Lumentum (NASDAQ:LITE) Shares Down 4.2% on Insider Selling

Key Points

• Lumentum shares fell 4.2% to $830.17 after three insiders sold shares totaling roughly $4.1 million. The transactions were made under pre-arranged Rule 10b5-1 plans to cover tax withholding on vested equity awards.
• Analysts remain broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $1,044.67; Morgan Stanley raised its target to $1,000, while Jefferies maintained a $1,200 target.
• Lumentum exceeded quarterly expectations with adjusted EPS of $3.23 versus the $2.97 consensus and revenue of $1.01 billion, up 109.3% year over year. Institutional investors own approximately 94.05% of the company’s shares.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) shares dropped 4.2% on Monday after an insider sold shares in the company. The stock traded as low as $784.47 and last traded at $830.17. Approximately 3,709,393 shares were traded during trading, a decline of 35% from the average session volume of 5,703,229 shares. The stock had previously closed at $866.71.

Specifically, SVP Jae Kim sold 1,904 shares of the business's stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $827.82, for a total value of $1,576,169.28. Following the sale, the senior vice president owned 42,096 shares in the company, valued at $34,847,910.72. The trade was a 4.33% decrease in their position. 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, insider Vincent Retort sold 2,483 shares of the firm's stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $827.82, for a total value of $2,055,477.06. Following the transaction, the insider owned 109,438 shares of the company's stock, valued at approximately $90,594,965.16. The trade was a 2.22% decrease in their position. 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 related news, insider Yuen Wupen sold 500 shares of the business's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $898.15, for a total value of $449,075.00. Following the sale, the insider directly owned 93,229 shares in the company, valued at approximately $83,733,626.35. The trade was a 0.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Wolfe Research restated an "outperform" rating on shares of Lumentum in a report on Friday. Morgan Stanley upped their price objective on Lumentum from $900.00 to $1,000.00 and gave the stock an "equal weight" rating in a report on Wednesday, August 12th. Jefferies Financial Group reiterated a "buy" rating and set a $1,200.00 target price on shares of Lumentum in a research report on Wednesday, May 6th. Citigroup reissued a "buy" rating on shares of Lumentum in a report on Wednesday, August 12th. Finally, TD Cowen boosted their price target on shares of Lumentum from $800.00 to $820.00 and gave the stock a "hold" rating in a research report on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $1,044.67.

Lumentum Stock Performance

The firm has a market capitalization of $74.47 billion, a PE ratio of -10.10 and a beta of 1.50. The business has a 50-day simple moving average of $809.76 and a 200-day simple moving average of $792.80. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.68 and a quick ratio of 1.40.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its earnings results on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, topping analysts' consensus estimates of $2.97 by $0.26. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%.The firm had revenue of $1.01 billion during the quarter, compared to analysts' expectations of $987.70 million. During the same quarter in the previous year, the business earned $0.88 EPS. The company's quarterly revenue was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Equities research analysts expect that Lumentum Holdings Inc. will post 19.76 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. California State Teachers Retirement System lifted its holdings in shares of Lumentum by 112,343.2% in the 2nd quarter. California State Teachers Retirement System now owns 92,237,160 shares of the technology company's stock worth $79,145,018,000 after acquiring an additional 92,155,130 shares during the last quarter. Jupiter Topco LLC bought a new position in Lumentum during the 2nd quarter valued at about $1,621,396,000. Arrowstreet Capital Limited Partnership grew its holdings in Lumentum by 18.7% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company's stock valued at $683,661,000 after purchasing an additional 291,591 shares during the last quarter. Geode Capital Management LLC raised its position in Lumentum by 9.6% in the 4th quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company's stock worth $521,563,000 after purchasing an additional 123,265 shares during the period. Finally, Situational Awareness LP lifted its stake in Lumentum by 210.9% in the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company's stock worth $478,577,000 after purchasing an additional 880,800 shares during the last quarter. 94.05% of the stock is owned by hedge funds and other institutional investors.

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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