Lumentum (NASDAQ:LITE) Trading 8.2% Higher - Here's What Happened

Key Points

• Shares of Lumentum jumped 8.2% midday, trading as high as $903 and last at $891.22 on roughly 6.0 million shares, near its average daily volume.
• The company posted an earnings beat with $1.67 EPS vs. $1.41 expected and $665.5M revenue (up 65.5% YoY), and guided Q3 2026 EPS to $2.15–$2.35.
• Several firms have raised targets—most notably JPMorgan to $950 with an overweight rating—while MarketBeat shows a consensus Moderate Buy and a $629.44 price target.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) shares rose 8.2% during mid-day trading on Thursday . The company traded as high as $903.00 and last traded at $891.22. Approximately 6,015,840 shares changed hands during mid-day trading, a decline of 1% from the average daily volume of 6,054,270 shares. The stock had previously closed at $824.01.

Analyst Upgrades and Downgrades

LITE has been the topic of a number of research reports. TD Cowen raised their price objective on shares of Lumentum from $675.00 to $875.00 and gave the stock a "hold" rating in a report on Friday, April 10th. Morgan Stanley raised their price objective on shares of Lumentum to $595.00 and gave the stock an "equal weight" rating in a report on Wednesday, March 18th. Bank of America raised their target price on shares of Lumentum to $520.00 and gave the stock a "neutral" rating in a research note on Wednesday, February 4th. JPMorgan Chase & Co. raised their target price on shares of Lumentum to $950.00 and gave the stock an "overweight" rating in a research note on Thursday, April 9th. Finally, Zacks Research cut shares of Lumentum from a "strong-buy" rating to a "hold" rating in a research note on Monday. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $629.44.

Lumentum Stock Performance

The company has a market cap of $63.63 billion, a P/E ratio of 273.38 and a beta of 1.38. The business's 50 day simple moving average is $695.67 and its 200 day simple moving average is $429.91. The company has a current ratio of 0.61, a quick ratio of 0.45 and a debt-to-equity ratio of 0.06.

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

Insider Activity at Lumentum

In other news, Director Penny Herscher sold 4,000 shares of Lumentum stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $597.29, for a total transaction of $2,389,160.00. Following the sale, the director owned 2,057 shares in the company, valued at $1,228,625.53. This trade represents a 66.04% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Vincent Retort sold 3,441 shares of the business's stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $545.78, for a total transaction of $1,878,028.98. Following the completion of the sale, the insider owned 95,975 shares in the company, valued at $52,381,235.50. This represents a 3.46% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 65,775 shares of company stock worth $38,851,343. 0.43% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. boosted its stake in Lumentum by 0.6% during the third quarter. Vanguard Group Inc. now owns 7,485,282 shares of the technology company's stock worth $1,217,930,000 after buying an additional 41,975 shares during the period. Arrowstreet Capital Limited Partnership boosted its stake in Lumentum by 18.7% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company's stock worth $683,661,000 after buying an additional 291,591 shares during the period. Geode Capital Management LLC boosted its stake in Lumentum by 9.6% during the fourth quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company's stock worth $521,563,000 after buying an additional 123,265 shares during the period. Situational Awareness LP boosted its stake in Lumentum by 210.9% during the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company's stock worth $478,577,000 after buying an additional 880,800 shares during the period. Finally, Norges Bank purchased a new position in Lumentum during the fourth quarter worth $474,495,000. 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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