Lumentum (NASDAQ:LITE) Shares Up 9.4% - Still a Buy?

Key Points

• Lumentum shares rose 9.4% intraday to a high of $628.70 (last $610.89) on Monday, with trading volume about 32% below its average.
• Analyst sentiment is broadly positive — the consensus rating is "Moderate Buy" with an average target of $513.94, while individual price targets were raised by brokers, ranging up to $850 (Needham).
• The company reported an earnings beat ($1.67 EPS vs. $1.41 est.) and revenue of $665.5M (+65.5% YoY) with Q3 2026 EPS guidance of $2.15–$2.35, though the stock trades at a high P/E (~189) and insiders have recently sold shares.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) shares rose 9.4% during mid-day trading on Monday . The stock traded as high as $628.70 and last traded at $610.89. Approximately 3,619,385 shares changed hands during trading, a decline of 32% from the average daily volume of 5,324,905 shares. The stock had previously closed at $558.44.

Analyst Upgrades and Downgrades

A number of brokerages have commented on LITE. Morgan Stanley raised their price objective on Lumentum to $520.00 and gave the stock an "equal weight" rating in a research report on Monday, February 23rd. Mizuho raised their target price on Lumentum to $645.00 and gave the stock an "outperform" rating in a research report on Tuesday, February 17th. JPMorgan Chase & Co. raised their price objective on shares of Lumentum to $565.00 and gave the stock an "overweight" rating in a report on Wednesday, February 4th. Rosenblatt Securities increased their price target on shares of Lumentum to $580.00 and gave the stock a "buy" rating in a research report on Wednesday, February 4th. Finally, Needham & Company LLC upped their price objective on Lumentum to $850.00 and gave the company a "buy" rating in a research note on Wednesday, March 4th. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, Lumentum currently has an average rating of "Moderate Buy" and a consensus target price of $513.94.

Lumentum Stock Up 10.6%

The business's 50 day moving average price is $482.89 and its 200-day moving average price is $313.45. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.61 and a quick ratio of 0.45. The company has a market cap of $44.08 billion, a P/E ratio of 189.40 and a beta of 1.38.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its earnings results on Tuesday, February 3rd. The technology company reported $1.67 EPS for the quarter, topping the consensus estimate of $1.41 by $0.26. Lumentum had a return on equity of 17.27% and a net margin of 11.95%.The business had revenue of $665.50 million for the quarter, compared to the consensus estimate of $646.74 million. During the same period in the previous year, the business earned $0.42 EPS. Lumentum's revenue was up 65.5% compared to the same quarter last year. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. On average, analysts anticipate that Lumentum Holdings Inc. will post 0.03 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Yuen Wupen sold 3,157 shares of the stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $538.00, for a total transaction of $1,698,466.00. Following the sale, the insider directly owned 88,439 shares of the company's stock, valued at $47,580,182. This represents a 3.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Penny Herscher sold 4,849 shares of the business's stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $535.48, for a total transaction of $2,596,542.52. Following the completion of the transaction, the director owned 6,057 shares of the company's stock, valued at $3,243,402.36. This trade represents a 44.46% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 65,775 shares of company stock valued at $38,851,343. 0.43% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Lumentum

A number of institutional investors and hedge funds have recently made changes to their positions in LITE. EverSource Wealth Advisors LLC boosted its holdings in Lumentum by 363.9% in the third quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company's stock valued at $27,000 after acquiring an additional 131 shares during the last quarter. V Square Quantitative Management LLC bought a new position in shares of Lumentum in the 4th quarter valued at about $28,000. Truvestments Capital LLC grew its position in shares of Lumentum by 300.0% during the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company's stock worth $28,000 after buying an additional 57 shares during the period. Triumph Capital Management bought a new stake in shares of Lumentum during the fourth quarter worth approximately $30,000. Finally, Danske Bank A S acquired a new position in Lumentum in the third quarter valued at approximately $33,000. Institutional investors own 94.05% of the company's stock.

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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