. Lumentum has a twelve month low of $45.65 and a twelve month high of $168.01. The company has a market cap of $11.40 billion, a price-to-earnings ratio of 708.78 and a beta of 1.42. The business's fifty day moving average is $117.36 and its 200 day moving average is $86.70.

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

Insider Buying and Selling

In related news, SVP Jae Kim sold 4,507 shares of the company's stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $116.88, for a total transaction of $526,778.16. Following the transaction, the senior vice president directly owned 33,465 shares of the company's stock, valued at approximately $3,911,389.20. This represents a 11.87% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Alan S. Lowe sold 20,000 shares of the 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 in the company, valued at approximately $21,542,124.37. The trade was a 7.98% decrease in their position. The disclosure for this sale can be found here. Insiders sold 81,687 shares of company stock worth $8,398,352 over the last three months. Insiders own 0.19% of the company's stock.

Institutional Trading of Lumentum

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in LITE. Quantinno Capital Management LP increased its holdings in Lumentum by 69.7% during the 4th quarter. Quantinno Capital Management LP now owns 5,470 shares of the technology company's stock worth $459,000 after purchasing an additional 2,246 shares in the last quarter. ProShare Advisors LLC purchased a new position in Lumentum in the fourth quarter valued at approximately $270,000. Sherbrooke Park Advisers LLC purchased a new position in Lumentum in the fourth quarter valued at approximately $227,000. Toronto Dominion Bank purchased a new position in Lumentum in the fourth quarter valued at approximately $965,000. Finally, Tidal Investments LLC lifted its stake in Lumentum by 3.1% in the fourth quarter. Tidal Investments LLC now owns 19,243 shares of the technology company's stock valued at $1,615,000 after purchasing an additional 574 shares during the last quarter. 94.05% of the stock is owned by 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.

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