Lumentum (NASDAQ:LITE) Shares Up 3.2% - Here's Why

Key Points

• Lumentum shares rose 3.2% intraday to as high as $766 (last $728.95) on above-average volume, and analysts left a consensus rating of "Moderate Buy" with an average target of $575.06 despite several higher individual targets (Rosenblatt $900, Barclays $750).
• Quarterly results beat expectations: the company reported $1.67 EPS vs. $1.41 expected and revenue of $665.5M (up 65.5% YoY), and set Q3 2026 guidance of $2.15–$2.35 EPS.
• Insider selling amid heavy institutional buying: insiders sold about 65,775 shares (~$38.9M) over the last 90 days and now own 0.43% of the stock, while institutional ownership is high at 94.05% with large new positions by Arrowstreet, Norges Bank and others.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) shares shot up 3.2% during trading on Monday . The company traded as high as $766.00 and last traded at $728.95. 7,326,905 shares were traded during mid-day trading, an increase of 23% from the average session volume of 5,953,863 shares. The stock had previously closed at $706.35.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on LITE shares. Barclays lifted their price target on Lumentum to $750.00 and gave the stock an "equal weight" rating in a research note on Tuesday, March 3rd. Morgan Stanley increased their price objective on Lumentum to $595.00 and gave the company an "equal weight" rating in a research report on Wednesday, March 18th. Weiss Ratings restated a "hold (c-)" rating on shares of Lumentum in a research report on Monday, December 29th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $900.00 target price on shares of Lumentum in a research note on Wednesday, March 18th. Finally, Susquehanna increased their price target on shares of Lumentum to $550.00 and gave the company a "positive" rating in a research report on Wednesday, February 4th. Two research analysts have rated the stock with a Strong Buy rating, eleven 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 a consensus rating of "Moderate Buy" and an average target price of $575.06.

Lumentum Trading Up 3.2%

The firm's 50-day simple moving average is $542.15 and its 200-day simple moving average is $351.47. The firm has a market capitalization of $52.05 billion, a PE ratio of 223.60 and a beta of 1.38. The company has a quick ratio of 0.45, a current ratio of 0.61 and a debt-to-equity ratio of 0.06.

Lumentum (NASDAQ:LITE - Get Free Report) last released its earnings results on Tuesday, February 3rd. The technology company reported $1.67 earnings per share for the quarter, beating analysts' consensus estimates of $1.41 by $0.26. The company had revenue of $665.50 million during the quarter, compared to analyst estimates of $646.74 million. Lumentum had a return on equity of 17.27% and a net margin of 11.95%.Lumentum's revenue for the quarter was up 65.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.42 EPS. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. Equities analysts expect that Lumentum Holdings Inc. will post 0.03 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Wajid Ali sold 5,302 shares of Lumentum stock in a transaction on Friday, February 27th. The shares were sold at an average price of $691.13, for a total value of $3,664,371.26. Following the transaction, the chief financial officer directly owned 66,287 shares of the company's stock, valued at $45,812,934.31. The trade was a 7.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Vincent Retort sold 3,441 shares of the company's stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $545.78, for a total transaction of $1,878,028.98. Following the sale, the insider owned 95,975 shares of the company's stock, valued at $52,381,235.50. This represents a 3.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 65,775 shares of company stock worth $38,851,343. Company insiders own 0.43% of the company's stock.

Institutional Investors Weigh In On Lumentum

Large investors have recently added to or reduced their stakes in the company. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Lumentum by 8,579.2% during the third quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company's stock worth $254,350,000 after purchasing an additional 1,545,199 shares during the period. Norges Bank purchased a new position in Lumentum during the 4th quarter valued at about $474,495,000. Value Aligned Research Advisors LLC purchased a new position in Lumentum during the 4th quarter valued at about $432,062,000. Hood River Capital Management LLC raised its position in Lumentum by 82.1% during the 2nd quarter. Hood River Capital Management LLC now owns 2,206,453 shares of the technology company's stock valued at $209,745,000 after purchasing an additional 994,551 shares during the last quarter. Finally, Situational Awareness LP lifted its holdings in Lumentum by 210.9% in the 4th quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company's stock worth $478,577,000 after buying an additional 880,800 shares during the period. 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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