Lumentum (NASDAQ:LITE) Trading Down 9.9% - Here's What Happened

Key Points

• Lumentum shares fell 9.9% to about $873.31 in heavy mid-day trading, with roughly 5.95 million shares changing hands.
• Despite the decline, analysts maintain a “Moderate Buy” consensus, with 13 Buy ratings, seven Holds, and an average price target of $1,044.67.
• The company recently beat quarterly expectations, reporting $3.23 in EPS on $1.01 billion in revenue, up 109.3% year over year; however, insiders sold 10,370 shares worth about $9.16 million during the last quarter.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) fell 9.9% during mid-day trading on Tuesday . The company traded as low as $863.11 and last traded at $873.31. 5,950,229 shares changed hands during mid-day trading, an increase of 4% from the average daily volume of 5,741,491 shares. The stock had previously closed at $968.90.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on LITE. Raymond James Financial restated an "outperform" rating and set a $1,036.00 target price on shares of Lumentum in a report on Wednesday, August 12th. Zacks Research cut shares of Lumentum from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Citic Securities increased their price objective on shares of Lumentum from $620.00 to $1,186.00 in a research note on Monday, May 11th. Mizuho raised their price objective on Lumentum from $1,100.00 to $1,140.00 and gave the company an "outperform" rating in a report on Wednesday, August 12th. Finally, UBS Group set a $820.00 target price on Lumentum in a research report on Wednesday, August 12th. Thirteen investment analysts have rated the stock with a Buy rating and seven have assigned 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 $1,044.67.

Lumentum Price Performance

The stock has a market capitalization of $67.94 billion, a P/E ratio of -10.62 and a beta of 1.50. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.68 and a quick ratio of 1.40. The company's 50-day simple moving average is $810.55 and its 200-day simple moving average is $779.66.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its quarterly earnings data on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, beating analysts' consensus estimates of $2.97 by $0.26. The company had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The company's quarterly revenue was up 109.3% on a year-over-year basis. During the same quarter last year, the firm posted $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, sell-side analysts expect that Lumentum Holdings Inc. will post 16.97 EPS for the current fiscal year.

Insider Transactions at Lumentum

In other news, Director Isaac Hosojiro Harris sold 4,000 shares of the firm's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $860.00, for a total value of $3,440,000.00. Following the completion of the sale, the director directly owned 8,400 shares of the company's stock, valued at $7,224,000. This trade represents a 32.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ian Small sold 4,954 shares of the firm's 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 of the company's stock, valued at approximately $18,236,414.56. The trade was a 19.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 10,370 shares of company stock valued at $9,156,532 in the last quarter. 0.43% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Hilltop National Bank boosted its position in Lumentum by 26.8% during the second quarter. Hilltop National Bank now owns 71 shares of the technology company's stock worth $61,000 after purchasing an additional 15 shares during the period. Sachetta LLC raised its position in shares of 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 purchasing an additional 19 shares during the period. Versant Capital Management Inc lifted its stake in shares of Lumentum by 39.5% during the 2nd quarter. Versant Capital Management Inc now owns 106 shares of the technology company's stock worth $91,000 after buying an additional 30 shares during the last quarter. Hilton Head Capital Partners LLC acquired a new stake in shares of Lumentum during the 1st quarter worth about $25,000. Finally, Abel Hall LLC boosted its holdings in shares of Lumentum by 5.5% during the 1st quarter. Abel Hall LLC now owns 693 shares of the technology company's stock worth $487,000 after buying an additional 36 shares during the period. 94.05% of the stock is owned by institutional investors and hedge funds.

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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