Lumentum (NASDAQ:LITE) Stock Price Down 4.4% - What's Next?

Key Points

• Lumentum shares fell 4.4% on Tuesday, with trading volume below average as the stock pulled back from its prior close of $731.25.
• Despite the drop, Wall Street remains constructive: analysts have an average Moderate Buy rating and a consensus price target of $1,021.95, with several firms recently raising targets and ratings.
• The company beat quarterly EPS estimates and posted 90.1% year-over-year revenue growth, while insiders have also been selling shares in recent months under pre-arranged trading plans.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) was down 4.4% during trading on Tuesday . The company traded as low as $680.43 and last traded at $698.91. 3,655,151 shares traded hands during trading, a decline of 38% from the average session volume of 5,939,536 shares. The stock had previously closed at $731.25.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on LITE. Zacks Research upgraded shares of Lumentum from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, May 13th. Citigroup raised their price target on Lumentum from $800.00 to $1,100.00 and gave the company a "buy" rating in a report on Tuesday, April 21st. Stifel Nicolaus boosted their price objective on Lumentum from $800.00 to $1,100.00 and gave the company a "buy" rating in a research report on Tuesday, May 5th. TD Cowen upped their price objective on Lumentum from $875.00 to $995.00 and gave the stock a "hold" rating in a research note on Wednesday, May 6th. Finally, UBS Group lifted their target price on Lumentum from $455.00 to $960.00 and gave the company a "neutral" rating in a research note on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, Lumentum currently has an average rating of "Moderate Buy" and an average price target of $1,021.95.

Lumentum Stock Performance

The business's fifty day moving average is $890.24 and its two-hundred day moving average is $689.17. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01. The stock has a market capitalization of $54.38 billion, a PE ratio of 129.43 and a beta of 1.48.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.27 by $0.10. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The company had revenue of $808.40 million for the quarter, compared to the consensus estimate of $810.21 million. During the same quarter in the prior year, the firm earned $0.57 earnings per share. Lumentum's revenue was up 90.1% on a year-over-year basis. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, research analysts anticipate that Lumentum Holdings Inc. will post 6.4 EPS for the current fiscal year.

Insider Transactions at Lumentum

In other Lumentum news, insider Vincent Retort sold 3,183 shares of the business's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $3,036,422.85. Following the sale, the insider owned 89,563 shares of the company's stock, valued at $85,438,623.85. The trade was a 3.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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 Lumentum stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $1,000.08, for a total value of $1,416,113.28. Following the completion of the sale, 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. Insiders have sold 41,260 shares of company stock worth $38,859,220 in the last three months. Company insiders own 0.43% of the company's stock.

Institutional Investors Weigh In On Lumentum

Institutional investors have recently modified their holdings of the company. Arrowstreet Capital Limited Partnership boosted its position in shares of Lumentum by 8,579.2% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company's stock worth $254,350,000 after acquiring an additional 1,545,199 shares during the last quarter. Norges Bank purchased a new stake in shares of Lumentum during the 4th quarter valued at $474,495,000. Value Aligned Research Advisors LLC acquired a new stake in shares of Lumentum during the 4th quarter worth $432,062,000. Situational Awareness LP increased its stake in Lumentum by 210.9% during the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company's stock worth $478,577,000 after acquiring an additional 880,800 shares during the last quarter. Finally, Assenagon Asset Management S.A. grew its holdings in shares of Lumentum by 707.0% during the 4th quarter. Assenagon Asset Management S.A. now owns 994,478 shares of the technology company's stock worth $366,555,000 after purchasing an additional 871,249 shares during the period. 94.05% of the stock is 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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