Lumentum (NASDAQ:LITE) Stock Price Down 7.8% - What's Next?

Key Points

• Lumentum shares fell 7.8% in midday trading, with the stock dropping from a prior close of $957.24 to as low as $892.00 before last trading near $882.73.
• Despite the pullback, Wall Street sentiment remains bullish: analysts have a consensus rating of “Moderate Buy” and an average price target of $1,021.95, with several firms recently raising targets sharply.
• The company recently posted strong quarterly results, beating EPS estimates and reporting revenue up 90.1% year over year, while insiders also sold shares in recent weeks.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s stock price was down 7.8% during mid-day trading on Tuesday . The company traded as low as $892.00 and last traded at $882.7310. Approximately 1,335,888 shares changed hands during mid-day trading, a decline of 78% from the average daily volume of 5,959,113 shares. The stock had previously closed at $957.24.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on LITE shares. Rosenblatt Securities boosted their price objective on Lumentum from $900.00 to $1,300.00 and gave the company a "buy" rating in a research note on Wednesday, May 6th. Susquehanna boosted their price objective on Lumentum from $550.00 to $1,100.00 and gave the company a "positive" rating in a research note on Monday, April 20th. Loop Capital boosted their price objective on Lumentum from $900.00 to $1,400.00 and gave the company a "buy" rating in a research note on Tuesday, May 5th. B. Riley Financial reissued a "buy" rating on shares of Lumentum in a research note on Friday, May 1st. Finally, Citic Securities boosted their price objective on Lumentum from $620.00 to $1,186.00 in a research note on Monday, May 11th. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,021.95.

Lumentum Price Performance

The firm has a market capitalization of $69.17 billion, a P/E ratio of 163.90 and a beta of 1.47. The business has a 50-day moving average of $900.25 and a 200 day moving average of $636.73. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE - Get Free Report) last issued its earnings results on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, beating analysts' consensus estimates of $2.27 by $0.10. The business had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.21 million. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The firm's revenue was up 90.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, sell-side analysts predict that Lumentum Holdings Inc. will post 6.49 earnings per share for the current fiscal year.

Insider Activity

In other Lumentum news, Director Ian Small sold 4,954 shares of the business's stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $868.07, for a total transaction of $4,300,418.78. Following the completion of the sale, the director directly owned 21,008 shares of the company's stock, valued at approximately $18,236,414.56. The trade was a 19.08% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Wajid Ali sold 2,487 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 $2,372,473.65. Following the sale, the chief financial officer directly owned 60,951 shares of the company's stock, valued at $58,144,206.45. This represents a 3.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. In the last three months, insiders sold 41,260 shares of company stock worth $38,859,220. Company insiders own 0.43% of the company's stock.

Institutional Trading of Lumentum

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Parallel Advisors LLC increased its holdings in Lumentum by 71.8% during the 1st quarter. Parallel Advisors LLC now owns 560 shares of the technology company's stock worth $394,000 after purchasing an additional 234 shares in the last quarter. Caerus Investment Advisors LLC bought a new position in shares of Lumentum in the first quarter valued at approximately $346,000. Concorde Asset Management LLC bought a new position in shares of Lumentum in the first quarter valued at approximately $212,000. Glenmede Trust Co. NA grew its holdings in shares of Lumentum by 39.2% in the first quarter. Glenmede Trust Co. NA now owns 1,515 shares of the technology company's stock valued at $1,065,000 after acquiring an additional 427 shares in the last quarter. Finally, Essential Partners LLC grew its holdings in shares of Lumentum by 590.3% in the first quarter. Essential Partners LLC now owns 214 shares of the technology company's stock valued at $150,000 after acquiring an additional 183 shares in the last quarter. 94.05% of the stock is owned by institutional investors.

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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