Lumentum (NASDAQ:LITE) Shares Up 3% - What's Next?

Key Points

• Lumentum shares rose 3% in mid-day trading to $713.94, although trading volume was about 21% below the average session volume.
• Analyst sentiment remains positive overall, with 14 Buy ratings and seven Holds producing a “Moderate Buy” consensus and an average price target of $1,012.67; however, some analysts recently lowered or maintained cautious targets.
• Lumentum exceeded quarterly EPS estimates and reported 90.1% year-over-year revenue growth, while insiders have sold $38.9 million of stock over the past 90 days and institutional investors own 94.05% of shares.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) was up 3% during mid-day trading on Friday . The stock traded as high as $772.60 and last traded at $713.94. Approximately 4,526,212 shares changed hands during mid-day trading, a decline of 21% from the average session volume of 5,747,126 shares. The stock had previously closed at $693.24.

Wall Street Analyst Weigh In

LITE has been the subject of several analyst reports. TD Cowen dropped their price target on shares of Lumentum from $995.00 to $800.00 and set a "hold" rating for the company in a research note on Monday, July 13th. Zacks Research downgraded Lumentum from a "strong-buy" rating to a "hold" rating in a report on Monday, July 6th. Morgan Stanley raised their target price on Lumentum from $710.00 to $900.00 and gave the stock an "equal weight" rating in a research report on Wednesday, May 6th. BNP Paribas Exane lifted their target price on Lumentum from $1,040.00 to $1,300.00 in a report on Wednesday, May 6th. Finally, Northland Securities upped their price target on Lumentum from $1,000.00 to $1,200.00 and gave the company an "outperform" rating in a research report on Wednesday, June 3rd. Fourteen investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $1,012.67.

Lumentum Stock Performance

The stock's 50 day moving average price is $825.72 and its 200 day moving average price is $736.71. 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 company has a market capitalization of $55.54 billion, a P/E ratio of 132.21 and a beta of 1.48.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, topping analysts' consensus estimates of $2.27 by $0.10. The business 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 quarterly revenue was up 90.1% on a year-over-year basis. During the same quarter last year, the firm earned $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, equities analysts expect that Lumentum Holdings Inc. will post 6.42 EPS for the current year.

Insider Activity

In other news, Director Ian Small sold 4,954 shares of Lumentum stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $868.07, for a total value of $4,300,418.78. Following the completion of the transaction, the director directly owned 21,008 shares of the company's stock, valued at approximately $18,236,414.56. This trade represents a 19.08% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Wajid Ali sold 2,487 shares of the company's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $953.95, for a total value of $2,372,473.65. Following the sale, the chief financial officer owned 60,951 shares in the company, valued at approximately $58,144,206.45. The trade was a 3.92% decrease in their position. 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 the last 90 days, insiders sold 41,260 shares of company stock worth $38,859,220. 0.43% of the stock is owned by insiders.

Hedge Funds Weigh In On Lumentum

Institutional investors have recently added to or reduced their stakes in the business. Advisors Asset Management Inc. grew its position in shares of Lumentum by 36.8% during 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 during the period. NewEdge Advisors LLC raised its holdings in shares of Lumentum by 109.9% during the first quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company's stock valued at $747,000 after purchasing an additional 6,275 shares during the period. Empowered Funds LLC boosted its position in shares of Lumentum by 9.1% during the 1st quarter. Empowered Funds LLC now owns 8,139 shares of the technology company's stock worth $507,000 after purchasing an additional 680 shares in the last quarter. Hsbc Holdings PLC acquired a new stake in shares of Lumentum in the 2nd quarter valued at about $298,000. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in Lumentum in the second quarter valued at approximately $1,712,000. 94.05% of the stock is owned by institutional investors and hedge funds.

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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