Lumentum (NASDAQ:LITE) Shares Gap Down Following Insider Selling

Key Points

• Lumentum shares fell 7.6%, opening at $823.60 after previously closing at $866.71, and later trading near $798.78.
• Several insiders sold shares under pre-arranged Rule 10b5-1 plans to cover tax withholding tied to vested equity awards; the sales reduced their holdings by less than 5% each.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and a $1,044.67 price target. Lumentum also exceeded quarterly EPS and revenue expectations, with revenue up 109.3% year over year.

Shares of Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) gapped down prior to trading on Monday following insider selling activity. The stock had previously closed at $866.71, but opened at $823.60. Lumentum shares last traded at $798.7820, with a volume of 845,386 shares.

Specifically, SVP Jae Kim sold 1,904 shares of the firm's stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $827.82, for a total value of $1,576,169.28. Following the completion of the transaction, the senior vice president directly owned 42,096 shares in the company, valued at $34,847,910.72. This trade represents a 4.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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 2,483 shares of the business's stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $827.82, for a total transaction of $2,055,477.06. Following the transaction, the insider owned 109,438 shares in the company, valued at approximately $90,594,965.16. The trade was a 2.22% 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. In other news, insider Yuen Wupen sold 500 shares of the business's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $898.15, for a total transaction of $449,075.00. Following the transaction, the insider directly owned 93,229 shares in the company, valued at $83,733,626.35. The trade was a 0.53% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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.

Analyst Upgrades and Downgrades

LITE has been the topic of several research analyst reports. Needham & Company LLC reissued a "buy" rating and issued a $1,040.00 price target on shares of Lumentum in a report on Wednesday, August 12th. Zacks Research upgraded Lumentum from a "hold" rating to a "strong-buy" rating in a report on Thursday. Barclays upped their target price on Lumentum from $750.00 to $1,000.00 and gave the company an "equal weight" rating in a research report on Wednesday, May 6th. Citic Securities increased their target price on Lumentum from $620.00 to $1,186.00 in a research note on Monday, May 11th. Finally, Mizuho lifted their price target on Lumentum from $1,100.00 to $1,140.00 and gave the stock an "outperform" rating in a report on Wednesday, August 12th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Lumentum has a consensus rating of "Moderate Buy" and a consensus price target of $1,044.67.

Lumentum Trading Down 7.6%

The business's fifty day moving average is $809.76 and its 200-day moving average is $792.80. The firm has a market cap of $71.83 billion, a P/E ratio of -9.74 and a beta of 1.50. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.40 and a current ratio of 1.68.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.97 by $0.26. The firm had revenue of $1.01 billion during the quarter, compared to analyst estimates of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The company's revenue was up 109.3% compared to the same quarter last year. During the same quarter last year, the business earned $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Analysts predict that Lumentum Holdings Inc. will post 19.76 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Hilton Head Capital Partners LLC bought a new position in shares of Lumentum in the first quarter valued at $25,000. Sachetta LLC boosted its stake in Lumentum by 118.8% during the 1st 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. Truvestments Capital LLC boosted its stake in Lumentum by 300.0% during the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company's stock valued at $28,000 after purchasing an additional 57 shares during the last quarter. Triumph Capital Management bought a new stake in Lumentum during the 4th quarter worth approximately $30,000. Finally, Danske Bank A S purchased a new stake in shares of Lumentum in the third quarter worth approximately $33,000. Institutional investors own 94.05% of the company's stock.

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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