Lumentum (NASDAQ:LITE) Upgraded at Wall Street Zen

Key Points

• Lumentum's stock rating has been upgraded from "hold" to "buy" by Wall Street Zen, reflecting positive sentiment from investment analysts.
• Analysts have increased price targets for Lumentum, with Citigroup setting a target of $165.00 and several others adjusting targets above $125.00.
• Lumentum reported a 55.9% year-over-year increase in quarterly revenue, surpassing expectations with $480.70 million in revenue and an EPS of $0.88.

Wall Street Zen upgraded shares of Lumentum (NASDAQ:LITE - Free Report) from a hold rating to a buy rating in a research report sent to investors on Sunday morning.

A number of other research analysts also recently weighed in on the company. Raymond James Financial increased their target price on Lumentum from $125.00 to $145.00 and gave the company a "strong-buy" rating in a report on Wednesday, August 13th. KGI Securities initiated coverage on Lumentum in a report on Monday, August 18th. They issued an "outperform" rating on the stock. Citigroup initiated coverage on Lumentum in a report on Friday, August 29th. They issued a "buy" rating and a $165.00 target price on the stock. Needham & Company LLC reissued a "buy" rating and issued a $145.00 target price (up previously from $135.00) on shares of Lumentum in a report on Wednesday, August 13th. Finally, Susquehanna increased their target price on Lumentum to $125.00 and gave the company a "positive" rating in a report on Tuesday, August 12th. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, Lumentum presently has a consensus rating of "Moderate Buy" and an average target price of $128.00.

Lumentum Stock Performance

LITE traded down $1.86 during midday trading on Friday, hitting $163.02. 2,953,391 shares of the company traded hands, compared to its average volume of 3,671,019. The company has a quick ratio of 3.18, a current ratio of 4.37 and a debt-to-equity ratio of 2.26. The firm has a market capitalization of $11.40 billion, a PE ratio of 708.78 and a beta of 1.42. The company's 50-day moving average is $117.36 and its 200 day moving average is $86.48. Lumentum has a 52 week low of $45.65 and a 52 week high of $168.01.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its earnings results on Tuesday, August 12th. The technology company reported $0.88 earnings per share for the quarter, beating analysts' consensus estimates of $0.79 by $0.09. Lumentum had a negative return on equity of 3.02% and a net margin of 1.57%.The company had revenue of $480.70 million for the quarter, compared to the consensus estimate of $465.27 million. During the same quarter in the prior year, the company earned $0.06 earnings per share. Lumentum's revenue was up 55.9% on a year-over-year basis. Lumentum has set its Q1 2026 guidance at 0.950-1.100 EPS. On average, research analysts expect that Lumentum will post 0.03 EPS for the current year.

Insiders Place Their Bets

In related news, SVP Jae Kim sold 4,507 shares of the stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $116.88, for a total transaction of $526,778.16. Following the completion of the sale, the senior vice president owned 33,465 shares in the company, valued at approximately $3,911,389.20. This trade represents a 11.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Wajid Ali sold 2,526 shares of the stock in a transaction dated Tuesday, August 26th. The stock was sold at an average price of $124.39, for a total value of $314,209.14. Following the sale, the chief financial officer owned 77,087 shares of the company's stock, valued at $9,588,851.93. This represents a 3.17% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 81,687 shares of company stock valued at $8,398,352. 0.19% of the stock is currently owned by corporate insiders.

Institutional Trading of Lumentum

Several institutional investors have recently made changes to their positions in LITE. Vanguard Group Inc. boosted its stake in Lumentum by 0.6% during the first quarter. Vanguard Group Inc. now owns 7,430,185 shares of the technology company's stock valued at $463,198,000 after buying an additional 47,811 shares during the last quarter. Cambridge Investment Research Advisors Inc. bought a new position in Lumentum during the first quarter valued at approximately $260,000. UMB Bank n.a. boosted its stake in Lumentum by 132.9% during the first quarter. UMB Bank n.a. now owns 785 shares of the technology company's stock valued at $49,000 after buying an additional 448 shares during the last quarter. FORA Capital LLC bought a new position in Lumentum during the first quarter valued at approximately $642,000. Finally, Principal Financial Group Inc. boosted its stake in Lumentum by 1.1% during the first quarter. Principal Financial Group Inc. now owns 159,154 shares of the technology company's stock valued at $9,922,000 after buying an additional 1,660 shares during the last quarter. Hedge funds and other institutional investors own 94.05% of the company's stock.

About Lumentum

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.