Lumentum's (LITE) Neutral Rating Reiterated at UBS Group

Key Points

• The price target for Lumentum has been raised by UBS Group from $78.00 to $130.00, indicating a potential upside of 7.68% from the stock's previous close.
• Multiple analysts have recently increased their target prices for Lumentum, with Raymond James raising it to $145.00 and Needham & Company boosting it to $145.00 as well, reflecting growing confidence in the company.
• Lumentum reported a 55.9% increase in revenue year-over-year, achieving $480.70 million for the quarter and an earnings per share of $0.88, surpassing expectations.

Lumentum (NASDAQ:LITE - Get Free Report)'s stock had its "neutral" rating reiterated by UBS Group in a note issued to investors on Wednesday, MarketBeat.com reports. They currently have a $130.00 price target on the technology company's stock, up from their previous price target of $78.00. UBS Group's target price indicates a potential upside of 13.41% from the stock's previous close.

A number of other equities research analysts also recently issued reports on the stock. Barclays lifted their price target on shares of Lumentum from $75.00 to $135.00 and gave the company an "overweight" rating in a research report on Wednesday. Northland Securities set a $80.00 price target on shares of Lumentum in a research report on Wednesday, May 7th. Needham & Company LLC reissued a "buy" rating and set a $145.00 price objective (up from $135.00) on shares of Lumentum in a research note on Wednesday. Morgan Stanley raised their price objective on shares of Lumentum from $92.00 to $100.00 and gave the stock an "equal weight" rating in a research note on Wednesday. Finally, Bank of America raised shares of Lumentum from an "underperform" rating to a "neutral" rating and raised their price objective for the stock from $78.00 to $135.00 in a research note on Wednesday. Four research analysts have rated the stock with a hold rating, eleven have given a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $116.47.

Lumentum Stock Performance

NASDAQ:LITE traded up $0.01 during mid-day trading on Wednesday, reaching $114.63. The stock had a trading volume of 1,603,688 shares, compared to its average volume of 2,577,082. 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 firm has a market capitalization of $7.96 billion, a price-to-earnings ratio of 498.15 and a beta of 1.33. Lumentum has a twelve month low of $45.65 and a twelve month high of $129.98. The business has a 50 day simple moving average of $97.91 and a 200 day simple moving average of $78.58.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its quarterly earnings results on Tuesday, August 12th. The technology company reported $0.88 earnings per share (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 company had revenue of $480.70 million during the quarter, compared to the consensus estimate of $465.27 million. During the same period last year, the firm earned $0.06 EPS. The company's revenue for the quarter was up 55.9% on a year-over-year basis. On average, analysts expect that Lumentum will post 0.03 earnings per share for the current fiscal year.

Insider Buying and Selling at Lumentum

In related news, Director Alan S. Lowe sold 20,000 shares of Lumentum stock in a transaction on Thursday, June 26th. The shares were sold at an average price of $93.47, for a total transaction of $1,869,400.00. Following 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 transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Yuen Wupen sold 265 shares of Lumentum stock in a transaction on Wednesday, July 23rd. The shares were sold at an average price of $99.92, for a total transaction of $26,478.80. Following the transaction, the insider owned 79,773 shares in the company, valued at $7,970,918.16. The trade was a 0.33% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 76,000 shares of company stock worth $7,260,909. Insiders own 0.19% of the company's stock.

Hedge Funds Weigh In On Lumentum

Institutional investors have recently added to or reduced their stakes in the company. Skandinaviska Enskilda Banken AB publ acquired a new position in Lumentum in the 1st quarter worth $25,000. Rakuten Securities Inc. increased its position in shares of Lumentum by 164.4% in the 1st quarter. Rakuten Securities Inc. now owns 476 shares of the technology company's stock worth $30,000 after purchasing an additional 296 shares during the last quarter. Golden State Wealth Management LLC increased its position in shares of Lumentum by 103.2% in the 1st quarter. Golden State Wealth Management LLC now owns 512 shares of the technology company's stock worth $32,000 after purchasing an additional 260 shares during the last quarter. CoreCap Advisors LLC increased its position in shares of Lumentum by 2,235.3% in the 4th quarter. CoreCap Advisors LLC now owns 397 shares of the technology company's stock worth $33,000 after purchasing an additional 380 shares during the last quarter. Finally, FNY Investment Advisers LLC bought a new stake in shares of Lumentum in the 2nd quarter worth about $38,000. Institutional investors and hedge funds 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.