Lumentum (NASDAQ:LITE) Trading Down 3.8% - Should You Sell?

Key Points

• Lumentum's stock price fell by 3.8%, trading as low as $165.40, with a volume decrease of 67% from the average sessions.
• Recent analyst ratings have been favorable, with multiple firms raising target prices, and the consensus rating is a "Moderate Buy" with an average target of $128.00.
• Lumentum reported an earnings beat for the latest quarter, with an EPS of $0.88 compared to the estimate of $0.79, and a revenue increase of 55.9% year-over-year.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) traded down 3.8% during mid-day trading on Wednesday . The stock traded as low as $165.40 and last traded at $164.33. 909,665 shares traded hands during mid-day trading, a decline of 67% from the average session volume of 2,722,912 shares. The stock had previously closed at $170.90.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the stock. Stifel Nicolaus raised their price target on shares of Lumentum from $100.00 to $132.00 and gave the stock a "buy" rating in a research report on Wednesday, August 13th. B. Riley increased their price objective on shares of Lumentum from $73.00 to $83.00 and gave the company a "neutral" rating in a research note on Wednesday, August 13th. Bank of America upgraded shares of Lumentum from an "underperform" rating to a "neutral" rating and lifted their target price for the company from $78.00 to $135.00 in a research report on Wednesday, August 13th. JPMorgan Chase & Co. lifted their target price on shares of Lumentum from $123.00 to $145.00 and gave the company an "overweight" rating in a research report on Thursday, August 14th. Finally, Raymond James Financial lifted their target price on shares of Lumentum from $125.00 to $145.00 and gave the company a "strong-buy" rating in a research report on Wednesday, August 13th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $128.00.

Lumentum Price Performance

The stock has a market capitalization of $11.79 billion, a price-to-earnings ratio of 733.61 and a beta of 1.42. The company has a quick ratio of 3.18, a current ratio of 4.37 and a debt-to-equity ratio of 2.26. The business's 50 day simple moving average is $125.06 and its 200-day simple moving average is $90.29.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its earnings results on Tuesday, August 12th. The technology company reported $0.88 EPS for the quarter, topping analysts' consensus estimates of $0.79 by $0.09. Lumentum had a net margin of 1.57% and a negative return on equity of 3.02%. The firm had revenue of $480.70 million during the quarter, compared to analysts' expectations of $465.27 million. During the same quarter in the prior year, the business earned $0.06 earnings per share. The business's revenue for the quarter was up 55.9% compared to the same quarter last year. Lumentum has set its Q1 2026 guidance at 0.950-1.100 EPS. On average, research analysts forecast that Lumentum Holdings Inc. will post 0.03 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Wajid Ali sold 2,526 shares of Lumentum stock in a transaction on Tuesday, August 26th. The shares were sold at an average price of $124.39, for a total value of $314,209.14. Following the completion of the sale, the chief financial officer owned 77,087 shares of the company's stock, valued at approximately $9,588,851.93. This trade represents a 3.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, SVP Jae Kim sold 4,507 shares of Lumentum stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $116.88, for a total transaction of $526,778.16. Following the completion of the sale, the senior vice president directly owned 33,465 shares of the company's stock, valued at approximately $3,911,389.20. The trade was a 11.87% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 61,687 shares of company stock worth $6,628,952 over the last ninety days. 0.19% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lumentum

Hedge funds and other institutional investors have recently made changes to their positions in the stock. FNY Investment Advisers LLC purchased a new position in shares of Lumentum in the 2nd quarter worth about $38,000. Skandinaviska Enskilda Banken AB publ purchased a new stake in Lumentum during the first quarter valued at about $25,000. MAI Capital Management lifted its holdings in Lumentum by 27.0% during the second quarter. MAI Capital Management now owns 452 shares of the technology company's stock valued at $43,000 after purchasing an additional 96 shares during the last quarter. Rakuten Securities Inc. lifted its holdings in Lumentum by 164.4% during the first quarter. Rakuten Securities Inc. now owns 476 shares of the technology company's stock valued at $30,000 after purchasing an additional 296 shares during the last quarter. Finally, Golden State Wealth Management LLC lifted its holdings in Lumentum by 103.2% during the first quarter. Golden State Wealth Management LLC now owns 512 shares of the technology company's stock valued at $32,000 after purchasing an additional 260 shares during the last quarter. 94.05% of the stock is owned by hedge funds and other institutional investors.

Lumentum Company Profile

Lumentum Holdings Inc manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables.