Lumentum (NASDAQ:LITE) Shares Up 4.2% - Here's Why

Key Points

• Lumentum shares rose 4.2% in midday trading, with the stock reaching as high as $852.78 amid trading volume that was slightly below its average session level.
• Analysts have turned increasingly bullish on the company, with several firms raising price targets; the current consensus rating is Moderate Buy and the average target price is $1,021.95.
• Lumentum’s latest earnings beat expectations, posting $2.37 EPS versus the $2.27 consensus, while revenue jumped 90.1% year over year to $808.4 million and the company issued Q4 2026 guidance of $2.85 to $3.05 EPS.

Shares of Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) rose 4.2% during mid-day trading on Monday . The stock traded as high as $852.78 and last traded at $851.40. 5,550,989 shares were traded during mid-day trading, a decline of 8% from the average session volume of 6,008,645 shares. The stock had previously closed at $816.98.

Analysts Set New Price Targets

A number of analysts have commented on the company. Raymond James Financial reissued an "outperform" rating and issued a $1,014.00 target price on shares of Lumentum in a report on Wednesday, May 6th. Stifel Nicolaus upped their price target on Lumentum from $800.00 to $1,100.00 and gave the company a "buy" rating in a report on Tuesday, May 5th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Lumentum in a research report on Tuesday, April 21st. Rosenblatt Securities lifted their price objective on Lumentum from $900.00 to $1,300.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. Finally, Loop Capital boosted their target price on Lumentum from $900.00 to $1,400.00 and gave the stock a "buy" rating in a research report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, Lumentum has an average rating of "Moderate Buy" and a consensus target price of $1,021.95.

Lumentum Stock Up 4.2%

The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01. The company has a market cap of $66.24 billion, a PE ratio of 157.67 and a beta of 1.47. The company's fifty day moving average is $901.03 and its 200-day moving average is $670.68.

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, beating analysts' consensus estimates of $2.27 by $0.10. The business had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The company's quarterly revenue was up 90.1% compared to the same quarter last year. During the same period in the previous year, the business earned $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, analysts predict that Lumentum Holdings Inc. will post 6.4 EPS for the current year.

Insider Activity at Lumentum

In other Lumentum news, SVP Jae Kim sold 1,422 shares of the firm's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $1,356,516.90. Following the transaction, the senior vice president directly owned 32,333 shares of the company's stock, valued at approximately $30,844,065.35. This trade represents a 4.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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. Also, insider Vincent Retort sold 3,183 shares of the business'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 $3,036,422.85. Following the sale, the insider owned 89,563 shares of the company's stock, valued at approximately $85,438,623.85. This represents a 3.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. Insiders have sold 41,260 shares of company stock valued at $38,859,220 in the last 90 days. 0.43% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lumentum

Institutional investors have recently made changes to their positions in the business. Arrowstreet Capital Limited Partnership grew its position in Lumentum by 18.7% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company's stock valued at $683,661,000 after buying an additional 291,591 shares during the period. Geode Capital Management LLC raised its position in Lumentum by 9.6% in the fourth quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company's stock worth $521,563,000 after acquiring an additional 123,265 shares during the period. Situational Awareness LP raised its position in Lumentum by 210.9% in the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company's stock worth $478,577,000 after acquiring an additional 880,800 shares during the period. Norges Bank purchased a new position in shares of Lumentum during the 4th quarter worth $474,495,000. Finally, Value Aligned Research Advisors LLC purchased a new position in shares of Lumentum during the 4th quarter worth $432,062,000. Institutional investors 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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