Lumentum (NASDAQ:LITE) Shares Down 8.6% - Time to Sell?

Key Points

• Lumentum shares dropped 8.6% to about $813.51 in heavy trading, with nearly 6.1 million shares changing hands. The stock has a $63.3 billion market capitalization and trades at a high price-to-earnings ratio of 150.65.
• Analyst sentiment remains positive: 14 analysts rate Lumentum a Buy and seven rate it Hold, producing a “Moderate Buy” consensus and an average price target of $1,012.67.
• Insiders sold 23,827 shares worth approximately $22.1 million over the past quarter, while institutional investors retain strong ownership at 94.05% of outstanding shares.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) shares fell 8.6% during mid-day trading on Monday . The stock traded as low as $810.89 and last traded at $813.51. 6,063,935 shares traded hands during trading, an increase of 6% from the average session volume of 5,721,882 shares. The stock had previously closed at $890.17.

Wall Street Analysts Forecast Growth

LITE has been the subject of a number of research reports. Citic Securities lifted their price objective on Lumentum from $620.00 to $1,186.00 in a research report on Monday, May 11th. Needham & Company LLC reaffirmed a "buy" rating and issued a $1,040.00 target price on shares of Lumentum in a research note on Tuesday, June 9th. Susquehanna lifted their price target on shares of Lumentum from $550.00 to $1,100.00 and gave the stock a "positive" rating in a research report on Monday, April 20th. Loop Capital boosted their price target on shares of Lumentum from $900.00 to $1,400.00 and gave the stock a "buy" rating in a research note on Tuesday, May 5th. Finally, Northland Securities raised their price objective on shares of Lumentum from $1,000.00 to $1,200.00 and gave the company an "outperform" rating in a research note on Wednesday, June 3rd. Fourteen investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $1,012.67.

Lumentum Stock Down 8.6%

The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97. The stock has a market cap of $63.29 billion, a price-to-earnings ratio of 150.65 and a beta of 1.50. The firm has a 50 day simple moving average of $815.23 and a two-hundred day simple moving average of $756.94.

Insider Buying and Selling

In other Lumentum news, Director Ian Small sold 4,954 shares of the company's stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $868.07, for a total value of $4,300,418.78. Following the completion of the sale, the director owned 21,008 shares of the company's stock, valued at approximately $18,236,414.56. This represents a 19.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Vincent Retort sold 3,183 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $953.95, for a total transaction of $3,036,422.85. Following the completion of the sale, the insider owned 89,563 shares in the company, valued at approximately $85,438,623.85. This trade represents a 3.43% decrease in their ownership of the stock. 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 sold a total of 23,827 shares of company stock worth $22,051,069 over the last quarter. Insiders own 0.43% of the company's stock.

Hedge Funds Weigh In On Lumentum

Hedge funds and other institutional investors have recently made changes to their positions in the company. Hilton Head Capital Partners LLC acquired a new stake in Lumentum during the 1st quarter worth $25,000. Sachetta LLC grew its stake in 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 acquiring an additional 19 shares during the period. Meeder Asset Management Inc. acquired a new position in Lumentum in the second quarter valued at about $40,000. Mowery & Schoenfeld Wealth Management LLC bought a new stake in shares of Lumentum in the second quarter worth about $51,000. Finally, Wiser Advisor Group LLC increased its holdings in shares of Lumentum by 6,000.0% in the first quarter. Wiser Advisor Group LLC now owns 61 shares of the technology company's stock worth $43,000 after acquiring an additional 60 shares in the last quarter. 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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