Lumentum (NASDAQ:LITE) Shares Down 2.6% - Time to Sell?

Key Points

• Shares fell 2.6% intraday to about $859.11 (low $811.45) with volume down ~11% versus average after a $881.64 close.
• Analyst sentiment is largely positive (1 Strong Buy, 10 Buy, 7 Hold) with recent target upgrades (Needham $1,040; Northland $1,000), although the MarketBeat average target is $757.25—below the current share price.
• Operationally strong but richly valued: Lumentum beat quarterly EPS and revenue estimates (EPS $1.67; revenue +65.5% y/y) and provided solid guidance, yet trades at a high P/E (~263) and insiders have sold roughly 65,775 shares (~$38.9M) over the past 90 days.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) traded down 2.6% during mid-day trading on Monday . The company traded as low as $811.45 and last traded at $859.1140. 5,265,494 shares traded hands during mid-day trading, a decline of 11% from the average session volume of 5,915,003 shares. The stock had previously closed at $881.64.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the stock. Needham & Company LLC boosted their price target on shares of Lumentum from $880.00 to $1,040.00 and gave the stock a "buy" rating in a research report on Tuesday, April 21st. Rosenblatt Securities restated a "buy" rating and issued a $900.00 price target on shares of Lumentum in a research report on Wednesday, March 18th. Zacks Research downgraded shares of Lumentum from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 13th. Northland Securities set a $1,000.00 price target on shares of Lumentum in a research report on Monday, April 20th. Finally, TD Cowen boosted their price target on shares of Lumentum from $675.00 to $875.00 and gave the stock a "hold" rating in a research report on Friday, April 10th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $757.25.

Lumentum Stock Down 2.6%

The firm's 50 day moving average price is $739.76 and its two-hundred day moving average price is $466.80. The company has a market cap of $61.34 billion, a P/E ratio of 263.53 and a beta of 1.38. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.45 and a current ratio of 0.61.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings data on Tuesday, February 3rd. The technology company reported $1.67 earnings per share for the quarter, beating the consensus estimate of $1.41 by $0.26. The company had revenue of $665.50 million during the quarter, compared to analyst estimates of $646.74 million. Lumentum had a net margin of 11.95% and a return on equity of 17.27%. Lumentum's revenue for the quarter was up 65.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.42 EPS. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. Equities research analysts anticipate that Lumentum Holdings Inc. will post 5.87 EPS for the current fiscal year.

Insider Activity at Lumentum

In other news, insider Vincent Retort sold 3,441 shares of Lumentum stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $545.78, for a total value of $1,878,028.98. Following the completion of the sale, the insider owned 95,975 shares in the company, valued at $52,381,235.50. The trade was a 3.46% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Yuen Wupen sold 3,157 shares of Lumentum stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $538.00, for a total transaction 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 represents a 3.45% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 65,775 shares of company stock worth $38,851,343. 0.43% of the stock is owned by insiders.

Institutional Trading of Lumentum

Several hedge funds have recently modified their holdings of LITE. Hilton Head Capital Partners LLC bought a new stake in shares of Lumentum in the 1st quarter worth $25,000. Parallel Advisors LLC grew its stake in Lumentum by 16.0% in the 4th quarter. Parallel Advisors LLC now owns 326 shares of the technology company's stock valued at $120,000 after purchasing an additional 45 shares during the period. Allworth Financial LP grew its stake in Lumentum by 6.4% in the 3rd quarter. Allworth Financial LP now owns 784 shares of the technology company's stock valued at $128,000 after purchasing an additional 47 shares during the period. UMB Bank n.a. grew its stake in Lumentum by 5.2% in the 4th quarter. UMB Bank n.a. now owns 968 shares of the technology company's stock valued at $357,000 after purchasing an additional 48 shares during the period. Finally, SJS Investment Consulting Inc. grew its stake in Lumentum by 687.5% in the 1st quarter. SJS Investment Consulting Inc. now owns 63 shares of the technology company's stock valued at $44,000 after purchasing an additional 55 shares during the period. Institutional investors own 94.05% of the company's stock.

Lumentum Company Profile

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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