Lumentum (NASDAQ:LITE) Sets New 52-Week High - Still a Buy?

Key Points

• Lumentum Holdings Inc. recently reached a new 52-week high, trading at $173.44, reflecting strong investor interest with a volume of over 1.4 million shares.
• Wall Street analysts have rated Lumentum positively, with a consensus rating of "Moderate Buy" and a target price of $133.36, driven by upbeat quarterly earnings that surpassed expectations.
• Recent insider sales have seen significant transactions, with an insider selling over 3,000 shares at an average price of $119.25, reducing their position by 3.04%.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) hit a new 52-week high on Wednesday . The company traded as high as $173.44 and last traded at $173.37, with a volume of 1475795 shares trading hands. The stock had previously closed at $162.71.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on LITE shares. Raymond James Financial lifted their price objective on shares of Lumentum from $125.00 to $145.00 and gave the company a "strong-buy" rating in a research note on Wednesday, August 13th. KGI Securities started coverage on shares of Lumentum in a research note on Monday, August 18th. They set an "outperform" rating on the stock. Stifel Nicolaus lifted their price objective on shares of Lumentum from $100.00 to $132.00 and gave the company a "buy" rating in a research note on Wednesday, August 13th. Morgan Stanley boosted their price target on shares of Lumentum from $92.00 to $100.00 and gave the stock an "equal weight" rating in a research report on Wednesday, August 13th. Finally, Wolfe Research assumed coverage on shares of Lumentum in a research report on Tuesday, August 12th. They issued an "outperform" rating on the stock. Two research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $133.36.

Lumentum Trading Up 5.6%

The firm's 50-day simple moving average is $133.63 and its 200 day simple moving average is $94.92. The stock has a market capitalization of $12.01 billion, a P/E ratio of 745.92 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 issued its quarterly earnings results 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. The firm had revenue of $480.70 million for the quarter, compared to analysts' expectations 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% on a year-over-year basis. During the same quarter last year, the business posted $0.06 EPS. Lumentum has set its Q1 2026 guidance at 0.950-1.100 EPS. Equities research analysts anticipate that Lumentum Holdings Inc. will post 0.03 EPS for the current fiscal year.

Insider Transactions at Lumentum

In related news, insider Yuen Wupen sold 3,282 shares of Lumentum stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $119.25, for a total value of $391,378.50. Following the transaction, the insider owned 104,554 shares of the company's stock, valued at approximately $12,468,064.50. This trade represents a 3.04% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Julia Suzanne Johnson sold 1,250 shares of Lumentum stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $119.06, for a total value of $148,825.00. Following the transaction, the director directly owned 22,037 shares in the company, valued at approximately $2,623,725.22. This trade represents a 5.37% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 41,687 shares of company stock worth $4,759,552 in the last three months. Insiders own 0.19% of the company's stock.

Hedge Funds Weigh In On Lumentum

Institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. grew its stake in Lumentum by 0.6% during the 1st quarter. Vanguard Group Inc. now owns 7,430,185 shares of the technology company's stock valued at $463,198,000 after acquiring an additional 47,811 shares in the last quarter. Cambridge Investment Research Advisors Inc. purchased a new position in Lumentum during the 1st quarter valued at about $260,000. UMB Bank n.a. grew its stake in Lumentum by 132.9% during the 1st quarter. UMB Bank n.a. now owns 785 shares of the technology company's stock valued at $49,000 after acquiring an additional 448 shares in the last quarter. FORA Capital LLC purchased a new position in Lumentum during the 1st quarter valued at about $642,000. Finally, Principal Financial Group Inc. grew its stake in Lumentum by 1.1% during the 1st quarter. Principal Financial Group Inc. now owns 159,154 shares of the technology company's stock valued at $9,922,000 after acquiring an additional 1,660 shares in the last quarter. Hedge funds and other institutional investors 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.

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