Lumentum (NASDAQ:LITE) Reaches New 12-Month High on Analyst Upgrade

Key Points

• Lumentum shares hit a new 52-week high after Citic Securities sharply raised its price target from $620 to $1,186, with the stock trading as high as $1,072.70 intraday.
• Several other analysts also lifted targets on the name, including Barclays, Rosenblatt, UBS, and TD Cowen, contributing to a consensus rating of Moderate Buy and an average target price of $1,012.43.
• The company posted strong quarterly results, reporting $2.37 EPS versus $2.27 expected and 90.1% year-over-year revenue growth, while insiders recently sold shares and institutional investors remain heavily invested.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s stock price hit a new 52-week high on Monday after Citic Securities raised their price target on the stock from $620.00 to $1,186.00. The company traded as high as $1,072.70 and last traded at $1,061.4340, with a volume of 5711970 shares trading hands. The stock had previously closed at $903.80.

A number of other research firms have also commented on LITE. Barclays boosted their price objective on Lumentum from $750.00 to $1,000.00 and gave the stock an "equal weight" rating in a research note on Wednesday, May 6th. Rosenblatt Securities boosted their price objective on Lumentum from $900.00 to $1,300.00 and gave the stock a "buy" rating in a research note on Wednesday, May 6th. Raymond James Financial reissued an "outperform" rating and issued a $1,014.00 price objective on shares of Lumentum in a research note on Wednesday. UBS Group boosted their price objective on Lumentum from $455.00 to $960.00 and gave the stock a "neutral" rating in a research note on Wednesday. Finally, TD Cowen boosted their price objective on Lumentum from $875.00 to $995.00 and gave the stock a "hold" rating in a research note on Wednesday. Thirteen equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, Lumentum has a consensus rating of "Moderate Buy" and an average target price of $1,012.43.

Insiders Place Their Bets

In other Lumentum news, CFO Wajid Ali sold 5,302 shares of the stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $691.13, for a total value of $3,664,371.26. Following the completion of the sale, the chief financial officer directly owned 66,287 shares in the company, valued at $45,812,934.31. This represents a 7.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Yuen Wupen sold 3,157 shares of the stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $538.00, for a total value of $1,698,466.00. Following the completion of the sale, the insider owned 88,439 shares of the company's stock, valued at $47,580,182. This trade represents a 3.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 60,926 shares of company stock valued at $36,254,801 over the last ninety days. 0.43% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of LITE. Arrowstreet Capital Limited Partnership grew its holdings in shares of Lumentum by 8,579.2% during the third quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company's stock worth $254,350,000 after buying an additional 1,545,199 shares in the last quarter. Norges Bank bought a new position in shares of Lumentum during the fourth quarter worth about $474,495,000. Value Aligned Research Advisors LLC bought a new position in shares of Lumentum during the fourth quarter worth about $432,062,000. Situational Awareness LP grew its holdings in shares of Lumentum by 210.9% during the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company's stock worth $478,577,000 after buying an additional 880,800 shares in the last quarter. Finally, Assenagon Asset Management S.A. grew its holdings in shares of Lumentum by 707.0% during the fourth quarter. Assenagon Asset Management S.A. now owns 994,478 shares of the technology company's stock worth $366,555,000 after buying an additional 871,249 shares in the last quarter. 94.05% of the stock is currently owned by institutional investors.

Lumentum Stock Performance

The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01. The firm has a market capitalization of $82.78 billion, a P/E ratio of 197.05 and a beta of 1.53. The stock has a fifty day moving average of $776.13 and a 200-day moving average of $502.93.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.27 by $0.10. The business had revenue of $808.40 million during the quarter, compared to the consensus estimate of $810.21 million. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.Lumentum's quarterly revenue was up 90.1% on a year-over-year basis. During the same period last year, the company earned $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, research analysts anticipate that Lumentum Holdings Inc. will post 5.95 EPS for the current year.

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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