Lumentum (NASDAQ:LITE) Shares Down 6.3% - Here's What Happened

Key Points

• Lumentum Holdings Inc. (NASDAQ:LITE) shares dropped 6.3%, trading as low as $153.03, amidst a significant volume decline compared to average trading sessions.
• Analyst ratings for Lumentum have been mixed, with a range of upgrades and downgrades leading to an average target price of $133.36 and a "Moderate Buy" rating.
• The company reported a 55.9% year-over-year revenue growth, with earnings of $0.88 per share exceeding the consensus estimate of $0.79.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) shares fell 6.3% during trading on Wednesday . The company traded as low as $153.03 and last traded at $153.59. 2,480,803 shares traded hands during mid-day trading, a decline of 10% from the average session volume of 2,765,663 shares. The stock had previously closed at $163.99.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on LITE. Wall Street Zen lowered shares of Lumentum from a "buy" rating to a "hold" rating in a research note on Monday, September 15th. Bank of America upgraded shares of Lumentum from an "underperform" rating to a "neutral" rating and upped their price target for the company from $78.00 to $135.00 in a research note on Wednesday, August 13th. B. Riley increased their target price on shares of Lumentum from $73.00 to $83.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 13th. JPMorgan Chase & Co. increased their target price on shares of Lumentum from $123.00 to $145.00 and gave the stock an "overweight" rating in a research report on Thursday, August 14th. Finally, Morgan Stanley increased their target price 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. Two investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $133.36.

Lumentum Price Performance

The company's 50 day moving average price is $127.83 and its 200-day moving average price is $91.51. The stock has a market cap of $10.70 billion, a P/E ratio of 668.17 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 released its quarterly earnings results on Tuesday, August 12th. The technology company reported $0.88 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.79 by $0.09. The firm had revenue of $480.70 million during the quarter, compared to the consensus estimate of $465.27 million. Lumentum had a net margin of 1.57% and a negative return on equity of 3.02%. The company's revenue for the quarter was up 55.9% on a year-over-year basis. During the same quarter last year, the firm earned $0.06 earnings per share. Lumentum has set its Q1 2026 guidance at 0.950-1.100 EPS. As a group, sell-side analysts expect that Lumentum Holdings Inc. will post 0.03 earnings per share for the current year.

Insider Buying and Selling at Lumentum

In related news, insider Vincent Retort sold 22,719 shares of Lumentum stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $110.00, for a total transaction of $2,499,090.00. Following the completion of the transaction, the insider owned 121,747 shares of the company's stock, valued at $13,392,170. This trade represents a 15.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Wajid Ali sold 2,526 shares of Lumentum stock in a transaction on Tuesday, August 26th. The stock was sold at an average price of $124.39, for a total transaction of $314,209.14. Following the transaction, the chief financial officer directly owned 77,087 shares of the company's stock, valued at $9,588,851.93. This represents a 3.17% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 61,687 shares of company stock valued at $6,628,952 over the last three months. 0.19% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lumentum

A number of large investors have recently bought and sold shares of the stock. Vanguard Group Inc. grew its holdings in Lumentum by 0.6% in the first quarter. Vanguard Group Inc. now owns 7,430,185 shares of the technology company's stock worth $463,198,000 after purchasing an additional 47,811 shares during the period. PointState Capital LP acquired a new stake in Lumentum in the first quarter worth $213,503,000. Hood River Capital Management LLC grew its holdings in Lumentum by 82.1% in the second quarter. Hood River Capital Management LLC now owns 2,206,453 shares of the technology company's stock worth $209,745,000 after purchasing an additional 994,551 shares during the period. Atreides Management LP grew its holdings in Lumentum by 6.8% in the first quarter. Atreides Management LP now owns 1,875,257 shares of the technology company's stock worth $116,904,000 after purchasing an additional 119,938 shares during the period. Finally, Alliancebernstein L.P. grew its holdings in Lumentum by 1.1% in the first quarter. Alliancebernstein L.P. now owns 1,731,041 shares of the technology company's stock worth $107,913,000 after purchasing an additional 19,085 shares during the period. 94.05% of the stock is currently owned by institutional investors and hedge funds.

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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