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

Key Points

• Rosenblatt Securities has raised its target price for Lumentum from $150 to $225, indicating a potential upside of 33.35%.
• Lumentum recently reported a quarterly earnings of $0.88 EPS, surpassing analyst expectations, and showed significant year-over-year revenue growth of 55.9%.
• Insider transactions have seen significant sales, with insiders selling shares totaling approximately $6.6 million in the last quarter, which has decreased their ownership in the company.

Lumentum (NASDAQ:LITE - Get Free Report) had its target price hoisted by equities research analysts at Rosenblatt Securities from $150.00 to $225.00 in a research note issued to investors on Monday,Benzinga reports. The firm presently has a "buy" rating on the technology company's stock. Rosenblatt Securities' price objective would indicate a potential upside of 33.35% from the stock's current price.

A number of other research analysts have also commented on the stock. Raymond James Financial boosted their price target on shares of Lumentum from $125.00 to $145.00 and gave the company a "strong-buy" rating in a research report on Wednesday, August 13th. Needham & Company LLC reaffirmed a "buy" rating and set a $145.00 price objective (up from $135.00) on shares of Lumentum in a report on Wednesday, August 13th. Citigroup initiated coverage on shares of Lumentum in a report on Friday, August 29th. They set a "buy" rating and a $165.00 price objective for the company. KGI Securities initiated coverage on shares of Lumentum in a report on Monday, August 18th. They set an "outperform" rating for the company. Finally, Stifel Nicolaus lifted their price objective on shares of Lumentum from $100.00 to $132.00 and gave the stock a "buy" rating in a report on Wednesday, August 13th. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $133.36.

Lumentum Stock Down 1.6%

Lumentum stock opened at $168.73 on Monday. The firm has a 50 day simple moving average of $125.06 and a 200 day simple moving average of $90.29. The firm has a market capitalization of $11.79 billion, a price-to-earnings ratio of 733.61 and a beta of 1.42. The company has a current ratio of 4.37, a quick ratio of 3.18 and a debt-to-equity ratio of 2.26. Lumentum has a 1-year low of $45.65 and a 1-year high of $173.38.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings results on Tuesday, August 12th. The technology company reported $0.88 EPS for the quarter, beating analysts' consensus estimates of $0.79 by $0.09. The firm had revenue of $480.70 million during the quarter, compared to analyst estimates of $465.27 million. Lumentum had a net margin of 1.57% and a negative return on equity of 3.02%. The business's revenue for the quarter was up 55.9% on a year-over-year basis. During the same period in the previous year, the business earned $0.06 EPS. Lumentum has set its Q1 2026 guidance at 0.950-1.100 EPS. On average, analysts predict that Lumentum will post 0.03 earnings per share for the current year.

Insiders Place Their Bets

In other Lumentum news, insider Vincent Retort sold 22,719 shares of the company's stock in a transaction dated Tuesday, July 29th. The shares were sold at an average price of $110.00, for a total value of $2,499,090.00. Following the sale, the insider owned 121,747 shares in the company, valued at approximately $13,392,170. This represents a 15.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Wajid Ali sold 2,526 shares of the company's stock in a transaction dated Tuesday, August 26th. The stock was sold at an average price of $124.39, for a total transaction of $314,209.14. Following the completion of the sale, the chief financial officer owned 77,087 shares in the company, valued at approximately $9,588,851.93. This trade represents a 3.17% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 61,687 shares of company stock valued at $6,628,952. Insiders own 0.19% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in LITE. MAI Capital Management raised its position in Lumentum by 27.0% in the second quarter. MAI Capital Management now owns 452 shares of the technology company's stock worth $43,000 after acquiring an additional 96 shares during the period. Louisiana State Employees Retirement System raised its position in Lumentum by 0.5% in the second quarter. Louisiana State Employees Retirement System now owns 19,500 shares of the technology company's stock worth $1,854,000 after acquiring an additional 100 shares during the period. Thrivent Financial for Lutherans raised its position in Lumentum by 0.7% in the second quarter. Thrivent Financial for Lutherans now owns 16,340 shares of the technology company's stock worth $1,553,000 after acquiring an additional 115 shares during the period. Bessemer Group Inc. raised its position in Lumentum by 5.8% in the second quarter. Bessemer Group Inc. now owns 2,473 shares of the technology company's stock worth $234,000 after acquiring an additional 136 shares during the period. Finally, Keynote Financial Services LLC raised its position in Lumentum by 1.8% in the second quarter. Keynote Financial Services LLC now owns 8,396 shares of the technology company's stock worth $798,000 after acquiring an additional 148 shares during the period. Institutional investors own 94.05% of the company's stock.

About Lumentum

Lumentum Holdings Inc manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables.

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