Lumentum (NASDAQ:LITE) Trading Down 2.3% - What's Next?

Key Points

• Lumentum shares fell 2.3% on Thursday, trading as low as $831.17, even as volume jumped to about 8.28 million shares, well above its average session volume.
• Analysts remain broadly positive: several firms recently raised price targets, and the stock now carries an average “Moderate Buy” rating with a consensus price target of $1,021.95.
• The company’s latest quarter was strong, with EPS of $2.37 topping estimates and revenue up 90.1% year over year, while Lumentum also issued Q4 2026 guidance of $2.85 to $3.05 EPS.

Shares of Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) fell 2.3% on Thursday . The company traded as low as $831.17 and last traded at $850.00. Approximately 8,277,507 shares were traded during trading, an increase of 38% from the average session volume of 6,014,757 shares. The stock had previously closed at $869.98.

Analyst Upgrades and Downgrades

LITE has been the topic of several analyst reports. Morgan Stanley lifted their target price on Lumentum from $710.00 to $900.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 6th. JPMorgan Chase & Co. lifted their price objective on shares of Lumentum from $950.00 to $1,130.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. UBS Group increased their target price on shares of Lumentum from $455.00 to $960.00 and gave the company a "neutral" rating in a research report on Wednesday, May 6th. Northland Securities raised their target price on shares of Lumentum from $1,000.00 to $1,200.00 and gave the company an "outperform" rating in a research note on Wednesday, June 3rd. Finally, Stifel Nicolaus lifted their price target on shares of Lumentum from $800.00 to $1,100.00 and gave the stock a "buy" rating in a report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, Lumentum currently has an average rating of "Moderate Buy" and a consensus price target of $1,021.95.

Lumentum Price Performance

The firm has a market cap of $66.13 billion, a PE ratio of 157.41 and a beta of 1.47. 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 stock has a 50 day moving average price of $903.17 and a two-hundred day moving average price of $644.68.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.27 by $0.10. The firm had revenue of $808.40 million for the quarter, compared to the consensus estimate of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The company's revenue for the quarter was up 90.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, equities analysts expect that Lumentum Holdings Inc. will post 6.4 earnings per share 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 sale, the insider owned 89,563 shares in the company, valued at approximately $85,438,623.85. The trade was a 3.43% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 Isaac Hosojiro Harris sold 4,000 shares of the stock in a transaction on Friday, May 29th. The stock was 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 $7,224,000. The trade was 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. In the last quarter, insiders have sold 41,260 shares of company stock valued at $38,859,220. Corporate insiders own 0.43% of the company's stock.

Hedge Funds Weigh In On Lumentum

A number of institutional investors have recently modified their holdings of the stock. Hilton Head Capital Partners LLC acquired a new stake in Lumentum during the first quarter worth about $25,000. Sachetta LLC increased its holdings in shares of Lumentum by 118.8% during the 1st quarter. Sachetta LLC now owns 35 shares of the technology company's stock valued at $25,000 after purchasing an additional 19 shares in the last quarter. Wiser Advisor Group LLC lifted its stake in shares of Lumentum by 6,000.0% in the 1st quarter. Wiser Advisor Group LLC now owns 61 shares of the technology company's stock valued at $43,000 after purchasing an additional 60 shares during the period. SJS Investment Consulting Inc. boosted its holdings in Lumentum by 687.5% during the first quarter. SJS Investment Consulting Inc. now owns 63 shares of the technology company's stock worth $44,000 after buying an additional 55 shares in the last quarter. Finally, Truvestments Capital LLC grew its position in Lumentum by 300.0% during the fourth quarter. Truvestments Capital LLC now owns 76 shares of the technology company's stock valued at $28,000 after buying an additional 57 shares during the period. Hedge funds and other institutional investors own 94.05% of the company's stock.

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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