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

Key Points

• Stifel Nicolaus raised its price target on Lumentum to $1,100 (from $800) and maintained a buy rating, implying about a 12.7% upside from the stock's current price.
• Analyst sentiment is tilted positive with a consensus of "Moderate Buy" (12 Buys, 7 Holds) and an average target of $812.71, though individual targets vary widely.
• Lumentum recently reported an EPS beat of $1.67 vs. $1.41 and revenue up 65.5% year‑over‑year to $665.5M; the shares trade near $976 with a market cap of ~$69.7B, but insiders sold about $38.9M of stock last quarter.

Lumentum (NASDAQ:LITE - Get Free Report) had its price objective hoisted by equities researchers at Stifel Nicolaus from $800.00 to $1,100.00 in a report issued on Tuesday,MarketScreener reports. The firm currently has a "buy" rating on the technology company's stock. Stifel Nicolaus' target price points to a potential upside of 12.68% from the stock's current price.

Several other equities analysts have also recently weighed in on the company. TD Cowen raised their price objective on Lumentum from $675.00 to $875.00 and gave the company a "hold" rating in a report on Friday, April 10th. Weiss Ratings reiterated a "hold (c)" rating on shares of Lumentum in a research report on Tuesday, April 21st. UBS Group boosted their target price on shares of Lumentum from $215.00 to $455.00 and gave the company a "neutral" rating in a research report on Wednesday, February 4th. Northland Securities set a $1,000.00 price target on shares of Lumentum in a report on Monday, April 20th. Finally, Citigroup increased their price objective on Lumentum from $800.00 to $1,100.00 and gave the company a "buy" rating in a report on Tuesday, April 21st. Twelve investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $812.71.

Lumentum Price Performance

Shares of LITE stock opened at $976.18 on Tuesday. The company has a quick ratio of 0.45, a current ratio of 0.61 and a debt-to-equity ratio of 0.06. Lumentum has a 12 month low of $60.38 and a 12 month high of $1,004.94. The firm has a market cap of $69.70 billion, a price-to-earnings ratio of 299.44 and a beta of 1.53. The stock has a 50-day moving average price of $760.12 and a 200 day moving average price of $486.41.

Lumentum (NASDAQ:LITE - Get Free Report) last issued its quarterly earnings results on Tuesday, February 3rd. The technology company reported $1.67 EPS for the quarter, topping the consensus estimate of $1.41 by $0.26. Lumentum had a net margin of 11.95% and a return on equity of 17.27%. The company had revenue of $665.50 million during the quarter, compared to analysts' expectations of $646.74 million. During the same quarter in the previous year, the company earned $0.42 EPS. Lumentum's revenue was up 65.5% on a year-over-year basis. Research analysts expect that Lumentum will post 5.87 EPS for the current year.

Insider Activity

In other news, CFO Wajid Ali sold 5,302 shares of the company's stock in a transaction on Friday, February 27th. The shares were sold at an average price of $691.13, for a total value of $3,664,371.26. Following the completion of the sale, the chief financial officer owned 66,287 shares in the company, valued at $45,812,934.31. This represents a 7.41% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Penny Herscher sold 4,849 shares of the stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $535.48, for a total transaction of $2,596,542.52. Following the completion of the sale, the director owned 6,057 shares of the company's stock, valued at approximately $3,243,402.36. This represents a 44.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 65,775 shares of company stock valued at $38,851,343 over the last quarter. 0.43% of the stock is owned by insiders.

Hedge Funds Weigh In On Lumentum

Several hedge funds have recently modified their holdings of the company. Sigma Planning Corp bought a new position in shares of Lumentum in the first quarter valued at approximately $378,000. Checchi Capital Advisers LLC lifted its holdings in Lumentum by 5.1% during the first quarter. Checchi Capital Advisers LLC now owns 790 shares of the technology company's stock worth $555,000 after acquiring an additional 38 shares during the period. Empirical Financial Services LLC d.b.a. Empirical Wealth Management bought a new stake in Lumentum during the first quarter worth $271,000. Archer Investment Corp boosted its position in Lumentum by 92,900.0% in the first quarter. Archer Investment Corp now owns 930 shares of the technology company's stock worth $654,000 after purchasing an additional 929 shares during the last quarter. Finally, State of Michigan Retirement System grew its stake in Lumentum by 11.8% in the 1st quarter. State of Michigan Retirement System now owns 18,700 shares of the technology company's stock valued at $13,142,000 after purchasing an additional 1,972 shares during the period. Institutional investors own 94.05% of the company's stock.

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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