Lumentum (NASDAQ:LITE) Stock Price Up 9.8% on Analyst Upgrade

Key Points

• Shares jumped 9.8% after Mizuho raised its price target from $750 to $930 and kept an outperform rating; Lumentum traded as high as $901.30 and last at $896.02 on volume of about 6.95 million shares (≈15% above average).
• Analyst sentiment is broadly positive with multiple firms raising targets and ratings; MarketBeat shows a consensus of "Moderate Buy" and an average target of $592.88, highlighting dispersion among analysts' views.
• Fundamentals improved: Lumentum beat quarterly estimates with $1.67 EPS (vs. $1.41 est.) and $665.5M revenue (vs. $646.74M), up 65.5% year‑over‑year, and issued Q3 2026 guidance of $2.15–$2.35 EPS.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s stock price rose 9.8% on Wednesday after Mizuho raised their price target on the stock from $750.00 to $930.00. Mizuho currently has an outperform rating on the stock. Lumentum traded as high as $901.30 and last traded at $896.02. Approximately 6,954,475 shares were traded during trading, an increase of 15% from the average daily volume of 6,024,683 shares. The stock had previously closed at $815.75.

LITE has been the topic of several other research reports. Barclays increased their price target on Lumentum to $750.00 and gave the company an "equal weight" rating in a report on Tuesday, March 3rd. Morgan Stanley increased their price target on Lumentum to $595.00 and gave the company an "equal weight" rating in a report on Wednesday, March 18th. Weiss Ratings restated a "hold (c-)" rating on shares of Lumentum in a report on Monday, December 29th. Needham & Company LLC increased their price target on Lumentum to $850.00 and gave the company a "buy" rating in a report on Wednesday, March 4th. Finally, B. Riley Financial upgraded Lumentum from a "neutral" rating to a "buy" rating and increased their price target for the company from $147.00 to $526.00 in a report on Wednesday, February 4th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $592.88.

Insiders Place Their Bets

In other news, Director Penny Herscher sold 4,000 shares of Lumentum stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $597.29, for a total transaction of $2,389,160.00. Following the completion of the sale, the director directly owned 2,057 shares in the company, valued at approximately $1,228,625.53. This trade represents a 66.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Wajid Ali sold 5,302 shares of Lumentum stock in a transaction on Friday, February 27th. The stock was sold at an average price of $691.13, for a total value of $3,664,371.26. Following the sale, the chief financial officer owned 66,287 shares of the company's stock, valued at approximately $45,812,934.31. This trade represents a 7.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 65,775 shares of company stock valued at $38,851,343 in the last three months. 0.43% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lumentum

Several institutional investors have recently made changes to their positions in the company. Rockefeller Capital Management L.P. increased its stake in shares of Lumentum by 123.3% during the fourth quarter. Rockefeller Capital Management L.P. now owns 4,623 shares of the technology company's stock valued at $1,704,000 after buying an additional 2,553 shares during the period. Hsbc Holdings PLC increased its stake in shares of Lumentum by 6,239.0% during the fourth quarter. Hsbc Holdings PLC now owns 194,163 shares of the technology company's stock valued at $71,724,000 after buying an additional 191,100 shares during the period. OCONNOR A Distinct Business Unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new position in shares of Lumentum during the fourth quarter valued at $1,136,000. Caitong International Asset Management Co. Ltd increased its stake in shares of Lumentum by 46,666.7% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 8,418 shares of the technology company's stock valued at $3,103,000 after buying an additional 8,400 shares during the period. Finally, Reflection Asset Management purchased a new position in shares of Lumentum during the fourth quarter valued at $59,000. Hedge funds and other institutional investors own 94.05% of the company's stock.

Lumentum Stock Performance

The stock has a market cap of $63.98 billion, a PE ratio of 274.85 and a beta of 1.38. The company has a quick ratio of 0.45, a current ratio of 0.61 and a debt-to-equity ratio of 0.06. The firm has a 50 day moving average price of $640.61 and a 200 day moving average price of $401.71.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its quarterly earnings results on Tuesday, February 3rd. The technology company reported $1.67 EPS for the quarter, beating the consensus estimate of $1.41 by $0.26. The firm had revenue of $665.50 million for the quarter, compared to analyst estimates of $646.74 million. Lumentum had a return on equity of 17.27% and a net margin of 11.95%.The business's revenue for the quarter was up 65.5% on a year-over-year basis. During the same quarter last year, the firm posted $0.42 earnings per share. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. As a group, research analysts forecast that Lumentum Holdings Inc. will post 0.03 earnings per share for the current year.

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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