Lumentum (NASDAQ:LITE) Stock Price Expected to Rise, Stifel Nicolaus Analyst Says

Key Points

• Stifel Nicolaus raised its price target for Lumentum from $100.00 to $132.00, indicating a potential upside of 10.31% from its current price.
• Analysts have generally rated Lumentum positively, with eleven analysts
• Lumentum reported a 55.9% year-over-year increase in revenue, achieving $480.70 million for the quarter, exceeding analysts' expectations.

Lumentum (NASDAQ:LITE - Get Free Report) had its price target lifted by Stifel Nicolaus from $100.00 to $132.00 in a research note issued on Wednesday,Benzinga reports. The brokerage currently has a "buy" rating on the technology company's stock. Stifel Nicolaus' price objective would suggest a potential upside of 10.31% from the company's current price.

A number of other analysts have also weighed in on the stock. Rosenblatt Securities restated a "buy" rating and set a $105.00 price objective on shares of Lumentum in a research note on Thursday, June 12th. Raymond James Financial raised their price objective on shares of Lumentum from $80.00 to $90.00 and gave the stock a "strong-buy" rating in a report on Wednesday, June 4th. Wolfe Research began coverage on shares of Lumentum in a report on Tuesday. They set an "outperform" rating on the stock. B. Riley boosted their target price on shares of Lumentum from $65.00 to $73.00 and gave the stock a "neutral" rating in a report on Wednesday, June 4th. Finally, Barclays set a $135.00 target price on shares of Lumentum and gave the stock an "overweight" rating in a report on Wednesday. Four investment analysts have rated the stock with a hold rating, eleven have assigned a buy rating and two have assigned a strong buy rating to the company's stock. According to data from MarketBeat, Lumentum currently has a consensus rating of "Moderate Buy" and an average price target of $102.67.

Lumentum Stock Up 4.0%

Shares of NASDAQ:LITE opened at $119.66 on Wednesday. Lumentum has a 52-week low of $44.77 and a 52-week high of $120.30. The firm has a fifty day moving average of $96.45 and a 200 day moving average of $78.01. The firm has a market capitalization of $8.30 billion, a PE ratio of -18.55 and a beta of 1.33. The company has a debt-to-equity ratio of 2.91, a quick ratio of 3.53 and a current ratio of 4.72.

Lumentum (NASDAQ:LITE - Get Free Report) last issued its quarterly earnings results on Tuesday, August 12th. The technology company reported $0.88 EPS for the quarter, topping analysts' consensus estimates of $0.79 by $0.09. Lumentum had a negative return on equity of 8.69% and a negative net margin of 29.87%. The firm had revenue of $480.70 million for the quarter, compared to analysts' expectations of $465.27 million. During the same period in the previous year, the firm posted $0.06 EPS. The business's revenue for the quarter was up 55.9% compared to the same quarter last year. As a group, research analysts anticipate that Lumentum will post 0.03 EPS for the current fiscal year.

Insider Activity

In other news, CFO Wajid Ali sold 2,222 shares of the company's stock in a transaction on Wednesday, June 4th. The stock was sold at an average price of $83.58, for a total value of $185,714.76. Following the sale, the chief financial officer directly owned 47,460 shares in the company, valued at $3,966,706.80. This represents a 4.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Yuen Wupen sold 4,716 shares of the company's stock in a transaction on Thursday, May 15th. The shares were sold at an average price of $76.87, for a total value of $362,518.92. Following the completion of the sale, the insider owned 82,957 shares in the company, valued at $6,376,904.59. This represents a 5.38% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 85,583 shares of company stock valued at $8,002,956 over the last three months. 0.19% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Lumentum

Large investors have recently added to or reduced their stakes in the business. CoreCap Advisors LLC grew its stake in shares of Lumentum by 2,235.3% in the fourth quarter. CoreCap Advisors LLC now owns 397 shares of the technology company's stock valued at $33,000 after buying an additional 380 shares in the last quarter. FNY Investment Advisers LLC bought a new stake in shares of Lumentum in the 2nd quarter worth approximately $38,000. Skandinaviska Enskilda Banken AB publ bought a new stake in Lumentum during the 1st quarter valued at $25,000. MAI Capital Management raised its stake in Lumentum by 27.0% during the 2nd quarter. MAI Capital Management now owns 452 shares of the technology company's stock valued at $43,000 after acquiring an additional 96 shares in the last quarter. Finally, Rakuten Securities Inc. increased its position in shares of Lumentum by 164.4% during the 1st quarter. Rakuten Securities Inc. now owns 476 shares of the technology company's stock valued at $30,000 after purchasing an additional 296 shares during the period. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

Lumentum Company Profile

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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