Lumentum (NASDAQ:LITE) Shares Up 4.5% - Time to Buy?

Key Points

• Lumentum Holdings Inc. saw a 4.5% increase in its stock price, reaching $159.65, with trading volume up 15% compared to the average.
• Analysts have set new price targets for Lumentum, with price targets ranging from $130.00 to $165.00, and a consensus rating of "Moderate Buy".
• Insider trading reports show that insiders have sold 41,687 shares of Lumentum stock worth approximately $4.76 million over the last quarter.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) shot up 4.5% on Thursday . The company traded as high as $160.83 and last traded at $159.65. 3,199,886 shares were traded during mid-day trading, an increase of 15% from the average session volume of 2,783,845 shares. The stock had previously closed at $152.75.

Analysts Set New Price Targets

Several research firms have recently commented on LITE. Wolfe Research began coverage on Lumentum in a research note on Tuesday, August 12th. They set an "outperform" rating for the company. UBS Group upped their price target on Lumentum from $78.00 to $130.00 and gave the stock a "neutral" rating in a research note on Wednesday, August 13th. JPMorgan Chase & Co. upped their price target on Lumentum from $123.00 to $145.00 and gave the stock an "overweight" rating in a research note on Thursday, August 14th. Needham & Company LLC reaffirmed a "buy" rating and set a $145.00 price objective (up previously from $135.00) on shares of Lumentum in a report on Wednesday, August 13th. Finally, Barclays upped their price objective on Lumentum from $135.00 to $165.00 and gave the stock an "overweight" rating in a report on Tuesday, September 9th. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, Lumentum currently has a consensus rating of "Moderate Buy" and a consensus price target of $133.36.

Lumentum Trading Up 4.2%

The company has a quick ratio of 3.18, a current ratio of 4.37 and a debt-to-equity ratio of 2.26. The firm has a market cap of $11.12 billion, a price-to-earnings ratio of 691.83 and a beta of 1.42. The business has a 50 day moving average price of $128.89 and a 200-day moving average price of $91.93.

Lumentum (NASDAQ:LITE - Get Free Report) last issued its quarterly earnings data on Tuesday, August 12th. The technology company reported $0.88 earnings per share for the quarter, beating analysts' consensus estimates of $0.79 by $0.09. Lumentum had a negative return on equity of 3.02% and a net margin of 1.57%.The firm had revenue of $480.70 million during the quarter, compared to analyst estimates of $465.27 million. During the same quarter last year, the firm earned $0.06 EPS. Lumentum's quarterly revenue was up 55.9% on a year-over-year basis. Lumentum has set its Q1 2026 guidance at 0.950-1.100 EPS. As a group, research analysts expect that Lumentum Holdings Inc. will post 0.03 EPS for the current fiscal year.

Insider Activity

In other news, insider Yuen Wupen sold 3,281 shares of Lumentum stock in a transaction that occurred on Wednesday, August 27th. The stock was sold at an average price of $124.86, for a total value of $409,665.66. Following the completion of the transaction, the insider owned 101,273 shares in the company, valued at approximately $12,644,946.78. This trade represents a 3.14% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Julia Suzanne Johnson sold 1,250 shares of Lumentum stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $119.06, for a total value of $148,825.00. Following the completion of the transaction, the director owned 22,037 shares of the company's stock, valued at approximately $2,623,725.22. The trade was a 5.37% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 41,687 shares of company stock worth $4,759,552 over the last quarter. Corporate insiders own 0.19% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Osaic Holdings Inc. grew its position in shares of Lumentum by 190.8% in the 2nd quarter. Osaic Holdings Inc. now owns 20,439 shares of the technology company's stock worth $1,942,000 after acquiring an additional 13,410 shares in the last quarter. Thrivent Financial for Lutherans grew its position in shares of Lumentum by 0.7% in the 2nd quarter. Thrivent Financial for Lutherans now owns 16,340 shares of the technology company's stock worth $1,553,000 after acquiring an additional 115 shares in the last quarter. Cim Investment Management Inc. lifted its holdings in shares of Lumentum by 100.8% in the 2nd quarter. Cim Investment Management Inc. now owns 9,622 shares of the technology company's stock worth $860,000 after purchasing an additional 4,829 shares during the last quarter. Marex Group plc bought a new stake in shares of Lumentum in the 2nd quarter worth approximately $287,000. Finally, Advisory Services Network LLC bought a new stake in shares of Lumentum in the 2nd quarter worth approximately $625,000. Institutional investors and hedge funds own 94.05% of the company's stock.

Lumentum Company Profile

Lumentum Holdings Inc manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables.

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