Lumentum (NASDAQ:LITE) Trading 6.2% Higher on Analyst Upgrade

Key Points

• Lumentum Holdings Inc. shares rose by 6.2% following an analyst upgrade from JPMorgan Chase & Co., which raised the price target from $145.00 to $185.00.
• The company reported earnings of $0.88 per share, exceeding analysts' expectations of $0.79, along with revenue of $480.70 million for the quarter.
• Insider activity includes CFO Wajid Ali selling 2,526 shares, reducing his ownership by 3.17%, while directors have collectively sold 41,687 shares over the last three months.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) shares were up 6.2% during trading on Thursday after JPMorgan Chase & Co. raised their price target on the stock from $145.00 to $185.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Lumentum traded as high as $165.52 and last traded at $166.25. Approximately 575,269 shares changed hands during trading, a decline of 79% from the average daily volume of 2,766,199 shares. The stock had previously closed at $156.57.

Several other brokerages also recently commented on LITE. Citigroup started coverage on shares of Lumentum in a report on Friday, August 29th. They set a "buy" rating and a $165.00 target price on the stock. Wall Street Zen raised shares of Lumentum from a "hold" rating to a "buy" rating in a research report on Friday, September 26th. Raymond James Financial upped their target price on Lumentum from $125.00 to $145.00 and gave the stock a "strong-buy" rating in a research note on Wednesday, August 13th. Stifel Nicolaus increased their target price on shares of Lumentum from $100.00 to $132.00 and gave the stock a "buy" rating in a report on Wednesday, August 13th. Finally, Barclays raised their target price on Lumentum from $135.00 to $165.00 and gave the stock an "overweight" rating in a research report on Tuesday, September 9th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $139.43.

Insider Activity

In related news, CFO Wajid Ali sold 2,526 shares of the business's stock in a transaction on Tuesday, August 26th. The stock was sold at an average price of $124.39, for a total transaction of $314,209.14. Following the completion of the transaction, the chief financial officer owned 77,087 shares in the company, valued at $9,588,851.93. The trade was a 3.17% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Julia Suzanne Johnson sold 1,250 shares of the company's stock in a transaction on Monday, August 18th. The stock was sold at an average price of $119.06, for a total value of $148,825.00. Following the sale, the director owned 22,037 shares of the company's stock, valued at $2,623,725.22. This trade represents a 5.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 41,687 shares of company stock valued at $4,759,552 in the last three months. 0.43% of the stock is currently owned by insiders.

Institutional Trading of Lumentum

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. FNY Investment Advisers LLC acquired a new stake in shares of Lumentum during the second quarter worth about $38,000. Skandinaviska Enskilda Banken AB publ acquired a new stake in shares of Lumentum during the first quarter valued at about $25,000. MAI Capital Management grew its stake in Lumentum by 27.0% in the second quarter. MAI Capital Management now owns 452 shares of the technology company's stock worth $43,000 after purchasing an additional 96 shares in the last quarter. Rakuten Securities Inc. increased its stake in Lumentum by 164.4% during the first quarter. Rakuten Securities Inc. now owns 476 shares of the technology company's stock valued at $30,000 after purchasing an additional 296 shares during the last quarter. Finally, Golden State Wealth Management LLC boosted its position in Lumentum by 103.2% during the 1st quarter. Golden State Wealth Management LLC now owns 512 shares of the technology company's stock valued at $32,000 after purchasing an additional 260 shares during the period. Hedge funds and other institutional investors own 94.05% of the company's stock.

Lumentum Stock Up 7.0%

The firm has a market cap of $11.88 billion, a price-to-earnings ratio of 726.98 and a beta of 1.42. The company has a debt-to-equity ratio of 2.26, a current ratio of 4.37 and a quick ratio of 3.18. The firm's fifty day moving average is $145.37 and its two-hundred day moving average is $101.81.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its quarterly earnings data on Tuesday, August 12th. The technology company reported $0.88 EPS for the quarter, beating analysts' consensus estimates of $0.79 by $0.09. Lumentum had a net margin of 1.57% and a negative return on equity of 3.02%. The company had revenue of $480.70 million during the quarter, compared to analyst estimates of $465.27 million. During the same period in the prior year, the firm earned $0.06 earnings per share. The business's quarterly revenue was up 55.9% on a year-over-year basis. Lumentum has set its Q1 2026 guidance at 0.950-1.100 EPS. On average, sell-side analysts expect that Lumentum Holdings Inc. will post 0.03 EPS for the current fiscal year.

About Lumentum

Lumentum Holdings Inc manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.