Lumentum (NASDAQ:LITE) Shares Down 2.5% on Insider Selling

Key Points

• Lumentum shares fell 2.5% after insider selling surfaced, with the stock trading down from its prior close as volume came in below average.
• CFO Wajid Ali, SVP Jae Kim, and insider Vincent Retort each sold shares under pre-arranged Rule 10b5-1 plans, and the transactions were tied to tax withholding on vested equity awards rather than a discretionary sell-off.
• Despite the stock dip, analysts remain constructive: multiple firms recently raised price targets, and MarketBeat says Lumentum carries a Moderate Buy consensus with an average target of about $1,012.43.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s stock price was down 2.5% during mid-day trading on Wednesday after an insider sold shares in the company. The stock traded as low as $856.23 and last traded at $868.07. Approximately 5,115,853 shares changed hands during mid-day trading, a decline of 15% from the average daily volume of 6,023,044 shares. The stock had previously closed at $890.09.

Specifically, CFO Wajid Ali sold 2,487 shares of the stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $2,372,473.65. Following the transaction, the chief financial officer owned 60,951 shares of the company's stock, valued at $58,144,206.45. This represents a 3.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Jae Kim sold 1,422 shares of Lumentum stock in a transaction on Monday, May 18th. The shares were sold at an average price of $953.95, for a total value of $1,356,516.90. Following the sale, the senior vice president directly owned 32,333 shares of the company's stock, valued at approximately $30,844,065.35. This trade represents a 4.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In other news, insider Vincent Retort sold 3,183 shares of the firm's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $953.95, for a total transaction of $3,036,422.85. Following the transaction, the insider owned 89,563 shares in the company, valued at approximately $85,438,623.85. This trade represents a 3.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Analyst Ratings Changes

A number of research analysts have commented on the stock. Barclays raised their target price on shares of Lumentum from $750.00 to $1,000.00 and gave the company an "equal weight" rating in a research report on Wednesday, May 6th. Stifel Nicolaus raised their price target on shares of Lumentum from $800.00 to $1,100.00 and gave the stock a "buy" rating in a research report on Tuesday, May 5th. B. Riley Financial reissued a "buy" rating on shares of Lumentum in a research report on Friday, May 1st. Citic Securities raised their price target on shares of Lumentum from $620.00 to $1,186.00 in a research report on Monday, May 11th. Finally, Bank of America raised their price target on shares of Lumentum to $520.00 and gave the stock a "neutral" rating in a research report on Wednesday, February 4th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, Lumentum presently has an average rating of "Moderate Buy" and a consensus target price of $1,012.43.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Zacks named Lumentum one of its top momentum stocks and added it to its Strong Buy momentum list, reinforcing the view that recent price strength may continue. Best Momentum Stocks to Buy for May 20th
• Positive Sentiment: Another momentum-focused note highlighted Lumentum as a strong pick for trend investors, suggesting continued enthusiasm around the stock’s technical strength. Are You Looking for a Top Momentum Pick? Why Lumentum (LITE) is a Great Choice
• Positive Sentiment: Seeking Alpha said Lumentum is positioned for growth because demand for its photonic products tied to AI and data center infrastructure remains strong, with key products sold out or capacity-constrained. Lumentum: Priced For Growth, But Not For What Comes Next - Double Growth Cycles
• Neutral Sentiment: Insider sales by the CFO and multiple executives were disclosed, but the trades were pre-planned 10b5-1 sales tied to tax withholding from equity vesting, making them more of a sentiment overhang than a fundamental warning. SEC filing for Wajid Ali sale
• Neutral Sentiment: The company’s recent earnings beat and upbeat guidance continue to support the longer-term story, but these results were already known and are not a fresh catalyst today. Lumentum's 1,500% Run and Nvidia's $2 Billion Deal: What Comes Next?
• Negative Sentiment: Some articles noted that Lumentum fell along with other AI optics names as investors took profits after a sharp run-up, which may be contributing to short-term pressure. Applied Optoelectronics Slumps 10%, Lumentum Dives 9%, Coherent Drops 6% as AI Optics Profit-Takers Strike

Lumentum Stock Performance

The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01. The firm's fifty day moving average price is $821.27 and its two-hundred day moving average price is $547.23. The stock has a market capitalization of $67.54 billion, a PE ratio of 160.75 and a beta of 1.53.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, beating the consensus estimate of $2.27 by $0.10. The company had revenue of $808.40 million for the quarter, compared to analyst estimates of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The firm's revenue was up 90.1% on a year-over-year basis. During the same quarter last year, the business earned $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, equities research analysts forecast that Lumentum Holdings Inc. will post 6.49 EPS for the current year.

Hedge Funds Weigh In On Lumentum

Several institutional investors and hedge funds have recently modified their holdings of LITE. Sachetta LLC boosted its position in Lumentum by 118.8% during the first quarter. Sachetta LLC now owns 35 shares of the technology company's stock worth $25,000 after purchasing an additional 19 shares in the last quarter. Hilton Head Capital Partners LLC purchased a new stake in shares of Lumentum in the first quarter valued at approximately $25,000. Abel Hall LLC raised its stake in shares of Lumentum by 5.5% during the 1st quarter. Abel Hall LLC now owns 693 shares of the technology company's stock worth $487,000 after buying an additional 36 shares during the period. Checchi Capital Advisers LLC raised its stake in shares of Lumentum by 5.1% during the 1st quarter. Checchi Capital Advisers LLC now owns 790 shares of the technology company's stock worth $555,000 after buying an additional 38 shares during the period. Finally, 180 Wealth Advisors LLC lifted its position in shares of Lumentum by 2.9% during the 1st quarter. 180 Wealth Advisors LLC now owns 1,553 shares of the technology company's stock valued at $1,092,000 after buying an additional 44 shares in the last quarter. Hedge funds and other institutional investors own 94.05% of the company's stock.

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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