Lumentum (NASDAQ:LITE) Trading Down 6.7% - Here's Why

Key Points

• Lumentum shares fell 6.7% to $711.96, with trading volume 35% below the average session level. The stock remains below its 50-day moving average of $844.69 but above its 200-day average of $728.47.
• Analyst sentiment remains broadly positive, with 14 Buy ratings and seven Holds producing a “Moderate Buy” consensus and an average price target of $1,012.67. However, TD Cowen recently reduced its target to $800 and maintained a Hold rating.
• Lumentum’s latest quarterly results exceeded earnings expectations, reporting $2.37 in EPS versus $2.27 expected, while revenue grew 90.1% year over year to $808.4 million. Insiders have sold $38.9 million of stock over the past three months, while institutional investors own 94.05% of shares.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s share price was down 6.7% during trading on Monday . The stock traded as low as $697.88 and last traded at $711.96. 3,719,598 shares traded hands during mid-day trading, a decline of 35% from the average session volume of 5,752,654 shares. The stock had previously closed at $762.99.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on LITE shares. Jefferies Financial Group restated a "buy" rating and set a $1,200.00 price target on shares of Lumentum in a report on Wednesday, May 6th. TD Cowen cut their price objective on shares of Lumentum from $995.00 to $800.00 and set a "hold" rating on the stock in a research report on Monday, July 13th. B. Riley Financial restated a "buy" rating on shares of Lumentum in a research note on Friday, May 1st. Stifel Nicolaus lifted their target price 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. Finally, Northland Securities raised their price target on shares of Lumentum from $1,000.00 to $1,200.00 and gave the company an "outperform" rating in a research report on Wednesday, June 3rd. Fourteen investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $1,012.67.

Lumentum Price Performance

The firm has a 50-day moving average of $844.69 and a 200 day moving average of $728.47. The company has a market capitalization of $55.39 billion, a PE ratio of 131.84 and a beta of 1.48. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97.

Lumentum (NASDAQ:LITE - Get Free Report) last issued its earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, topping analysts' consensus estimates of $2.27 by $0.10. The business had revenue of $808.40 million during 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%.Lumentum's revenue was up 90.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, research analysts anticipate that Lumentum Holdings Inc. will post 6.42 earnings per share for the current fiscal year.

Insider Transactions at Lumentum

In other news, CFO Wajid Ali sold 2,487 shares of the business'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 $2,372,473.65. Following the completion of the transaction, the chief financial officer directly owned 60,951 shares of the company's stock, valued at $58,144,206.45. The trade was a 3.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 1,416 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $1,000.08, for a total transaction of $1,416,113.28. Following the transaction, the director owned 6,984 shares in the company, valued at approximately $6,984,558.72. This trade represents a 16.86% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 41,260 shares of company stock valued at $38,859,220. Company insiders own 0.43% of the company's stock.

Hedge Funds Weigh In On Lumentum

Several hedge funds and other institutional investors have recently modified their holdings of the company. Hilltop National Bank grew its holdings in shares of Lumentum by 26.8% in the second quarter. Hilltop National Bank now owns 71 shares of the technology company's stock worth $61,000 after acquiring an additional 15 shares during the period. Sachetta LLC lifted its holdings in Lumentum by 118.8% in the first quarter. Sachetta LLC now owns 35 shares of the technology company's stock valued at $25,000 after acquiring an additional 19 shares during the period. Versant Capital Management Inc lifted its holdings in Lumentum by 39.5% in the second quarter. Versant Capital Management Inc now owns 106 shares of the technology company's stock valued at $91,000 after acquiring an additional 30 shares during the period. Hilton Head Capital Partners LLC purchased a new position in Lumentum in the first quarter worth about $25,000. Finally, Abel Hall LLC boosted its position in Lumentum by 5.5% in the first quarter. Abel Hall LLC now owns 693 shares of the technology company's stock worth $487,000 after purchasing an additional 36 shares during the last quarter. 94.05% of the stock is owned by 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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