Lumentum (NASDAQ:LITE) Stock Price Down 11.4% - What's Next?

Key Points

• Shares fell 11.4% to about $689 on Thursday with volume slightly above average, though the stock remains above its 50‑day ($567.66) and 200‑day ($363.11) moving averages and well above the consensus price target of $575.06.
• Quarterly results beat expectations—EPS $1.67 vs. $1.41 consensus and revenue $665.5M (+65.5% YoY)—and the company guided Q3 2026 EPS to a range of $2.150–$2.350.
• Analysts hold a "Moderate Buy" consensus with several recent target upgrades, but insiders have sold roughly 65,775 shares (~$38.9M) in the past 90 days while institutional ownership is very high (~94%).

Shares of Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) were down 11.4% on Thursday . The stock traded as low as $687.58 and last traded at $688.80. Approximately 6,180,376 shares were traded during trading, an increase of 4% from the average daily volume of 5,958,183 shares. The stock had previously closed at $777.17.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Mizuho increased their price target on shares of Lumentum to $645.00 and gave the company an "outperform" rating in a research note on Tuesday, February 17th. UBS Group boosted their price objective on shares of Lumentum from $215.00 to $455.00 and gave the stock a "neutral" rating in a research report on Wednesday, February 4th. Zacks Research upgraded shares of Lumentum from a "hold" rating to a "strong-buy" rating in a report on Tuesday, December 2nd. B. Riley Financial raised shares of Lumentum from a "neutral" rating to a "buy" rating and increased their target price for the company from $147.00 to $526.00 in a research report on Wednesday, February 4th. Finally, TD Cowen initiated coverage on shares of Lumentum in a research note on Thursday, March 12th. They set a "hold" rating and a $675.00 price target on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $575.06.

Lumentum Stock Performance

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 stock has a 50 day simple moving average of $567.66 and a two-hundred day simple moving average of $363.11. The company has a market cap of $49.18 billion, a PE ratio of 211.29 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 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.41 by $0.26. The business had revenue of $665.50 million for the quarter, compared to analyst estimates of $646.74 million. Lumentum had a net margin of 11.95% and a return on equity of 17.27%. The company's revenue for the quarter was up 65.5% compared to the same quarter last year. During the same period last year, the firm posted $0.42 earnings per share. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. Equities analysts predict that Lumentum Holdings Inc. will post 0.03 EPS for the current year.

Insider Buying and Selling at Lumentum

In other Lumentum news, insider Vincent Retort sold 45,026 shares of Lumentum stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $591.32, for a total value of $26,624,774.32. Following the transaction, the insider directly owned 102,455 shares in the company, valued at approximately $60,583,690.60. The trade was a 30.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Yuen Wupen sold 3,157 shares of the company's stock in a transaction dated 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 completion of the sale, the insider directly owned 88,439 shares of the company's stock, valued at $47,580,182. The trade was a 3.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 65,775 shares of company stock valued at $38,851,343. Company insiders own 0.43% of the company's stock.

Hedge Funds Weigh In On Lumentum

A number of hedge funds and other institutional investors have recently bought and sold shares of LITE. Federated Hermes Inc. lifted its position in Lumentum by 7,168.8% in the third quarter. Federated Hermes Inc. now owns 362,352 shares of the technology company's stock valued at $58,958,000 after purchasing an additional 357,367 shares during the period. FengHe Fund Management Pte. Ltd. acquired a new position in Lumentum during the 3rd quarter worth approximately $71,771,000. Pacer Advisors Inc. purchased a new position in shares of Lumentum during the 3rd quarter worth approximately $1,512,000. Headwater Capital Co Ltd purchased a new position in shares of Lumentum during the 3rd quarter worth approximately $20,339,000. Finally, China Universal Asset Management Co. Ltd. acquired a new stake in shares of Lumentum in the 3rd quarter valued at approximately $1,383,000. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

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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