Lumentum (NASDAQ:LITE) Trading Down 5.4% - Here's What Happened

Shares of Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) were down 5.4% on Friday . The company traded as low as $72.34 and last traded at $71.37. Approximately 57,098 shares traded hands during trading, a decline of 97% from the average daily volume of 1,987,722 shares. The stock had previously closed at $75.41.

Analyst Ratings Changes

LITE has been the topic of a number of recent analyst reports. Jefferies Financial Group initiated coverage on shares of Lumentum in a research report on Friday, February 21st. They issued a "buy" rating on the stock. Northland Securities set a $80.00 price target on Lumentum in a report on Wednesday, May 7th. Stifel Nicolaus increased their price objective on Lumentum from $95.00 to $105.00 and gave the company a "buy" rating in a report on Friday, February 7th. JPMorgan Chase & Co. cut their target price on Lumentum from $105.00 to $73.00 and set an "overweight" rating on the stock in a research report on Thursday, April 17th. Finally, Needham & Company LLC decreased their target price on Lumentum from $110.00 to $100.00 and set a "buy" rating for the company in a research note on Wednesday, May 7th. One research analyst has rated the stock with a sell rating, three have given a hold rating, ten have assigned a buy rating and two have assigned a strong buy rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $82.20.

Lumentum Price Performance

The company has a quick ratio of 3.60, a current ratio of 4.76 and a debt-to-equity ratio of 2.94. The firm has a market capitalization of $5.39 billion, a price-to-earnings ratio of -10.10 and a beta of 1.18. The company has a fifty day moving average price of $63.67 and a two-hundred day moving average price of $75.03.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings results on Tuesday, May 6th. The technology company reported $0.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.50 by $0.07. The firm had revenue of $425.20 million for the quarter, compared to analyst estimates of $418.18 million. Lumentum had a negative return on equity of 7.25% and a negative net margin of 36.98%. The business's revenue was up 16.0% on a year-over-year basis. During the same quarter last year, the company posted $0.09 earnings per share. On average, equities research analysts expect that Lumentum Holdings Inc. will post 0.03 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, SVP Jae Kim sold 4,577 shares of the company's stock in a transaction on Friday, May 16th. The stock was sold at an average price of $77.98, for a total transaction of $356,914.46. Following the transaction, the senior vice president now owns 31,534 shares of the company's stock, valued at $2,459,021.32. This represents a 12.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Yuen Wupen sold 4,716 shares of the firm's stock in a transaction on Thursday, May 15th. The shares were sold at an average price of $76.87, for a total value of $362,518.92. Following the completion of the sale, the insider now directly owns 82,957 shares of the company's stock, valued at approximately $6,376,904.59. This trade represents a 5.38% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 14,298 shares of company stock worth $1,081,764. 0.19% of the stock is owned by insiders.

Hedge Funds Weigh In On Lumentum

A number of institutional investors and hedge funds have recently made changes to their positions in LITE. Jones Financial Companies Lllp lifted its stake in shares of Lumentum by 54.2% in the fourth quarter. Jones Financial Companies Lllp now owns 370 shares of the technology company's stock valued at $31,000 after purchasing an additional 130 shares during the period. CoreCap Advisors LLC lifted its position in shares of Lumentum by 2,235.3% during the 4th quarter. CoreCap Advisors LLC now owns 397 shares of the technology company's stock valued at $33,000 after acquiring an additional 380 shares during the period. Skandinaviska Enskilda Banken AB publ acquired a new stake in shares of Lumentum during the 1st quarter valued at approximately $25,000. Rakuten Securities Inc. boosted its stake in shares of Lumentum by 164.4% during the 1st quarter. Rakuten Securities Inc. now owns 476 shares of the technology company's stock worth $30,000 after acquiring an additional 296 shares in the last quarter. Finally, Golden State Wealth Management LLC grew its holdings in shares of Lumentum by 103.2% in the 1st quarter. Golden State Wealth Management LLC now owns 512 shares of the technology company's stock worth $32,000 after acquiring an additional 260 shares during the period. 94.05% of the stock is owned by institutional investors and hedge funds.

Lumentum Company Profile

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.