Lumentum (NASDAQ:LITE) Stock Price Expected to Rise, Northland Securities Analyst Says

Key Points

• Northland Securities raised its price target on Lumentum from $1,000 to $1,200 and kept an outperform rating, implying about 16.6% upside from the current price.
• Other analysts remain mostly positive, with several firms issuing buy or outperform calls; the stock currently carries a Moderate Buy consensus and an average price target of about $1,021.95.
• Lumentum reported strong quarterly results, including EPS of $2.37 versus estimates of $2.27 and revenue up 90.1% year over year, while the article also notes recent insider selling and heavy institutional ownership.

Lumentum (NASDAQ:LITE - Get Free Report) had its price target boosted by equities research analysts at Northland Securities from $1,000.00 to $1,200.00 in a report released on Wednesday,MarketScreener reports. The firm currently has an "outperform" rating on the technology company's stock. Northland Securities' target price indicates a potential upside of 16.60% from the stock's current price.

Other equities research analysts have also recently issued research reports about the company. Raymond James Financial reissued an "outperform" rating and issued a $1,014.00 price objective on shares of Lumentum in a research note on Wednesday, May 6th. Jefferies Financial Group reaffirmed a "buy" rating and set a $1,200.00 target price on shares of Lumentum in a research report on Wednesday, May 6th. TD Cowen lifted their price target on shares of Lumentum from $875.00 to $995.00 and gave the company a "hold" rating in a research report on Wednesday, May 6th. Stifel Nicolaus boosted their price target on shares of Lumentum from $800.00 to $1,100.00 and gave the company a "buy" rating in a research note on Tuesday, May 5th. Finally, Bank of America upped their price objective on shares of Lumentum to $520.00 and gave the stock a "neutral" rating in a report on Wednesday, February 4th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $1,021.95.

Lumentum Stock Performance

Shares of LITE stock opened at $1,029.15 on Wednesday. The firm has a 50 day moving average of $865.06 and a 200-day moving average of $590.51. The company has a market cap of $80.07 billion, a price-to-earnings ratio of 190.58 and a beta of 1.47. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01. Lumentum has a 52 week low of $75.62 and a 52 week high of $1,085.68.

Lumentum (NASDAQ:LITE - Get Free Report) last issued its earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, topping 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 for the quarter, compared to analyst estimates of $810.21 million. During the same period 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. On average, equities analysts forecast that Lumentum will post 6.49 earnings per share for the current year.

Insider Transactions at Lumentum

In related news, insider Yuen Wupen sold 3,210 shares of the business's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $953.95, for a total transaction of $3,062,179.50. Following the transaction, the insider owned 81,488 shares in the company, valued at $77,735,477.60. The trade was a 3.79% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 Ian Small sold 4,954 shares of Lumentum stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $868.07, for a total value of $4,300,418.78. Following the completion of the sale, the director owned 21,008 shares in the company, valued at approximately $18,236,414.56. This represents a 19.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 39,844 shares of company stock valued at $37,443,107. 0.43% of the stock is currently owned by insiders.

Institutional Trading of Lumentum

Several large investors have recently added to or reduced their stakes in the stock. Sachetta LLC increased its position in Lumentum by 118.8% during 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 period. Hilton Head Capital Partners LLC bought a new stake in shares of Lumentum during the 1st quarter valued at about $25,000. Abel Hall LLC increased its position in shares of Lumentum by 5.5% during the first quarter. Abel Hall LLC now owns 693 shares of the technology company's stock valued at $487,000 after buying an additional 36 shares during the period. Checchi Capital Advisers LLC increased its position in shares of Lumentum by 5.1% during the first quarter. Checchi Capital Advisers LLC now owns 790 shares of the technology company's stock valued at $555,000 after buying an additional 38 shares during the period. Finally, 180 Wealth Advisors LLC raised its stake in Lumentum by 2.9% in the first quarter. 180 Wealth Advisors LLC now owns 1,553 shares of the technology company's stock worth $1,092,000 after buying an additional 44 shares in the last quarter. Institutional investors own 94.05% of the company's stock.

Lumentum News Roundup

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Nvidia’s commentary on the need for optical interconnects in AI data centers has strengthened the investment case for Lumentum as a photonics supplier benefiting from AI infrastructure spending. Nvidia Optics Shift Puts Lumentum At Center Of AI Data Centers
• Positive Sentiment: Traders reacted to a bullish “Power Inflow” signal, which suggests strong buying interest and helped reinforce the recent breakout in Lumentum shares. Lumentum Shares Rise Over 7 Percent After Key Trading Signal
• Positive Sentiment: Analysts and market commentary pointed to improving AI laser-chip momentum, including record EML shipments and stronger 200G demand, which could support future revenue growth. Lumentum's AI Laser Chip Momentum Builds: More Upside Ahead?
• Positive Sentiment: Broader optimism across optical networking stocks, including Lumentum, has added momentum as investors bet AI data center spending will continue to accelerate. Why Lumentum, Coherent and other optical stocks are rocketing toward big gains
• Neutral Sentiment: A director sold 4,000 shares in a pre-arranged Rule 10b5-1 plan, which is worth noting but does not necessarily signal a change in fundamentals. Lumentum NASDAQ: LITE Director Isaac Hosojiro Harris Sells 4,000 Shares of 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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