Lumentum (NASDAQ:LITE) Trading Down 2.9% - Here's Why

Key Points

• Lumentum shares fell 2.9% intraday to a last trade of $871.18, with 6.46 million shares changing hands—about 7% above average session volume.
• Strong quarterly beat: Lumentum reported EPS of $1.67 vs. $1.41 expected and revenue of $665.5M (up 65.5% YoY), and guided Q3 2026 EPS to $2.150–$2.350.
• Analysts have raised price targets and the consensus rating is a Moderate Buy, but the average price target of $629.44 is well below the current share price; insiders sold roughly 65,775 shares (~$38.9M) in the past 90 days.

Shares of Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) fell 2.9% during trading on Monday . The company traded as low as $841.05 and last traded at $871.18. 6,461,482 shares were traded during mid-day trading, an increase of 7% from the average session volume of 6,056,921 shares. The stock had previously closed at $897.30.

Analyst Ratings Changes

A number of brokerages recently issued reports on LITE. TD Cowen raised their price objective on shares of Lumentum from $675.00 to $875.00 and gave the company a "hold" rating in a report on Friday. Citigroup raised their price objective on shares of Lumentum to $560.00 and gave the company a "buy" rating in a report on Thursday, February 5th. Susquehanna raised their price objective on shares of Lumentum to $550.00 and gave the company a "positive" rating in a report on Wednesday, February 4th. Morgan Stanley raised their price objective on shares of Lumentum to $595.00 and gave the company an "equal weight" rating in a report on Wednesday, March 18th. Finally, Stifel Nicolaus raised their price objective on shares of Lumentum to $800.00 and gave the company a "buy" rating in a report on Monday, March 2nd. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $629.44.

Lumentum Trading Down 2.9%

The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.45 and a current ratio of 0.61. The firm's fifty day simple moving average is $671.18 and its 200-day simple moving average is $417.25. The stock has a market cap of $62.20 billion, a P/E ratio of 267.23 and a beta of 1.38.

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

Insider Activity

In other Lumentum news, insider Vincent Retort sold 45,026 shares of the firm's stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $591.32, for a total transaction of $26,624,774.32. Following the completion of the transaction, the insider owned 102,455 shares in the company, valued at approximately $60,583,690.60. This trade represents a 30.53% decrease in their position. 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 the firm's stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $691.13, for a total transaction of $3,664,371.26. Following the transaction, the chief financial officer owned 66,287 shares of the company's stock, valued at approximately $45,812,934.31. The trade was a 7.41% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 65,775 shares of company stock worth $38,851,343 in the last 90 days. 0.43% of the stock is owned by company insiders.

Institutional Trading of Lumentum

Several large investors have recently modified their holdings of LITE. Advisors Asset Management Inc. grew its position in shares of Lumentum by 36.8% during the 1st quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company's stock worth $59,000 after buying an additional 254 shares during the period. NewEdge Advisors LLC grew its position in shares of Lumentum by 109.9% during the 1st quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company's stock worth $747,000 after buying an additional 6,275 shares during the period. Empowered Funds LLC grew its position in shares of Lumentum by 9.1% during the 1st quarter. Empowered Funds LLC now owns 8,139 shares of the technology company's stock worth $507,000 after buying an additional 680 shares during the period. Hsbc Holdings PLC acquired a new stake in shares of Lumentum during the 2nd quarter worth approximately $298,000. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in shares of Lumentum during the 2nd quarter worth approximately $1,712,000. Institutional investors and hedge funds own 94.05% of the company's stock.

Lumentum Company Profile

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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