Lumentum (NASDAQ:LITE) Trading Down 6% - Here's Why

Key Points

• Lumentum shares fell 6% on Friday, trading as low as $781.53 after closing at $833.64 the prior day. Volume was far below average, with about 472,745 shares changing hands versus a normal daily volume of 5.7 million.
• Despite the stock drop, analysts remain broadly positive on Lumentum. The company has 14 Buy ratings and 7 Hold ratings, with a consensus “Moderate Buy” and an average price target of $1,012.67.
• Lumentum recently beat earnings estimates, reporting $2.37 EPS versus $2.27 expected, while revenue rose 90.1% year over year to $808.4 million. The company also noted Q4 2026 guidance of $2.85 to $3.05 EPS.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s stock price traded down 6% on Friday . The stock traded as low as $781.53 and last traded at $783.8230. Approximately 472,745 shares traded hands during trading, a decline of 92% from the average daily volume of 5,745,637 shares. The stock had previously closed at $833.64.

Analyst Ratings Changes

A number of research firms have recently commented on LITE. Jefferies Financial Group restated a "buy" rating and issued a $1,200.00 price target on shares of Lumentum in a report on Wednesday, May 6th. Craig Hallum lifted their price objective on shares of Lumentum from $900.00 to $1,150.00 in a report on Wednesday, May 6th. Raymond James Financial reissued an "outperform" rating and issued a $1,014.00 price objective on shares of Lumentum in a research report on Wednesday, May 6th. Citigroup reaffirmed a "buy" rating on shares of Lumentum in a research report on Thursday, July 16th. Finally, Susquehanna lifted their price target on shares of Lumentum from $550.00 to $1,100.00 and gave the company a "positive" rating in a research note on Monday, April 20th. Fourteen equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, Lumentum currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,012.67.

Lumentum Price Performance

The stock has a 50-day moving average price of $848.84 and a two-hundred day moving average price of $725.62. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01. The stock has a market cap of $60.35 billion, a price-to-earnings ratio of 144.96 and a beta of 1.48.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its earnings results 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 company had revenue of $808.40 million for the quarter, compared to analyst estimates of $810.21 million. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The firm's quarterly revenue was up 90.1% compared to the same quarter last year. During the same period in the prior year, the company posted $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, equities research analysts forecast that Lumentum Holdings Inc. will post 6.42 EPS for the current year.

Insider Transactions at Lumentum

In related news, Director Ian Small sold 4,954 shares of Lumentum stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $868.07, for a total value of $4,300,418.78. Following the completion of the sale, the director directly owned 21,008 shares in the company, valued at $18,236,414.56. This trade represents a 19.08% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Yuen Wupen sold 3,210 shares of the company's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $3,062,179.50. Following the transaction, the insider owned 81,488 shares in the company, valued at $77,735,477.60. The trade was a 3.79% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 41,260 shares of company stock worth $38,859,220 over the last ninety days. 0.43% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Lumentum

A number of institutional investors and hedge funds have recently modified their holdings of the company. Hilton Head Capital Partners LLC acquired a new stake in Lumentum during the 1st quarter valued at approximately $25,000. Sachetta LLC raised its stake 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 buying an additional 19 shares during the last quarter. Wiser Advisor Group LLC raised its stake in shares of Lumentum by 6,000.0% during the 1st quarter. Wiser Advisor Group LLC now owns 61 shares of the technology company's stock valued at $43,000 after buying an additional 60 shares during the last quarter. Harbor Investment Advisory LLC lifted its holdings in shares of Lumentum by 1,140.0% in the 2nd quarter. Harbor Investment Advisory LLC now owns 62 shares of the technology company's stock valued at $53,000 after buying an additional 57 shares during the period. Finally, SJS Investment Consulting Inc. lifted its holdings in shares of Lumentum by 687.5% in the 1st quarter. SJS Investment Consulting Inc. now owns 63 shares of the technology company's stock valued at $44,000 after buying an additional 55 shares during the period. Institutional investors and hedge funds 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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