Lumentum (NASDAQ:LITE) Hits New 12-Month High - What's Next?

Key Points

• Lumentum Holdings Inc. reached a new 52-week high of $171.48, closing last at $168.77, with over 3.8 million shares traded.
• Analyst recommendations for Lumentum have been largely positive, with multiple firms upgrading their ratings and target prices, resulting in a consensus rating of "Moderate Buy".
• The company reported a 55.9% year-over-year revenue increase with $480.70 million for the latest quarter, surpassing analyst expectations.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $171.48 and last traded at $168.77, with a volume of 3857815 shares. The stock had previously closed at $163.02.

Analyst Ratings Changes

LITE has been the subject of several research analyst reports. Raymond James Financial increased their price objective on Lumentum from $125.00 to $145.00 and gave the company a "strong-buy" rating in a report on Wednesday, August 13th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $150.00 price objective on shares of Lumentum in a research note on Thursday, August 14th. Wolfe Research began coverage on Lumentum in a report on Tuesday, August 12th. They set an "outperform" rating on the stock. Barclays lifted their target price on Lumentum from $135.00 to $165.00 and gave the company an "overweight" rating in a report on Tuesday, September 9th. Finally, B. Riley raised their price objective on Lumentum from $73.00 to $83.00 and gave the company a "neutral" rating in a research report on Wednesday, August 13th. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Lumentum has a consensus rating of "Moderate Buy" and an average price target of $128.00.

Lumentum Stock Down 1.6%

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 firm has a market cap of $11.79 billion, a PE ratio of 733.61 and a beta of 1.42. The business has a fifty day moving average price of $125.06 and a two-hundred day moving average price of $89.93.

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

Insider Activity at Lumentum

In related news, 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 value of $2,499,090.00. Following the completion of the sale, the insider owned 121,747 shares in the company, valued at approximately $13,392,170. This trade represents a 15.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Wajid Ali sold 2,526 shares of the firm's stock in a transaction that occurred on Tuesday, August 26th. The stock was sold at an average price of $124.39, for a total transaction of $314,209.14. Following the sale, the chief financial officer directly owned 77,087 shares of the company's stock, valued at approximately $9,588,851.93. The trade was a 3.17% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 61,687 shares of company stock valued at $6,628,952. 0.19% of the stock is owned by corporate insiders.

Institutional Trading of Lumentum

A number of institutional investors have recently bought and sold shares of the business. PointState Capital LP acquired a new position in Lumentum in the 1st quarter worth $213,503,000. Hood River Capital Management LLC raised its position in shares of Lumentum by 82.1% in the second quarter. Hood River Capital Management LLC now owns 2,206,453 shares of the technology company's stock valued at $209,745,000 after buying an additional 994,551 shares in the last quarter. Analog Century Management LP bought a new position in Lumentum in the first quarter valued at approximately $60,348,000. Norges Bank bought a new position in Lumentum in the second quarter valued at approximately $82,983,000. Finally, Channing Capital Management LLC bought a new position in shares of Lumentum in the 1st quarter valued at $36,715,000. Institutional investors and hedge funds 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.