Lumentum (NASDAQ:LITE) Stock Rating Upgraded by Wall Street Zen

Key Points

• Lumentum's rating has been upgraded from "hold" to "buy" by Wall Street Zen, signaling increased investor confidence in the stock.
• Analysts have raised Lumentum's price targets significantly, with UBS aiming for $130.00 and Rosenblatt Securities setting a target of $150.00.
• The company's quarterly revenue reached $480.70 million, surpassing expectations and showing a 55.9% year-over-year increase.

Wall Street Zen upgraded shares of Lumentum (NASDAQ:LITE - Free Report) from a hold rating to a buy rating in a research note released on Saturday.

Several other research analysts have also recently weighed in on LITE. JPMorgan Chase & Co. increased their price target on shares of Lumentum from $123.00 to $145.00 and gave the company an "overweight" rating in a report on Thursday. Raymond James Financial boosted their target price on shares of Lumentum from $125.00 to $145.00 and gave the stock a "strong-buy" rating in a research report on Wednesday. Needham & Company LLC boosted their target price on shares of Lumentum from $135.00 to $145.00 and gave the company a "buy" rating in a research note on Wednesday. Bank of America raised shares of Lumentum from an "underperform" rating to a "neutral" rating and increased their target price for the company from $78.00 to $135.00 in a report on Wednesday. Finally, Morgan Stanley lifted their price target on shares of Lumentum from $92.00 to $100.00 and gave the stock an "equal weight" rating in a research note on Wednesday. Four analysts have rated the stock with a hold rating, eleven have issued a buy rating and two have given a strong buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $124.00.

Lumentum Stock Up 1.1%

LITE traded up $1.24 during trading on Friday, reaching $115.86. 3,164,639 shares of the stock traded hands, compared to its average volume of 2,960,562. Lumentum has a fifty-two week low of $45.65 and a fifty-two week high of $129.98. The stock's 50-day simple moving average is $98.59 and its two-hundred day simple moving average is $78.82. The company has a debt-to-equity ratio of 2.26, a current ratio of 4.37 and a quick ratio of 3.18. The stock has a market cap of $8.04 billion, a price-to-earnings ratio of 503.74 and a beta of 1.33.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its earnings results on Tuesday, August 12th. The technology company reported $0.88 EPS for the quarter, topping the consensus estimate of $0.79 by $0.09. The business had revenue of $480.70 million for the quarter, compared to the consensus estimate of $465.27 million. Lumentum had a negative return on equity of 3.02% and a net margin of 1.57%. Lumentum's revenue was up 55.9% compared to the same quarter last year. During the same period in the previous year, the business earned $0.06 EPS. As a group, equities research analysts expect that Lumentum will post 0.03 EPS for the current year.

Insider Buying and Selling at Lumentum

In other news, CFO Wajid Ali sold 2,222 shares of the business's stock in a transaction that occurred on Wednesday, June 4th. The shares were sold at an average price of $83.58, for a total value of $185,714.76. Following the sale, the chief financial officer directly owned 47,460 shares of the company's stock, valued at approximately $3,966,706.80. The trade was a 4.47% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Vincent Retort sold 22,719 shares of the stock in a transaction dated Tuesday, July 29th. The shares were sold at an average price of $110.00, for a total transaction of $2,499,090.00. Following the completion of the transaction, the insider owned 121,747 shares of the company's stock, valued at $13,392,170. This represents a 15.73% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 76,000 shares of company stock worth $7,260,909 in the last ninety days. 0.19% of the stock is owned by company insiders.

Institutional Investors Weigh In On Lumentum

Institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its position in Lumentum by 0.6% in the first quarter. Vanguard Group Inc. now owns 7,430,185 shares of the technology company's stock worth $463,198,000 after purchasing an additional 47,811 shares during the period. Capital World Investors boosted its holdings in Lumentum by 108.3% in the fourth quarter. Capital World Investors now owns 3,600,132 shares of the technology company's stock worth $302,231,000 after acquiring an additional 1,871,572 shares in the last quarter. PointState Capital LP bought a new stake in Lumentum during the first quarter worth $213,503,000. Hood River Capital Management LLC grew its position in Lumentum by 82.1% during the second quarter. Hood River Capital Management LLC now owns 2,206,453 shares of the technology company's stock worth $209,745,000 after buying an additional 994,551 shares in the last quarter. Finally, Atreides Management LP lifted its stake in shares of Lumentum by 6.8% in the 1st quarter. Atreides Management LP now owns 1,875,257 shares of the technology company's stock valued at $116,904,000 after acquiring an additional 119,938 shares during the last quarter. 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.