Lumentum (NASDAQ:LITE) Stock Price Up 2.1% - Still a Buy?

Key Points

• Lumentum shares rose 2.1% in Friday trading, with the stock last changing hands at $802.01 after reaching an intraday high of $806.56.
• Wall Street sentiment remains mostly constructive: the stock has 14 Buy ratings and 7 Hold ratings, with an average analyst target price of $1,021.95. Several firms recently raised their targets sharply, though Zacks Research downgraded the stock to Hold.
• The company posted a strong quarter, beating EPS estimates at $2.37 versus $2.27 expected, while revenue jumped 90.1% year over year to $808.4 million. Insider selling has been notable, with directors selling shares and insiders reducing holdings by $38.9 million over the last 90 days.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s stock price was up 2.1% during trading on Friday . The company traded as high as $806.56 and last traded at $802.01. 3,546,248 shares changed hands during mid-day trading, a decline of 40% from the average daily volume of 5,896,252 shares. The stock had previously closed at $785.77.

Wall Street Analyst Weigh In

Several analysts have issued reports on the stock. Citic Securities upped their price target on shares of Lumentum from $620.00 to $1,186.00 in a research report on Monday, May 11th. Zacks Research downgraded Lumentum from a "strong-buy" rating to a "hold" rating in a report on Monday. Susquehanna boosted their target price on Lumentum from $550.00 to $1,100.00 and gave the company a "positive" rating in a research note on Monday, April 20th. Northland Securities increased their target price on Lumentum from $1,000.00 to $1,200.00 and gave the company an "outperform" rating in a report on Wednesday, June 3rd. Finally, Raymond James Financial restated an "outperform" rating and set a $1,014.00 price target on shares of Lumentum in a research report on Wednesday, May 6th. Fourteen investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat, Lumentum currently has an average rating of "Moderate Buy" and an average target price of $1,021.95.

Lumentum Stock Performance

The firm has a market cap of $62.40 billion, a P/E ratio of 148.52 and a beta of 1.48. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01. The business's fifty day simple moving average is $883.44 and its 200-day simple moving average is $697.36.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.27 by $0.10. The firm had revenue of $808.40 million for the quarter, compared to analysts' expectations of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The company's revenue for the quarter was up 90.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, sell-side analysts expect that Lumentum Holdings Inc. will post 6.4 earnings per share for the current year.

Insider Activity at Lumentum

In other Lumentum news, Director Brian Lillie sold 11,951 shares of the company's stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $981.64, for a total transaction of $11,731,579.64. Following the completion of the transaction, the director owned 13,959 shares of the company's stock, valued at $13,702,712.76. This represents a 46.13% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ian Small sold 4,954 shares of the 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 of the company's stock, valued at approximately $18,236,414.56. This trade represents a 19.08% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 41,260 shares of company stock worth $38,859,220 over the last 90 days. 0.43% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in LITE. Hilltop National Bank lifted its position in shares of Lumentum by 26.8% in the 2nd quarter. Hilltop National Bank now owns 71 shares of the technology company's stock worth $61,000 after purchasing an additional 15 shares during the period. Sachetta LLC increased its position in shares of Lumentum by 118.8% during the first quarter. Sachetta LLC now owns 35 shares of the technology company's stock valued at $25,000 after buying an additional 19 shares during the period. Versant Capital Management Inc increased its position in shares of Lumentum by 39.5% during the second quarter. Versant Capital Management Inc now owns 106 shares of the technology company's stock valued at $91,000 after buying an additional 30 shares during the period. Hilton Head Capital Partners LLC bought a new position in Lumentum in the first quarter worth about $25,000. Finally, Abel Hall LLC raised its stake in Lumentum by 5.5% in the first quarter. Abel Hall LLC now owns 693 shares of the technology company's stock worth $487,000 after buying an additional 36 shares in the last quarter. 94.05% of the stock is owned by hedge funds and other institutional investors.

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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