Lumentum (NASDAQ:LITE) Shares Down 8.8% After Insider Selling

Key Points

• Lumentum shares fell 8.8% after insider selling, closing well below the prior session as trading volume ran above average.
• Director Pamela Fletcher sold shares in two pre-arranged Rule 10b5-1 transactions, and SVP Jae Kim also sold stock, adding to investor concern.
• Despite the drop, analysts remain broadly bullish: multiple firms recently raised price targets, and the consensus rating is Moderate Buy with a target of about $1,012.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s share price traded down 8.8% during mid-day trading on Monday after an insider sold shares in the company. The company traded as low as $857.00 and last traded at $884.98. 7,155,423 shares were traded during mid-day trading, an increase of 18% from the average session volume of 6,045,229 shares. The stock had previously closed at $970.70.

Specifically, Director Pamela Fletcher sold 1,578 shares of the stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $940.82, for a total transaction of $1,484,613.96. Following the completion of the transaction, the director directly owned 7,406 shares of the company's stock, valued at $6,967,712.92. This represents a 17.56% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Pamela Fletcher sold 1,577 shares of the stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $1,003.38, for a total transaction of $1,582,330.26. Following the transaction, the director directly owned 8,984 shares of the company's stock, valued at $9,014,365.92. This represents a 14.93% 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. In other news, SVP Jae Kim sold 1,933 shares of the stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $950.99, for a total transaction of $1,838,263.67. Following the completion of the transaction, the senior vice president directly owned 35,114 shares of the company's stock, valued at $33,393,062.86. This represents a 5.22% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on the stock. Stifel Nicolaus increased their target price on shares of Lumentum from $800.00 to $1,100.00 and gave the company a "buy" rating in a research report on Tuesday, May 5th. Craig Hallum increased their target price on shares of Lumentum from $900.00 to $1,150.00 in a research report on Wednesday, May 6th. Mizuho set a $1,100.00 target price on shares of Lumentum in a research report on Wednesday, May 6th. Citigroup increased their target price on shares of Lumentum from $800.00 to $1,100.00 and gave the company a "buy" rating in a research report on Tuesday, April 21st. Finally, Northland Securities set a $1,000.00 target price on shares of Lumentum in a research report on Monday, April 20th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $1,012.43.

Lumentum Stock Performance

The company's fifty day moving average is $809.96 and its 200 day moving average is $537.63. The company has a market capitalization of $68.85 billion, a P/E ratio of 163.89 and a beta of 1.53. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, topping the consensus estimate of $2.27 by $0.10. The company had revenue of $808.40 million during the quarter, compared to the consensus estimate of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. Lumentum's revenue for the quarter was up 90.1% on a year-over-year basis. During the same period last year, the firm earned $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, equities analysts anticipate that Lumentum Holdings Inc. will post 6.49 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the business. Hilton Head Capital Partners LLC purchased a new stake in Lumentum in the 1st quarter worth approximately $25,000. Sachetta LLC lifted its stake in Lumentum by 118.8% in the 1st quarter. Sachetta LLC now owns 35 shares of the technology company's stock worth $25,000 after purchasing an additional 19 shares in the last quarter. EverSource Wealth Advisors LLC lifted its stake in Lumentum by 363.9% in the 3rd quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company's stock worth $27,000 after purchasing an additional 131 shares in the last quarter. V Square Quantitative Management LLC purchased a new stake in Lumentum in the 4th quarter worth approximately $28,000. Finally, Truvestments Capital LLC lifted its stake in Lumentum by 300.0% in 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 in the last quarter. 94.05% of the stock is owned by institutional investors.

Lumentum Company Profile

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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