Lumentum (NASDAQ:LITE) Stock Price Down 4.2% - Should You Sell?

Key Points

• Lumentum shares fell 4.2% on Monday, trading as low as $761.53 before last changing hands at $768.15, with volume running well below average.
• Despite the pullback, Wall Street remains constructive: 14 analysts rate the stock a Buy and the consensus price target is $1,012.67, while several firms recently raised targets or reiterated bullish ratings.
• The company recently reported better-than-expected EPS of $2.37 on revenue of $808.4 million, and it also highlighted strong year-over-year revenue growth of 90.1%; however, insiders have sold shares in recent months.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) shares fell 4.2% on Monday . The company traded as low as $761.53 and last traded at $768.15. Approximately 3,673,767 shares traded hands during trading, a decline of 37% from the average session volume of 5,876,869 shares. The stock had previously closed at $802.01.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. Jefferies Financial Group reissued a "buy" rating and issued a $1,200.00 price target on shares of Lumentum in a research note on Wednesday, May 6th. JPMorgan Chase & Co. increased their price objective on shares of Lumentum from $950.00 to $1,130.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Mizuho set a $1,100.00 target price on Lumentum in a research report on Wednesday, May 6th. Morgan Stanley boosted their target price on Lumentum from $710.00 to $900.00 and gave the company an "equal weight" rating in a research report on Wednesday, May 6th. Finally, B. Riley Financial restated a "buy" rating on shares of Lumentum in a research note on Friday, May 1st. Fourteen investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, Lumentum currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,012.67.

Lumentum Price Performance

The company has a market capitalization of $59.76 billion, a PE ratio of 142.25 and a beta of 1.48. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97. The stock's 50 day simple moving average is $882.31 and its 200-day simple moving average is $700.26.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, beating the consensus estimate of $2.27 by $0.10. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The business 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 earnings per share. The business's revenue for the quarter was up 90.1% compared to the same quarter last year. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, equities analysts forecast that Lumentum Holdings Inc. will post 6.4 earnings per share for the current fiscal year.

Insider Buying and Selling at Lumentum

In related news, CFO Wajid Ali sold 2,487 shares of Lumentum stock in a transaction on Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $2,372,473.65. Following the completion of the transaction, the chief financial officer directly owned 60,951 shares in the company, valued at approximately $58,144,206.45. This trade represents a 3.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, 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, Director Isaac Hosojiro Harris sold 1,416 shares of the business's stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $1,000.08, for a total value of $1,416,113.28. Following the transaction, the director directly owned 6,984 shares of the company's stock, valued at $6,984,558.72. The trade was a 16.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 41,260 shares of company stock valued at $38,859,220. Insiders own 0.43% of the company's stock.

Hedge Funds Weigh In On Lumentum

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Hilton Head Capital Partners LLC acquired a new position in Lumentum during the 1st quarter worth approximately $25,000. Sachetta LLC increased its position in shares of Lumentum by 118.8% in the 1st quarter. Sachetta LLC now owns 35 shares of the technology company's stock valued at $25,000 after purchasing an additional 19 shares during the last quarter. V Square Quantitative Management LLC acquired a new stake in shares of Lumentum in the 4th quarter valued at $28,000. Truvestments Capital LLC raised its holdings in shares of Lumentum by 300.0% in the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company's stock valued at $28,000 after purchasing an additional 57 shares in the last quarter. Finally, Triumph Capital Management purchased a new stake in shares of Lumentum during the 4th quarter worth $30,000. 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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