Lumentum (NASDAQ:LITE) Price Target Raised to $1,300.00 at Rosenblatt Securities

Key Points

• Rosenblatt raised its price target on Lumentum to $1,300 (from $900) and kept a buy rating, implying roughly a 30.7% upside from the current share price.
• Lumentum beat Q3 EPS ($2.37 vs. $2.27) with revenue up about 90% year‑over‑year but slightly below estimates ($808.4M vs. ~$810M), and management set Q4 FY2026 EPS guidance of $2.85–$3.05.
• Despite strong results and analyst target hikes, shares fell on valuation concerns and profit‑taking, and insiders sold material stock recently (65,775 shares worth about $38.9M) while institutional ownership is ~94%.

Lumentum (NASDAQ:LITE - Get Free Report) had its price target raised by stock analysts at Rosenblatt Securities from $900.00 to $1,300.00 in a research report issued on Wednesday,Benzinga reports. The firm currently has a "buy" rating on the technology company's stock. Rosenblatt Securities' target price would indicate a potential upside of 30.71% from the company's current price.

Several other research firms have also weighed in on LITE. B. Riley Financial reissued a "buy" rating on shares of Lumentum in a research note on Friday. Mizuho raised their price objective on Lumentum from $750.00 to $930.00 and gave the stock an "outperform" rating in a research note on Wednesday, April 8th. Bank of America raised their price objective on Lumentum to $520.00 and gave the stock a "neutral" rating in a research note on Wednesday, February 4th. Susquehanna raised their target price on Lumentum from $550.00 to $1,100.00 and gave the stock a "positive" rating in a research report on Monday, April 20th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Lumentum in a research report on Tuesday, April 21st. Thirteen investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $836.24.

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Lumentum Stock Performance

LITE opened at $994.56 on Wednesday. The firm has a market cap of $71.01 billion, a PE ratio of 305.08 and a beta of 1.53. The company has a quick ratio of 0.45, a current ratio of 0.61 and a debt-to-equity ratio of 0.06. The business has a fifty day simple moving average of $766.66 and a 200-day simple moving average of $492.31. Lumentum has a fifty-two week low of $60.38 and a fifty-two week high of $1,021.00.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, topping the consensus estimate of $2.27 by $0.10. The business had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.05 million. Lumentum had a return on equity of 17.27% and a net margin of 11.95%.The company's revenue was up 90.1% compared to the same quarter last year. During the same period last year, the company posted $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, equities analysts predict that Lumentum will post 5.87 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Yuen Wupen sold 3,157 shares of the firm's stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $538.00, for a total value of $1,698,466.00. Following the completion of the sale, the insider owned 88,439 shares of the company's stock, valued at $47,580,182. This trade represents a 3.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Penny Herscher sold 4,000 shares of the firm's stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $597.29, for a total value of $2,389,160.00. Following the completion of the sale, the director directly owned 2,057 shares of the company's stock, valued at approximately $1,228,625.53. This trade represents a 66.04% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 65,775 shares of company stock worth $38,851,343. 0.43% of the stock is currently owned by corporate insiders.

Institutional Trading of Lumentum

Institutional investors have recently bought and sold shares of the company. Hilton Head Capital Partners LLC acquired a new stake in Lumentum during the first quarter valued at $25,000. Sachetta LLC boosted its position in Lumentum by 118.8% during the first quarter. Sachetta LLC now owns 35 shares of the technology company's stock valued at $25,000 after purchasing an additional 19 shares during the last quarter. EverSource Wealth Advisors LLC boosted its position in Lumentum by 363.9% during the third quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company's stock valued at $27,000 after purchasing an additional 131 shares during the last quarter. V Square Quantitative Management LLC acquired a new stake in Lumentum during the fourth quarter valued at $28,000. Finally, Truvestments Capital LLC boosted its position in Lumentum by 300.0% during the fourth quarter. Truvestments Capital LLC now owns 76 shares of the technology company's stock valued at $28,000 after purchasing an additional 57 shares during the last quarter. Institutional investors and hedge funds own 94.05% of the company's stock.

Key Headlines Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Q3 EPS beat and strong year‑over‑year growth: Lumentum reported $2.37 EPS (above estimates) and revenue up ~90% YoY, showing strong profitability expansion vs prior year. Lumentum (LITE) Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Raised Q4 EPS guidance: Management set Q4 FY2026 EPS guidance of $2.85–$3.05, ahead of the Street, signaling continued margin strength and demand visibility. Lumentum Q3 2026 Earnings Call Transcript
• Positive Sentiment: Analysts lifting targets and reiterating buys: Stifel and Loop Capital boosted price targets (to $1,100 and $1,400 respectively), reflecting bullish analyst view on AI/data‑center demand. Stifel raises PT on Lumentum Loop Capital raises PT on Lumentum
• Neutral Sentiment: AI/data‑center narrative intact: Management and press emphasize AI-driven demand for optical components, which supports medium‑term revenue growth but is already priced into shares. Lumentum forecasts quarterly revenue above estimates on AI-driven demand
• Negative Sentiment: Shares fell despite the beat and raised guide: Market reaction was negative — investors sold into the print, likely due to valuation concerns and very high expectations after the stock's massive run. Lumentum shares tumble despite strong print and guide
• Negative Sentiment: Revenue slightly missed consensus and profit‑taking risk: Q3 revenue ($808.4M) was a hair below the ~$810M estimate and, given LITE’s ~1,444% one‑year surge, some investors rotated out on any sign of softness. Lumentum earnings top estimates, revenue light amid AI data center boom

About Lumentum

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.

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