Lumentum (NASDAQ:LITE) Price Target Raised to $710.00

Key Points

• Morgan Stanley raised its price target on Lumentum from $595 to $710 but kept an "equal weight" rating, with the $710 target implying roughly a 20% downside from the stock's recent close.
• Other brokers pushed targets higher — including JPMorgan to $950 and Mizuho to $930 — leaving a consensus price target of $671 and an average rating of "Moderate Buy."
• Shares trade around $890 (market cap ~$63.6B) after Lumentum beat quarterly EPS and revenue estimates with revenue up 65.5% YoY, though insiders have been net sellers recently.

Lumentum (NASDAQ:LITE - Get Free Report) had its price target hoisted by equities research analysts at Morgan Stanley from $595.00 to $710.00 in a research report issued on Monday,Benzinga reports. The brokerage currently has an "equal weight" rating on the technology company's stock. Morgan Stanley's target price indicates a potential downside of 20.26% from the company's previous close.

LITE has been the subject of a number of other reports. Mizuho lifted 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. JPMorgan Chase & Co. boosted their target price on Lumentum to $950.00 and gave the stock an "overweight" rating in a research report on Thursday, April 9th. Stifel Nicolaus upped their price target on Lumentum to $800.00 and gave the company a "buy" rating in a research note on Monday, March 2nd. UBS Group increased their price target on shares of Lumentum from $215.00 to $455.00 and gave the company a "neutral" rating in a research report on Wednesday, February 4th. Finally, Zacks Research cut shares of Lumentum from a "strong-buy" rating to a "hold" rating in a report on Monday, April 13th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $671.00.

Lumentum Price Performance

Shares of LITE traded down $3.72 during trading hours on Monday, hitting $890.36. The stock had a trading volume of 1,031,334 shares, compared to its average volume of 5,955,852. The stock has a market capitalization of $63.57 billion, a price-to-earnings ratio of 272.36 and a beta of 1.38. Lumentum has a 52 week low of $49.13 and a 52 week high of $960.00. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.61 and a quick ratio of 0.45. The company's fifty day moving average is $710.25 and its two-hundred day moving average is $442.01.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its quarterly earnings data on Tuesday, February 3rd. The technology company reported $1.67 EPS for the quarter, topping analysts' consensus estimates of $1.41 by $0.26. The company had revenue of $665.50 million for the quarter, compared to analyst estimates of $646.74 million. Lumentum had a return on equity of 17.27% and a net margin of 11.95%.The business's revenue was up 65.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.42 earnings per share. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. On average, analysts anticipate that Lumentum will post 0.03 EPS for the current year.

Insider Buying and Selling at Lumentum

In related news, Director Penny Herscher sold 4,849 shares of the business's stock in a transaction on Friday, February 6th. The shares were sold at an average price of $535.48, for a total transaction of $2,596,542.52. Following the transaction, the director directly owned 6,057 shares in the company, valued at approximately $3,243,402.36. The trade was a 44.46% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Yuen Wupen sold 3,157 shares of the business's stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $538.00, for a total transaction of $1,698,466.00. Following the transaction, the insider owned 88,439 shares in the company, valued at $47,580,182. This represents a 3.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 65,775 shares of company stock valued at $38,851,343. Corporate insiders own 0.43% of the company's stock.

Institutional Trading of Lumentum

Several hedge funds have recently added to or reduced their stakes in LITE. EverSource Wealth Advisors LLC increased 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 worth $27,000 after acquiring an additional 131 shares during the period. V Square Quantitative Management LLC bought a new stake in shares of Lumentum during the 4th quarter valued at $28,000. Truvestments Capital LLC increased 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 worth $28,000 after purchasing an additional 57 shares during the period. Triumph Capital Management bought a new stake in Lumentum during the fourth quarter worth about $30,000. Finally, Danske Bank A S bought a new position in Lumentum in the 3rd quarter valued at about $33,000. 94.05% of the stock is owned by institutional investors and hedge funds.

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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