Lumentum (NASDAQ:LITE) Stock Price Up 9.2% - What's Next?

Key Points

• Lumentum shares jumped 9.2% to $779.89, with roughly 4.17 million shares traded. The stock has a $60.68 billion market capitalization and trades at a high price-to-earnings ratio of 144.42.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating from 21 analysts and an average price target of $1,012.67; several firms recently raised their targets to between $1,100 and $1,200.
• Lumentum exceeded quarterly earnings expectations, reporting $2.37 in EPS versus a $2.27 consensus estimate, while revenue rose 90.1% year over year. However, insiders sold 41,260 shares worth approximately $38.9 million over the past 90 days.

Shares of Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) were up 9.2% during trading on Monday . The company traded as high as $785.34 and last traded at $779.89. Approximately 4,170,718 shares changed hands during mid-day trading, a decline of 27% from the average session volume of 5,739,092 shares. The stock had previously closed at $713.94.

Analyst Ratings Changes

Several research firms have commented on LITE. Jefferies Financial Group reaffirmed a "buy" rating and issued a $1,200.00 price target on shares of Lumentum in a report on Wednesday, May 6th. Susquehanna lifted their target price on shares of Lumentum from $550.00 to $1,100.00 and gave the company a "positive" rating in a research report on Monday, April 20th. Weiss Ratings reiterated a "hold (c)" rating on shares of Lumentum in a research report on Friday, July 17th. Craig Hallum raised their target price on shares of Lumentum from $900.00 to $1,150.00 in a research note on Wednesday, May 6th. Finally, Raymond James Financial reissued an "outperform" rating and issued a $1,014.00 price objective on shares of Lumentum in a report on Wednesday, May 6th. Fourteen equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $1,012.67.

Lumentum Stock Up 9.2%

The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01. The firm's fifty day moving average is $821.07 and its 200-day moving average is $739.34. The stock has a market capitalization of $60.68 billion, a PE ratio of 144.42 and a beta of 1.50.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, topping the consensus estimate of $2.27 by $0.10. The business had revenue of $808.40 million for the quarter, compared to analyst estimates of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The business's revenue for the quarter was up 90.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, equities research analysts predict that Lumentum Holdings Inc. will post 6.42 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Ian Small sold 4,954 shares of Lumentum stock in a transaction on Thursday, May 21st. The shares were 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 in the company, valued at approximately $18,236,414.56. The trade was a 19.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Isaac Hosojiro Harris sold 4,000 shares of the company's stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $860.00, for a total transaction of $3,440,000.00. Following the completion of the sale, the director owned 8,400 shares in the company, valued at approximately $7,224,000. This trade represents a 32.26% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 41,260 shares of company stock valued at $38,859,220 over the last ninety days. Insiders own 0.43% of the company's stock.

Institutional Trading of Lumentum

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Hilltop National Bank increased its position in Lumentum by 26.8% in the second quarter. Hilltop National Bank now owns 71 shares of the technology company's stock worth $61,000 after buying an additional 15 shares during the period. Sachetta LLC lifted its holdings in 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 during the period. Versant Capital Management Inc grew its position in Lumentum by 39.5% in the 2nd 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 in the last quarter. Hilton Head Capital Partners LLC acquired a new position in Lumentum during the 1st quarter valued at about $25,000. Finally, Abel Hall LLC increased its stake in Lumentum by 5.5% during the 1st quarter. Abel Hall LLC now owns 693 shares of the technology company's stock valued at $487,000 after buying an additional 36 shares during the period. 94.05% of the stock is currently owned by institutional investors and hedge funds.

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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