Lumentum (NASDAQ:LITE) Stock Price Down 6.8% - Time to Sell?

Key Points

• Lumentum shares fell 6.8% on Monday to about $654.79 (intraday low $642.37) on roughly 7.36M shares traded, a ~23% increase versus average volume.
• The company beat quarterly expectations with EPS $1.67 (vs. $1.41) and revenue $665.5M (up 65.5% YoY), and issued Q3 2026 guidance of $2.15–$2.35 EPS.
• Analysts hold a consensus "Moderate Buy" with an average price target of $575.06 (range ~$350–$900), while insiders sold about $38.9M of stock in the last 90 days and institutions own ~94% of shares.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s share price dropped 6.8% during trading on Monday . The company traded as low as $642.37 and last traded at $654.79. Approximately 7,355,676 shares traded hands during trading, an increase of 23% from the average daily volume of 5,964,343 shares. The stock had previously closed at $702.73.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on LITE. Stifel Nicolaus raised their target price on Lumentum to $800.00 and gave the stock a "buy" rating in a report on Monday, March 2nd. JPMorgan Chase & Co. increased their price target on shares of Lumentum to $565.00 and gave the company an "overweight" rating in a research report on Wednesday, February 4th. Needham & Company LLC lifted their price objective on shares of Lumentum to $850.00 and gave the stock a "buy" rating in a research note on Wednesday, March 4th. Rosenblatt Securities restated a "buy" rating and set a $900.00 price objective on shares of Lumentum in a report on Wednesday, March 18th. Finally, Northland Securities set a $350.00 target price on shares of Lumentum in a research note on Wednesday, December 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $575.06.

Lumentum Stock Down 6.8%

The company has a market capitalization of $46.75 billion, a P/E ratio of 200.86 and a beta of 1.38. The company has a quick ratio of 0.45, a current ratio of 0.61 and a debt-to-equity ratio of 0.06. The firm has a fifty day simple moving average of $582.14 and a 200-day simple moving average of $372.19.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings data on Tuesday, February 3rd. The technology company reported $1.67 earnings per share for the quarter, beating the consensus estimate of $1.41 by $0.26. Lumentum had a return on equity of 17.27% and a net margin of 11.95%.The business had revenue of $665.50 million for the quarter, compared to analysts' expectations of $646.74 million. During the same quarter in the previous year, the business posted $0.42 EPS. Lumentum's revenue for the quarter was up 65.5% on a year-over-year basis. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. On average, equities research analysts expect that Lumentum Holdings Inc. will post 0.03 EPS for the current fiscal year.

Insider Activity at Lumentum

In other Lumentum news, CFO Wajid Ali sold 5,302 shares of the stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $691.13, for a total transaction of $3,664,371.26. Following the completion of the transaction, the chief financial officer owned 66,287 shares in the company, valued at approximately $45,812,934.31. This represents a 7.41% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Penny Herscher sold 4,000 shares of Lumentum stock in a transaction dated Thursday, February 12th. The shares were sold at an average price of $597.29, for a total value of $2,389,160.00. Following the completion of the sale, the director directly owned 2,057 shares in the company, valued at $1,228,625.53. This represents a 66.04% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 65,775 shares of company stock valued at $38,851,343. Insiders own 0.43% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Truvestments Capital LLC lifted its stake in 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 acquiring an additional 57 shares in the last quarter. V Square Quantitative Management LLC bought a new position in shares of Lumentum during the 4th quarter worth approximately $28,000. Triumph Capital Management acquired a new stake in shares of Lumentum in the fourth quarter valued at approximately $30,000. Harbour Investments Inc. lifted its position in shares of Lumentum by 675.0% in the fourth quarter. Harbour Investments Inc. now owns 93 shares of the technology company's stock worth $34,000 after purchasing an additional 81 shares in the last quarter. Finally, Chesapeake Asset Management LLC bought a new stake in shares of Lumentum in the fourth quarter worth $37,000. 94.05% of the stock is currently owned by 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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