Lumentum (NASDAQ:LITE) Shares Up 4.6% - Time to Buy?

Key Points

• Lumentum shares rose 4.6% to $968.90, while the stock’s average analyst rating remained “Moderate Buy” with a consensus price target of $1,044.67.
• The company beat quarterly expectations, reporting EPS of $3.23 versus the $2.97 consensus and revenue of $1.01 billion, up 109.3% year over year.
• Institutional ownership remains high at 94.05%, although company insiders sold 10,370 shares worth approximately $9.2 million over the past 90 days.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) shares traded up 4.6% on Monday . The stock traded as high as $999.68 and last traded at $968.90. 5,327,656 shares were traded during trading, a decline of 7% from the average session volume of 5,743,743 shares. The stock had previously closed at $926.14.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on LITE shares. Jefferies Financial Group reissued a "buy" rating and issued a $1,200.00 price objective on shares of Lumentum in a report on Wednesday, May 6th. Craig Hallum lifted their price target on Lumentum from $900.00 to $1,150.00 in a research report on Wednesday, May 6th. JPMorgan Chase & Co. boosted their price target on Lumentum from $1,165.00 to $1,280.00 and gave the company an "overweight" rating in a report on Wednesday, August 12th. Loop Capital upped their price objective on Lumentum from $900.00 to $1,400.00 and gave the stock a "buy" rating in a research report on Tuesday, May 5th. Finally, Stifel Nicolaus raised their price objective on shares of Lumentum from $800.00 to $1,100.00 and gave the stock a "buy" rating in a research note on Tuesday, May 5th. Fourteen research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $1,044.67.

Lumentum Stock Up 4.6%

The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01. The business has a 50-day moving average price of $809.08 and a 200-day moving average price of $775.45. The firm has a market capitalization of $75.38 billion, a PE ratio of -11.79 and a beta of 1.50.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.97 by $0.26. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The business had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $987.70 million. During the same quarter last year, the firm earned $0.88 EPS. The business's revenue was up 109.3% compared to the same quarter last year. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Equities research analysts forecast that Lumentum Holdings Inc. will post 16.97 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Ian Small sold 4,954 shares of the firm's stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $868.07, for a total transaction of $4,300,418.78. Following the completion of the sale, the director directly 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Isaac Hosojiro Harris sold 1,416 shares of the company's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $1,000.08, for a total transaction of $1,416,113.28. Following the completion of the transaction, the director directly owned 6,984 shares in the company, valued at $6,984,558.72. The trade was a 16.86% 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. Insiders sold 10,370 shares of company stock worth $9,156,532 in the last 90 days. Company insiders own 0.43% of the company's stock.

Institutional Investors Weigh In On Lumentum

Institutional investors and hedge funds have recently made changes to their positions in the stock. Nomura Asset Management Co. Ltd. raised its holdings in shares of Lumentum by 45.0% in the 4th quarter. Nomura Asset Management Co. Ltd. now owns 369,804 shares of the technology company's stock valued at $136,306,000 after purchasing an additional 114,714 shares in the last quarter. Financiere des Professionnels Fonds d investissement inc. acquired a new position in shares of Lumentum during the first quarter worth $2,046,000. Styrax Capital LP increased its holdings in Lumentum by 3.6% in the first quarter. Styrax Capital LP now owns 140,000 shares of the technology company's stock valued at $98,386,000 after buying an additional 4,837 shares during the last quarter. Whittier Trust Co. increased its holdings in Lumentum by 21,806.5% in the first quarter. Whittier Trust Co. now owns 74,044 shares of the technology company's stock valued at $57,183,000 after buying an additional 73,706 shares during the last quarter. Finally, Andar Capital Management HK Ltd acquired a new stake in Lumentum in the fourth quarter valued at $4,325,000. 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.

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