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

Key Points

• Lumentum shares rose 9.4% in Tuesday trading, closing at $837.56 after briefly reaching $843.00. Volume was lighter than usual, with about 4.0 million shares changing hands versus a 5.8 million average.
• Analyst sentiment remains broadly positive, with several firms raising price targets and the stock carrying a Moderate Buy consensus rating. MarketBeat says 14 analysts rate it Buy and seven rate it Hold, with a consensus price target of $1,012.67.
• The company recently reported strong quarterly results, beating EPS estimates at $2.37 and posting 90.1% year-over-year revenue growth. Lumentum also gave Q4 2026 guidance of $2.85 to $3.05 EPS.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s share price rose 9.4% during trading on Tuesday . The company traded as high as $843.00 and last traded at $837.56. Approximately 4,018,249 shares traded hands during trading, a decline of 31% from the average session volume of 5,803,728 shares. The stock had previously closed at $765.55.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on LITE shares. Craig Hallum upped their price objective on Lumentum from $900.00 to $1,150.00 in a research note on Wednesday, May 6th. Weiss Ratings reiterated a "hold (c)" rating on shares of Lumentum in a research note on Friday. Rosenblatt Securities increased their price target on shares of Lumentum from $900.00 to $1,300.00 and gave the company a "buy" rating in a research report on Wednesday, May 6th. Susquehanna raised their price objective on shares of Lumentum from $550.00 to $1,100.00 and gave the stock a "positive" rating in a report on Monday, April 20th. Finally, B. Riley Financial reaffirmed a "buy" rating on shares of Lumentum in a research report on Friday, May 1st. Fourteen research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $1,012.67.

Lumentum Price Performance

The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01. The business has a 50-day moving average price of $859.31 and a 200 day moving average price of $715.91. The stock has a market cap of $65.16 billion, a PE ratio of 155.10 and a beta of 1.48.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, topping the consensus estimate of $2.27 by $0.10. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The company had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.21 million. During the same quarter last year, the firm posted $0.57 EPS. The firm's revenue for the quarter was up 90.1% on a year-over-year basis. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, research analysts forecast that Lumentum Holdings Inc. will post 6.42 earnings per share for the current fiscal year.

Insider Transactions at Lumentum

In related news, insider Vincent Retort sold 3,183 shares of the firm's 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 $3,036,422.85. Following the completion of the transaction, the insider directly owned 89,563 shares of the company's stock, valued at approximately $85,438,623.85. This trade represents a 3.43% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, 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 Yuen Wupen sold 3,210 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $3,062,179.50. Following the sale, the insider owned 81,488 shares in the company, valued at approximately $77,735,477.60. This represents a 3.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 three months, insiders have sold 41,260 shares of company stock valued at $38,859,220. 0.43% of the stock is currently owned by insiders.

Institutional Trading of Lumentum

Institutional investors have recently added to or reduced their stakes in the stock. Nomura Asset Management Co. Ltd. lifted its holdings in shares of Lumentum by 45.0% during the 4th quarter. Nomura Asset Management Co. Ltd. now owns 369,804 shares of the technology company's stock worth $136,306,000 after acquiring an additional 114,714 shares during the last quarter. Andar Capital Management HK Ltd bought a new position in Lumentum in the fourth quarter valued at $4,325,000. Whittier Trust Co. raised its position in Lumentum by 21,806.5% during the first quarter. Whittier Trust Co. now owns 74,044 shares of the technology company's stock valued at $57,183,000 after purchasing an additional 73,706 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. purchased a new stake in Lumentum during the fourth quarter valued at about $6,755,000. Finally, Financiere des Professionnels Fonds d investissement inc. bought a new stake in Lumentum during the first quarter worth about $2,046,000. Hedge funds and other 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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