Lumentum (NASDAQ:LITE) Shares Up 3.8% - Still a Buy?

Key Points

• Lumentum shares rose 3.8% on Friday, continuing momentum after the company beat quarterly earnings estimates and posted revenue up 90.1% year over year. The stock remains well above its 200-day moving average, though it still trails its 50-day average.
• Analysts are broadly positive on the name, with several firms raising price targets and 14 analysts rating it a Buy versus 7 Holds. The consensus rating is Moderate Buy, with a consensus target price of $1,012.67.
• Investor attention is being driven by AI optical network demand, including record laser-chip shipments, capacity expansion, and a push into co-packaged optics. However, some firms remain cautious, with UBS maintaining a Hold rating and Citi putting the stock on a 90-day catalyst watch.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s stock price rose 3.8% on Friday . The company traded as high as $747.00 and last traded at $732.82. Approximately 4,920,708 shares were traded during mid-day trading, a decline of 16% from the average daily volume of 5,831,275 shares. The stock had previously closed at $706.23.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Analysts highlighted Lumentum’s record laser-chip shipments, expanding indium phosphide capacity, and push into co-packaged optics (CPO), which could help it capture stronger demand from AI optical networks. Can Lumentum's AI Laser Chip Demand Accelerate Revenue Growth?
• Positive Sentiment: Zacks upgraded Lumentum to Rank #2 (Buy), citing improved earnings estimates and growing confidence in the company’s outlook, which has added support to the stock. Lumentum (LITE) Upgraded to Buy: What Does It Mean for the Stock?
• Positive Sentiment: Coverage comparing LITE with Applied Digital argued that Lumentum’s stronger execution, AI-driven growth, and lower valuation make it an attractive AI infrastructure play. LITE vs. APLD: Which AI Infrastructure Stock Offers Better Growth?
• Neutral Sentiment: UBS reaffirmed its Hold rating on Lumentum, while Citi reportedly placed the stock on a 90-day catalyst watch, keeping attention on near-term developments. UBS Reaffirms Their Hold Rating on Lumentum Holdings (LITE) Lumentum in focus as Citi adds 90-day catalyst watch

Analysts Set New Price Targets

Several analysts have issued reports on the company. Northland Securities upped their target price on Lumentum from $1,000.00 to $1,200.00 and gave the stock an "outperform" rating in a research note on Wednesday, June 3rd. Rosenblatt Securities upped their price objective 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. Morgan Stanley increased their target price on shares of Lumentum from $710.00 to $900.00 and gave the company an "equal weight" rating in a report on Wednesday, May 6th. Citic Securities lifted their target price on shares of Lumentum from $620.00 to $1,186.00 in a research report on Monday, May 11th. Finally, Citigroup reissued a "buy" rating on shares of Lumentum in a research note on Thursday. Fourteen investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, Lumentum has a consensus rating of "Moderate Buy" and a consensus target price of $1,012.67.

Lumentum Stock Up 3.8%

The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01. The stock has a 50 day simple moving average of $868.47 and a 200 day simple moving average of $710.60. The firm has a market capitalization of $57.01 billion, a PE ratio of 135.71 and a beta of 1.48.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, beating analysts' consensus estimates of $2.27 by $0.10. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The firm had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.21 million. During the same quarter in the prior year, the firm posted $0.57 earnings per share. The business's quarterly revenue was up 90.1% compared to the same quarter last year. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, sell-side analysts forecast that Lumentum Holdings Inc. will post 6.4 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 business's stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $860.00, for a total value of $3,440,000.00. Following the transaction, the director owned 8,400 shares in the company, valued at approximately $7,224,000. The trade was a 32.26% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Vincent Retort sold 3,183 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 transaction of $3,036,422.85. Following the transaction, the insider directly owned 89,563 shares of the company's stock, valued at approximately $85,438,623.85. This trade represents a 3.43% 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 the last three months, insiders have sold 41,260 shares of company stock valued at $38,859,220. Company insiders own 0.43% of the company's stock.

Hedge Funds Weigh In On Lumentum

Hedge funds have recently made changes to their positions in the business. Hilltop National Bank lifted its stake in Lumentum by 26.8% in the second quarter. Hilltop National Bank now owns 71 shares of the technology company's stock worth $61,000 after acquiring an additional 15 shares during the period. Sachetta LLC increased its position 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 period. Versant Capital Management Inc raised its holdings in Lumentum by 39.5% in the 2nd quarter. Versant Capital Management Inc now owns 106 shares of the technology company's stock worth $91,000 after purchasing an additional 30 shares in the last quarter. Hilton Head Capital Partners LLC bought a new position in Lumentum in the 1st quarter worth $25,000. Finally, Abel Hall LLC raised its holdings in Lumentum by 5.5% in the 1st quarter. Abel Hall LLC now owns 693 shares of the technology company's stock worth $487,000 after purchasing an additional 36 shares in the last quarter. 94.05% of the stock is owned by hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.