Lumentum (NASDAQ:LITE) Trading Down 3.8% - What's Next?

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) fell 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 were traded during trading, a decline of 67% from the average session volume of 2,722,912 shares. The stock had previously closed at $170.90.

Analysts Set New Price Targets

LITE has been the subject of a number of research reports. B. Riley increased their price target on shares of Lumentum from $73.00 to $83.00 and gave the stock a "neutral" rating in a research note on Wednesday, August 13th. Needham & Company LLC reiterated a "buy" rating and set a $145.00 target price (up previously from $135.00) on shares of Lumentum in a report on Wednesday, August 13th. Stifel Nicolaus increased their target price on Lumentum from $100.00 to $132.00 and gave the stock a "buy" rating in a research report on Wednesday, August 13th. JPMorgan Chase & Co. raised their target price on Lumentum from $123.00 to $145.00 and gave the company an "overweight" rating in a research note on Thursday, August 14th. Finally, Wolfe Research began coverage on Lumentum in a research note on Tuesday, August 12th. They issued an "outperform" rating on the stock. 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's stock. According to MarketBeat, Lumentum has a consensus rating of "Moderate Buy" and a consensus target price of $128.00.

Lumentum Price Performance

The firm has a 50-day moving average of $125.06 and a 200 day moving average of $90.08. The company has a market capitalization of $11.79 billion, a PE ratio of 733.61 and a beta of 1.42. The company has a debt-to-equity ratio of 2.26, a current ratio of 4.37 and a quick ratio of 3.18.

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

Insider Activity at Lumentum

In related news, CFO Wajid Ali sold 2,526 shares of the firm's stock in a transaction that occurred 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 sale, the chief financial officer owned 77,087 shares in the company, valued at approximately $9,588,851.93. This trade represents a 3.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Yuen Wupen sold 3,282 shares of the business's stock in a transaction on Monday, August 25th. The shares were sold at an average price of $119.25, for a total transaction of $391,378.50. Following the sale, the insider owned 104,554 shares of the company's stock, valued at approximately $12,468,064.50. This represents a 3.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 61,687 shares of company stock valued at $6,628,952 over the last quarter. 0.19% of the stock is owned by company insiders.

Institutional Trading of Lumentum

A number of hedge funds have recently bought and sold shares of LITE. Osaic Holdings Inc. boosted its position in Lumentum by 190.8% in the second quarter. Osaic Holdings Inc. now owns 20,439 shares of the technology company's stock worth $1,942,000 after purchasing an additional 13,410 shares during the last quarter. Thrivent Financial for Lutherans increased its position in shares of Lumentum by 0.7% during the 2nd quarter. Thrivent Financial for Lutherans now owns 16,340 shares of the technology company's stock valued at $1,553,000 after purchasing an additional 115 shares during the last quarter. Cim Investment Management Inc. lifted its stake in shares of Lumentum by 100.8% in the 2nd quarter. Cim Investment Management Inc. now owns 9,622 shares of the technology company's stock worth $860,000 after purchasing an additional 4,829 shares during the period. Marex Group plc purchased a new position in shares of Lumentum in the second quarter worth approximately $287,000. Finally, Advisory Services Network LLC purchased a new position in shares of Lumentum in the second quarter worth approximately $625,000. Hedge funds and other institutional investors own 94.05% of the company's stock.

About Lumentum

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.