Lumentum (NASDAQ:LITE) Shares Gap Up - Here's Why

Key Points

• Lumentum shares gapped up ahead of Monday trading, opening at $764.13 after closing at $732.82 and later trading near $793.69, an intraday gain of about 8%.
• Analyst sentiment is mixed but broadly positive: recent price-target changes ranged from TD Cowen cutting its target to $800 with a hold rating to Rosenblatt and Stifel raising targets to $1,300 and $1,100, respectively. Overall, the stock carries a consensus rating of “Moderate Buy” with a $1,012.67 price target.
• Recent earnings were strong, with Q1 EPS of $2.37 beating estimates and revenue up 90.1% year over year. The company also gave Q4 2026 guidance of $2.85 to $3.05 EPS.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $732.82, but opened at $764.13. Lumentum shares last traded at $793.6880, with a volume of 935,286 shares traded.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the stock. TD Cowen reduced their price target on shares of Lumentum from $995.00 to $800.00 and set a "hold" rating for the company in a report on Monday, July 13th. Morgan Stanley increased their price objective on shares of Lumentum from $710.00 to $900.00 and gave the stock an "equal weight" rating in a report on Wednesday, May 6th. B. Riley Financial reiterated a "buy" rating on shares of Lumentum in a research report on Friday, May 1st. Rosenblatt Securities boosted their target price on shares of Lumentum from $900.00 to $1,300.00 and gave the company a "buy" rating in a research note on Wednesday, May 6th. Finally, Stifel Nicolaus boosted 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 assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,012.67.

Lumentum Stock Up 8.0%

The firm has a 50 day simple moving average of $865.06 and a two-hundred day simple moving average of $713.14. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14. The stock has a market cap of $61.56 billion, a P/E ratio of 145.82 and a beta of 1.48.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its quarterly 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 company had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.21 million. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The firm's quarterly revenue was up 90.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. Equities research analysts predict that Lumentum Holdings Inc. will post 6.42 earnings per share for the current year.

Insider Transactions at Lumentum

In other Lumentum news, Director Isaac Hosojiro Harris sold 4,000 shares of the firm's stock in a transaction dated Friday, May 29th. The shares were 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 of the company's stock, valued at approximately $7,224,000. This trade represents a 32.26% decrease in their position. The transaction was disclosed in a 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, Director Ian Small sold 4,954 shares of the firm's stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $868.07, for a total transaction of $4,300,418.78. Following the transaction, the director directly owned 21,008 shares in the company, valued at approximately $18,236,414.56. The trade was a 19.08% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 41,260 shares of company stock worth $38,859,220 over the last ninety days. Insiders own 0.43% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Hilton Head Capital Partners LLC acquired a new stake in Lumentum in the first quarter worth approximately $25,000. Sachetta LLC increased its position in shares of 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 period. V Square Quantitative Management LLC acquired a new position in shares of Lumentum during the 4th quarter valued at $28,000. Truvestments Capital LLC raised its stake in shares of 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 buying an additional 57 shares in the last quarter. Finally, Triumph Capital Management bought a new stake in shares of Lumentum in the 4th quarter worth $30,000. Institutional investors and hedge funds 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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