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

Key Points

• Lumentum shares rose 4.5% on Monday, with the stock trading between $732.82 and $801.80 and volume below its average session level.
• Wall Street remains broadly upbeat on the stock: 14 analysts rate it a Buy, 7 a Hold, and the consensus price target is $1,012.67, despite one recent downgrade from TD Cowen.
• Recent results were strong, with quarterly EPS of $2.37 beating estimates and revenue up 90.1% year over year; the company also issued Q4 2026 EPS guidance of $2.85 to $3.05.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s share price shot up 4.5% during trading on Monday . The stock traded as high as $801.80 and last traded at $765.55. Approximately 4,403,399 shares changed hands during mid-day trading, a decline of 24% from the average session volume of 5,820,916 shares. The stock had previously closed at $732.82.

Analyst Upgrades and Downgrades

LITE has been the subject of several recent research reports. Raymond James Financial reaffirmed an "outperform" rating and set a $1,014.00 target price on shares of Lumentum in a report on Wednesday, May 6th. Citigroup reaffirmed a "buy" rating on shares of Lumentum in a report on Thursday. Craig Hallum lifted their price target on Lumentum from $900.00 to $1,150.00 in a research note on Wednesday, May 6th. TD Cowen reduced their price target on Lumentum from $995.00 to $800.00 and set a "hold" rating for the company in a report on Monday, July 13th. Finally, JPMorgan Chase & Co. raised their price objective on Lumentum from $950.00 to $1,130.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Fourteen research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, Lumentum presently has a consensus rating of "Moderate Buy" and an average price target of $1,012.67.

Lumentum Price Performance

The stock's 50-day moving average price is $865.06 and its 200 day moving average price is $713.14. 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 firm has a market capitalization of $59.56 billion, a price-to-earnings ratio of 141.77 and a beta of 1.48.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its quarterly 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 firm had revenue of $808.40 million for 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%. Lumentum's quarterly revenue was up 90.1% on a year-over-year basis. During the same period in the previous year, the business posted $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. Equities research analysts expect that Lumentum Holdings Inc. will post 6.42 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Ian Small sold 4,954 shares of the stock in a transaction that occurred on 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 sale, the director 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Wajid Ali sold 2,487 shares of the stock in a transaction that occurred on 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 completion of the sale, the chief financial officer directly owned 60,951 shares of the company's stock, valued at approximately $58,144,206.45. This represents a 3.92% decrease in their position. 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. Over the last ninety days, insiders sold 41,260 shares of company stock valued at $38,859,220. Insiders own 0.43% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of LITE. Arrowstreet Capital Limited Partnership increased its stake in 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 acquiring an additional 1,545,199 shares during the last quarter. Norges Bank acquired a new position in shares of Lumentum in the 4th quarter valued at $474,495,000. Value Aligned Research Advisors LLC purchased a new position in shares of Lumentum during the 4th quarter worth $432,062,000. Situational Awareness LP grew its holdings in shares of Lumentum by 210.9% during the 4th quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company's stock worth $478,577,000 after purchasing an additional 880,800 shares during the period. Finally, Assenagon Asset Management S.A. increased its position in shares of Lumentum by 707.0% during the 4th quarter. Assenagon Asset Management S.A. now owns 994,478 shares of the technology company's stock worth $366,555,000 after purchasing an additional 871,249 shares during the last quarter. Hedge funds and other 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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