Lumentum (NASDAQ:LITE) Shares Down 7.8% - Here's What Happened

Key Points

• Lumentum shares fell 7.8% in mid-day trading, dropping from a prior close of $861.97 to around $794.97 after trading as low as $775.04.
• Despite the stock pullback, analysts remain generally upbeat: the company has a Moderate Buy consensus and an average price target of $1,021.95, with several firms recently raising targets.
• Lumentum’s latest earnings beat expectations, posting $2.37 EPS versus $2.27 expected and revenue up 90.1% year over year, while insiders also sold shares under pre-arranged trading plans in recent weeks.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) dropped 7.8% during mid-day trading on Friday . The stock traded as low as $775.04 and last traded at $794.9720. Approximately 1,152,126 shares traded hands during mid-day trading, a decline of 81% from the average session volume of 5,943,965 shares. The stock had previously closed at $861.97.

Wall Street Analyst Weigh In

LITE has been the topic of a number of research analyst reports. Mizuho set a $1,100.00 price target on Lumentum in a research note on Wednesday, May 6th. Loop Capital lifted their price target on Lumentum from $900.00 to $1,400.00 and gave the stock a "buy" rating in a research report on Tuesday, May 5th. Jefferies Financial Group reiterated a "buy" rating and issued a $1,200.00 price target on shares of Lumentum in a report on Wednesday, May 6th. Stifel Nicolaus upped their price objective on shares of Lumentum from $800.00 to $1,100.00 and gave the company a "buy" rating in a report on Tuesday, May 5th. Finally, UBS Group upped their price target on shares of Lumentum from $455.00 to $960.00 and gave the company a "neutral" rating in a report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $1,021.95.

Lumentum Trading Down 7.8%

The company has a market capitalization of $61.85 billion, a PE ratio of 147.22 and a beta of 1.47. The company has a 50 day simple moving average of $901.14 and a 200 day simple moving average of $667.33. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14.

Lumentum (NASDAQ:LITE - Get Free Report) last released its earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.27 by $0.10. The business had revenue of $808.40 million during 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 company's revenue for the quarter was up 90.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. Analysts anticipate that Lumentum Holdings Inc. will post 6.36 earnings per share for the current year.

Insider Activity at Lumentum

In other news, Director Isaac Hosojiro Harris sold 4,000 shares of Lumentum stock in a transaction on Friday, May 29th. The stock was sold at an average price of $860.00, for a total transaction of $3,440,000.00. Following the transaction, the director owned 8,400 shares in the company, valued at $7,224,000. The trade was a 32.26% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 3,210 shares of the firm's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $953.95, for a total transaction of $3,062,179.50. Following the sale, the insider owned 81,488 shares of the company's stock, valued at $77,735,477.60. This represents a 3.79% 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. Insiders have sold a total of 41,260 shares of company stock valued at $38,859,220 in the last three months. Company insiders own 0.43% of the company's stock.

Institutional Investors Weigh In On Lumentum

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Parallel Advisors LLC increased its position in shares of Lumentum by 71.8% during the 1st quarter. Parallel Advisors LLC now owns 560 shares of the technology company's stock worth $394,000 after purchasing an additional 234 shares during the last quarter. Caerus Investment Advisors LLC purchased a new stake in shares of Lumentum in the 1st quarter valued at approximately $346,000. Concorde Asset Management LLC acquired a new position in Lumentum during the first quarter worth $212,000. Glenmede Trust Co. NA boosted its position in shares of Lumentum by 39.2% during the first quarter. Glenmede Trust Co. NA now owns 1,515 shares of the technology company's stock worth $1,065,000 after buying an additional 427 shares during the period. Finally, Essential Partners LLC raised its holdings in shares of Lumentum by 590.3% in the 1st quarter. Essential Partners LLC now owns 214 shares of the technology company's stock valued at $150,000 after buying an additional 183 shares during the period. 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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