Lumentum (NASDAQ:LITE) Stock Price Down 4.1% - What's Next?

Key Points

• Lumentum's stock price fell by 4.1%, closing at $162.84 after trading as low as $165.00, with a significant decrease in trading volume.
• Multiple analysts have rated Lumentum with a consensus target price of $133.36, including a "buy" rating from Citigroup and a "strong buy" rating from Raymond James Financial.
• In its latest earnings report, Lumentum posted $0.88 EPS, exceeding estimates, while revenue increased by 55.9% year-over-year, prompting analysts to project a range of $0.950-1.100 EPS for Q1 2026.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s stock price fell 4.1% during trading on Friday . The stock traded as low as $165.00 and last traded at $162.84. 310,286 shares were traded during trading, a decline of 89% from the average session volume of 2,769,428 shares. The stock had previously closed at $169.75.

Analysts Set New Price Targets

LITE has been the topic of several analyst reports. Citigroup initiated coverage on shares of Lumentum in a research note on Friday, August 29th. They set a "buy" rating and a $165.00 price target on the stock. KGI Securities started coverage on Lumentum in a research note on Monday, August 18th. They set an "outperform" rating on the stock. Weiss Ratings reissued a "hold (c-)" rating on shares of Lumentum in a research report on Saturday, September 27th. Raymond James Financial lifted their price objective on shares of Lumentum from $125.00 to $145.00 and gave the stock a "strong-buy" rating in a report on Wednesday, August 13th. Finally, Morgan Stanley upped their target price on Lumentum from $92.00 to $100.00 and gave the company an "equal weight" rating in a report on Wednesday, August 13th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $133.36.

Lumentum Trading Down 3.5%

The firm has a 50-day moving average price of $136.35 and a 200-day moving average price of $96.15. The company has a market capitalization of $11.45 billion, a price-to-earnings ratio of 712.22 and a beta of 1.42. The company has a current ratio of 4.37, a quick ratio of 3.18 and a debt-to-equity ratio of 2.26.

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

Insider Activity

In other Lumentum news, Director Julia Suzanne Johnson sold 1,250 shares of the firm's stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $119.06, for a total value of $148,825.00. Following the completion of the transaction, the director directly owned 22,037 shares in the company, valued at $2,623,725.22. This trade represents a 5.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Vincent Retort sold 22,719 shares of the firm's stock in a transaction that occurred on Tuesday, July 29th. The stock was sold at an average price of $110.00, for a total transaction of $2,499,090.00. Following the completion of the transaction, the insider directly owned 121,747 shares of the company's stock, valued at $13,392,170. This represents a 15.73% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 41,687 shares of company stock worth $4,759,552. 0.19% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its holdings in shares of Lumentum by 0.6% during the 1st quarter. Vanguard Group Inc. now owns 7,430,185 shares of the technology company's stock valued at $463,198,000 after acquiring an additional 47,811 shares in the last quarter. Cambridge Investment Research Advisors Inc. acquired a new position in Lumentum in the 1st quarter worth about $260,000. UMB Bank n.a. raised its stake in shares of Lumentum by 132.9% during the 1st quarter. UMB Bank n.a. now owns 785 shares of the technology company's stock worth $49,000 after purchasing an additional 448 shares in the last quarter. FORA Capital LLC acquired a new stake in shares of Lumentum during the 1st quarter valued at about $642,000. Finally, Principal Financial Group Inc. increased its holdings in Lumentum by 1.1% in the first quarter. Principal Financial Group Inc. now owns 159,154 shares of the technology company's stock worth $9,922,000 after buying an additional 1,660 shares during the last quarter. Institutional investors and hedge funds own 94.05% of the company's stock.

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.

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