Lumentum (NASDAQ:LITE) Sets New 1-Year High - Time to Buy?

Key Points

• Lumentum Holdings Inc. (NASDAQ:LITE) reached a new 52-week high of $180.39, closing at $179.79 with a trading volume of over 1.88 million shares.
• A recent analysis upgraded Lumentum from a "hold" to a "buy" rating, reflecting positive sentiment with a consensus price target of $144.07 among analysts.
• The company's quarterly earnings exceeded expectations, reporting $0.88 earnings per share against an estimated $0.79, showcasing a 55.9% year-over-year revenue increase.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Friday . The stock traded as high as $180.39 and last traded at $179.79, with a volume of 1885612 shares traded. The stock had previously closed at $168.50.

Analyst Ratings Changes

A number of research firms have weighed in on LITE. Wall Street Zen upgraded Lumentum from a "hold" rating to a "buy" rating in a research report on Friday, September 26th. KGI Securities started coverage on Lumentum in a research note on Monday, August 18th. They set an "outperform" rating on the stock. Bank of America raised Lumentum from an "underperform" rating to a "neutral" rating and raised their price objective for the company from $78.00 to $135.00 in a research note on Wednesday, August 13th. B. Riley raised their price objective on Lumentum from $73.00 to $83.00 and gave the company a "neutral" rating in a research note on Wednesday, August 13th. Finally, Barclays reaffirmed an "equal weight" rating and set a $165.00 price objective on shares of Lumentum in a research note on Monday. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, Lumentum presently has a consensus rating of "Moderate Buy" and a consensus price target of $144.07.

Lumentum Stock Up 6.6%

The company's fifty day moving average price is $151.00 and its 200-day moving average price is $106.16. The stock has a market capitalization of $12.74 billion, a PE ratio of 781.85 and a beta of 1.42. The company has a quick ratio of 3.18, a current ratio of 4.37 and a debt-to-equity ratio of 2.26.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its quarterly earnings data on Tuesday, August 12th. The technology company reported $0.88 earnings per share 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 analyst estimates of $465.27 million. During the same period in the previous year, the business earned $0.06 EPS. The firm's revenue for the quarter was up 55.9% on a year-over-year basis. Lumentum has set its Q1 2026 guidance at 0.950-1.100 EPS. Analysts forecast that Lumentum Holdings Inc. will post 0.03 earnings per share for the current year.

Insiders Place Their Bets

In other Lumentum news, insider Yuen Wupen sold 3,281 shares of the business's stock in a transaction on Wednesday, August 27th. The shares were sold at an average price of $124.86, for a total value of $409,665.66. Following the sale, the insider owned 101,273 shares in the company, valued at $12,644,946.78. The trade was a 3.14% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Vincent Retort sold 22,719 shares of the stock in a transaction dated Tuesday, July 29th. The stock was sold at an average price of $110.00, for a total transaction of $2,499,090.00. Following the completion of the sale, the insider directly owned 121,747 shares in the company, valued at $13,392,170. This trade represents a 15.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 41,158 shares of company stock worth $4,706,087. 0.43% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Lumentum

A number of hedge funds and other institutional investors have recently bought and sold shares of LITE. Skandinaviska Enskilda Banken AB publ purchased a new position in shares of Lumentum in the first quarter worth $25,000. Golden State Wealth Management LLC raised its holdings in shares of Lumentum by 103.2% during the first quarter. Golden State Wealth Management LLC now owns 512 shares of the technology company's stock worth $32,000 after purchasing an additional 260 shares during the last quarter. FNY Investment Advisers LLC acquired a new stake in Lumentum during the second quarter valued at $38,000. SVB Wealth LLC acquired a new stake in Lumentum during the first quarter valued at $40,000. Finally, MAI Capital Management increased its stake in shares of Lumentum by 27.0% during the second quarter. MAI Capital Management now owns 452 shares of the technology company's stock worth $43,000 after purchasing an additional 96 shares in 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.

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