Lumentum (NASDAQ:LITE) Shares Up 2.8% - Here's Why

Key Points

• Lumentum shares jumped about 2.8% intraday to $976.18 (trading as high as $1,004.94) on Monday, with roughly 5.4 million shares changing hands—slightly below average volume.
• The company beat estimates with quarterly EPS of $1.67 (vs. $1.41 est.) and revenue of $665.5M (up 65.5% YoY), and set Q3 2026 guidance of $2.15–$2.35 EPS.
• Analysts are mostly positive (11 Buys, 7 Holds; consensus "Moderate Buy"), but the average price target of $757.25 and a high valuation (market cap ≈ $69.7B; P/E ≈ 299) indicate expectations are elevated relative to current share price.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s stock price shot up 2.8% during mid-day trading on Monday . The company traded as high as $1,004.94 and last traded at $976.18. 5,400,357 shares changed hands during mid-day trading, a decline of 8% from the average session volume of 5,896,902 shares. The stock had previously closed at $949.93.

Analysts Set New Price Targets

Several analysts recently weighed in on the company. B. Riley Financial reissued a "buy" rating on shares of Lumentum in a report on Friday. Bank of America boosted their price objective on Lumentum to $520.00 and gave the company a "neutral" rating in a report on Wednesday, February 4th. Mizuho boosted their price objective on Lumentum from $750.00 to $930.00 and gave the company an "outperform" rating in a report on Wednesday, April 8th. Zacks Research lowered shares of Lumentum from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 13th. Finally, Stifel Nicolaus boosted their target price on shares of Lumentum to $800.00 and gave the company a "buy" rating in a research note on Monday, March 2nd. Eleven research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, Lumentum has an average rating of "Moderate Buy" and a consensus target price of $757.25.

Lumentum Price Performance

The company has a fifty day moving average price of $760.12 and a 200 day moving average price of $486.41. The company has a market capitalization of $69.70 billion, a P/E ratio of 299.44 and a beta of 1.53. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.61 and a quick ratio of 0.45.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings results on Tuesday, February 3rd. The technology company reported $1.67 EPS for the quarter, topping the consensus estimate of $1.41 by $0.26. The business had revenue of $665.50 million during the quarter, compared to analyst estimates of $646.74 million. Lumentum had a net margin of 11.95% and a return on equity of 17.27%. The company's quarterly revenue was up 65.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.42 earnings per share. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. On average, sell-side analysts forecast that Lumentum Holdings Inc. will post 5.87 EPS for the current fiscal year.

Insider Activity

In related news, CFO Wajid Ali sold 5,302 shares of the stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $691.13, for a total value of $3,664,371.26. Following the completion of the transaction, the chief financial officer directly owned 66,287 shares of the company's stock, valued at $45,812,934.31. This represents a 7.41% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Penny Herscher sold 4,849 shares of the stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $535.48, for a total value of $2,596,542.52. Following the completion of the transaction, the director directly owned 6,057 shares of the company's stock, valued at $3,243,402.36. This trade represents a 44.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 65,775 shares of company stock worth $38,851,343 over the last ninety days. Insiders own 0.43% of the company's stock.

Hedge Funds Weigh In On Lumentum

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LITE. Advisors Asset Management Inc. grew its holdings in Lumentum by 36.8% in the 1st quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company's stock worth $59,000 after buying an additional 254 shares in the last quarter. NewEdge Advisors LLC grew its holdings in Lumentum by 109.9% in the 1st quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company's stock worth $747,000 after buying an additional 6,275 shares in the last quarter. Empowered Funds LLC grew its position in Lumentum by 9.1% in the 1st quarter. Empowered Funds LLC now owns 8,139 shares of the technology company's stock valued at $507,000 after buying an additional 680 shares in the last quarter. Hsbc Holdings PLC bought a new position in Lumentum in the 2nd quarter valued at about $298,000. Finally, Arrowstreet Capital Limited Partnership acquired a new position in Lumentum during the 2nd quarter valued at about $1,712,000. 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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