Lumentum (NASDAQ:LITE) Shares Down 8.4% - Should You Sell?

Key Points

• Lumentum shares fell 8.4% to $651.93, with about 5.6 million shares traded. The stock is well below its 50-day moving average of $841.23 but above its 200-day average of $730.69.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $1,012.67. Fourteen analysts rate the stock a Buy, while seven recommend holding it.
• Lumentum reported quarterly EPS of $2.37, beating estimates by $0.10, while revenue rose 90.1% year over year to $808.4 million. Insiders have sold $38.9 million worth of shares over the past 90 days, though the transactions were conducted under pre-arranged plans to cover tax obligations.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s share price was down 8.4% during trading on Tuesday . The company traded as low as $602.28 and last traded at $651.93. Approximately 5,576,137 shares traded hands during trading, a decline of 3% from the average daily volume of 5,751,576 shares. The stock had previously closed at $711.96.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the company. Raymond James Financial reiterated an "outperform" rating and set a $1,014.00 target price on shares of Lumentum in a report on Wednesday, May 6th. Weiss Ratings restated a "hold (c)" rating on shares of Lumentum in a research note on Friday, July 17th. Mizuho set a $1,100.00 price target on Lumentum in a research report on Wednesday, May 6th. Citigroup reiterated a "buy" rating on shares of Lumentum in a research note on Thursday, July 16th. Finally, Stifel Nicolaus raised their target price on shares of Lumentum from $800.00 to $1,100.00 and gave the company a "buy" rating in a research note on Tuesday, May 5th. Fourteen equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $1,012.67.

Lumentum Price Performance

The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01. The firm has a market cap of $50.72 billion, a P/E ratio of 120.73 and a beta of 1.48. The business has a fifty day moving average of $841.23 and a 200 day moving average of $730.69.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.27 by $0.10. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The firm had revenue of $808.40 million for the quarter, compared to analyst estimates of $810.21 million. During the same quarter in the prior year, the company earned $0.57 earnings per share. The business's revenue for the quarter was up 90.1% compared to the same quarter last year. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, sell-side analysts anticipate that Lumentum Holdings Inc. will post 6.42 earnings per share for the current year.

Insider Buying and Selling at Lumentum

In other Lumentum news, 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 transaction of $1,356,516.90. Following the completion of the transaction, the senior vice president directly owned 32,333 shares of the company's stock, valued at $30,844,065.35. The trade was a 4.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available 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. Also, insider Vincent Retort sold 3,183 shares of the company's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $3,036,422.85. Following the completion of the transaction, the insider owned 89,563 shares in the company, valued at approximately $85,438,623.85. This represents a 3.43% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. Over the last ninety days, insiders have sold 41,260 shares of company stock worth $38,859,220. 0.43% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Hilton Head Capital Partners LLC bought a new stake in shares of Lumentum during the first quarter worth approximately $25,000. Sachetta LLC grew its position in shares of Lumentum by 118.8% in the first quarter. Sachetta LLC now owns 35 shares of the technology company's stock valued at $25,000 after purchasing an additional 19 shares during the last quarter. V Square Quantitative Management LLC bought a new position in shares of Lumentum during the fourth quarter worth approximately $28,000. Truvestments Capital LLC lifted its holdings in Lumentum by 300.0% during the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company's stock worth $28,000 after purchasing an additional 57 shares during the last quarter. Finally, Triumph Capital Management acquired a new stake in Lumentum during the 4th quarter worth approximately $30,000. 94.05% of the stock is owned by 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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