Lumentum (NASDAQ:LITE) Stock Price Up 3.7% - Here's Why

Key Points

• Lumentum shares rose 3.7% on Monday, reaching an intraday high of $914 before closing at $895.40, with trading volume below its recent average.
• Analyst sentiment remains bullish, as several firms raised price targets, including Rosenblatt to $1,300 and Loop Capital to $1,400; the stock carries a consensus “Moderate Buy” rating with a target price of $1,021.95.
• Recent earnings were strong, with Lumentum reporting $2.37 EPS versus the $2.27 estimate and revenue up 90.1% year over year, while issuing Q4 2026 guidance of $2.85 to $3.05 EPS.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s stock price shot up 3.7% during trading on Monday . The stock traded as high as $914.00 and last traded at $895.40. 5,068,998 shares changed hands during trading, a decline of 16% from the average session volume of 6,020,800 shares. The stock had previously closed at $863.66.

Wall Street Analyst Weigh In

LITE has been the subject of several recent research reports. Rosenblatt Securities lifted their target price on shares of Lumentum from $900.00 to $1,300.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. Needham & Company LLC lifted their price objective on Lumentum from $880.00 to $1,040.00 and gave the company a "buy" rating in a research note on Tuesday, April 21st. Loop Capital boosted their target price on Lumentum from $900.00 to $1,400.00 and gave the stock a "buy" rating in a report on Tuesday, May 5th. TD Cowen raised their price target on Lumentum from $875.00 to $995.00 and gave the company a "hold" rating in a report on Wednesday, May 6th. Finally, Citigroup lifted their price target on Lumentum from $800.00 to $1,100.00 and gave the stock a "buy" rating in a research report on Tuesday, April 21st. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $1,021.95.

Lumentum Price Performance

The firm has a fifty day moving average of $880.29 and a 200 day moving average of $610.37. 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 company has a market capitalization of $69.66 billion, a P/E ratio of 165.82 and a beta of 1.47.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, topping analysts' consensus estimates of $2.27 by $0.10. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The firm had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.21 million. During the same period in the previous year, the business posted $0.57 earnings per share. The business's revenue for the quarter 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 research analysts anticipate that Lumentum Holdings Inc. will post 6.49 EPS for the current year.

Insiders Place Their Bets

In other Lumentum news, insider Vincent Retort sold 3,183 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 $3,036,422.85. Following the completion of the sale, the insider directly owned 89,563 shares in the company, valued at $85,438,623.85. The trade was a 3.43% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 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 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 transaction of $4,300,418.78. Following the completion of the transaction, the director owned 21,008 shares in the company, valued at $18,236,414.56. This trade represents a 19.08% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 41,260 shares of company stock valued at $38,859,220. 0.43% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Lumentum

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LITE. Sachetta LLC increased its stake in shares of Lumentum by 118.8% in the first quarter. Sachetta LLC now owns 35 shares of the technology company's stock worth $25,000 after purchasing an additional 19 shares in the last quarter. Hilton Head Capital Partners LLC purchased a new position in shares of Lumentum during the 1st quarter valued at $25,000. Abel Hall LLC boosted its holdings in Lumentum by 5.5% in the 1st quarter. Abel Hall LLC now owns 693 shares of the technology company's stock worth $487,000 after buying an additional 36 shares during the period. Checchi Capital Advisers LLC increased its stake in Lumentum by 5.1% in the 1st quarter. Checchi Capital Advisers LLC now owns 790 shares of the technology company's stock worth $555,000 after buying an additional 38 shares in the last quarter. Finally, 180 Wealth Advisors LLC raised its holdings in Lumentum by 2.9% during the first quarter. 180 Wealth Advisors LLC now owns 1,553 shares of the technology company's stock valued at $1,092,000 after acquiring an additional 44 shares during the period. Institutional investors own 94.05% of the company's 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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