Lumentum (NASDAQ:LITE) Raised to "Strong-Buy" at Zacks Research

Key Points

• Lumentum was upgraded by Zacks Research from hold to strong-buy, adding to a broadly positive analyst backdrop. Across coverage, the stock now has an average rating of Moderate Buy with an average target price of $1,012.43.
• The company recently reported strong quarterly results, with EPS of $2.37 beating estimates and revenue rising 90.1% year over year. Lumentum also issued Q4 2026 guidance of $2.85 to $3.05 EPS.
• Lumentum has been gaining broader market attention after being added to the Nasdaq-100, while its stock remains near recent highs despite a 2.8% decline on the day. The article also notes recent insider selling, though it was described as occurring under pre-arranged trading plans.

Lumentum (NASDAQ:LITE - Get Free Report) was upgraded by analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report issued on Wednesday,Zacks.com reports.

Other equities research analysts also recently issued reports about the stock. Mizuho set a $1,100.00 price target on shares of Lumentum in a research note on Wednesday, May 6th. Needham & Company LLC boosted their price target on shares of Lumentum from $880.00 to $1,040.00 and gave the company a "buy" rating in a research note on Tuesday, April 21st. Barclays boosted their price target on shares of Lumentum from $750.00 to $1,000.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 6th. Jefferies Financial Group reissued a "buy" rating and set a $1,200.00 price target on shares of Lumentum in a research report on Wednesday, May 6th. Finally, Morgan Stanley raised their price objective on shares of Lumentum from $710.00 to $900.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, Lumentum presently has an average rating of "Moderate Buy" and an average target price of $1,012.43.

Lumentum Trading Down 2.8%

LITE opened at $1,001.81 on Wednesday. The business's 50 day moving average price is $804.16 and its 200 day moving average price is $532.16. The stock has a market capitalization of $77.94 billion, a PE ratio of 185.52 and a beta of 1.53. Lumentum has a one year low of $71.04 and a one year high of $1,085.68. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.27 by $0.10. The business had revenue of $808.40 million for the quarter, compared to the consensus estimate of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The business's revenue was up 90.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, equities research analysts expect that Lumentum will post 6.49 EPS for the current year.

Insider Activity at Lumentum

In other Lumentum news, insider Vincent Retort sold 3,441 shares of the business's stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $545.78, for a total transaction of $1,878,028.98. Following the completion of the transaction, the insider owned 95,975 shares in the company, valued at $52,381,235.50. The trade was a 3.46% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Wajid Ali sold 5,302 shares of the business's stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $691.13, for a total transaction of $3,664,371.26. Following the transaction, the chief financial officer owned 66,287 shares of the company's stock, valued at $45,812,934.31. This trade represents a 7.41% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 29,333 shares of company stock worth $24,049,017 over the last ninety days. 0.43% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Sachetta LLC boosted its holdings in shares of Lumentum by 118.8% in the 1st quarter. Sachetta LLC now owns 35 shares of the technology company's stock valued at $25,000 after buying an additional 19 shares in the last quarter. Hilton Head Capital Partners LLC acquired a new position in shares of Lumentum in the 1st quarter valued at $25,000. Abel Hall LLC boosted its holdings in shares of Lumentum by 5.5% in the 1st quarter. Abel Hall LLC now owns 693 shares of the technology company's stock valued at $487,000 after buying an additional 36 shares in the last quarter. Checchi Capital Advisers LLC boosted its stake in Lumentum by 5.1% during the 1st quarter. Checchi Capital Advisers LLC now owns 790 shares of the technology company's stock worth $555,000 after purchasing an additional 38 shares during the period. Finally, 180 Wealth Advisors LLC boosted its stake in Lumentum by 2.9% during the 1st quarter. 180 Wealth Advisors LLC now owns 1,553 shares of the technology company's stock worth $1,092,000 after purchasing an additional 44 shares during the period. Institutional investors and hedge funds own 94.05% of the company's stock.

More Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum was added to the Nasdaq-100, which can trigger buying from index funds and boost visibility with large institutional investors. Lumentum Joins the Nasdaq-100 Index®, Achieving New Milestone in Global Growth
• Positive Sentiment: Lumentum was upgraded to Zacks Rank #1 (Strong Buy), reflecting improving earnings expectations and reinforcing momentum-buying interest. What Makes Lumentum (LITE) a New Strong Buy Stock
• Positive Sentiment: Commentary highlighted that Lumentum’s Components business is accelerating, with AI optics demand surging and key products sold out, suggesting stronger revenue potential ahead. Lumentum's Components Business Accelerates: More Upside Ahead?
• Positive Sentiment: Northland Securities raised earnings estimates for Lumentum, adding to the view that the company’s profit outlook is improving. Lumentum stock report
• Neutral Sentiment: Recent coverage also notes that Lumentum’s strong rally has pushed the stock to fresh highs, which can attract momentum buyers but also raise valuation questions.
• Neutral Sentiment: Insider selling was reported this week, but the transactions were made under pre-arranged trading plans, so they appear less likely to signal a major change in fundamentals.

Lumentum Company Profile

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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