Lumentum (NASDAQ:LITE) Trading Up 1% - Still a Buy?

Key Points

• Strong quarter: Lumentum beat expectations with $1.67 EPS and $665.5M revenue (up 65.5% YoY) and set Q3 FY2026 guidance of roughly $2.15–$2.35 EPS.
• Analysts maintain a Moderate Buy consensus with an average price target of $550.38, though recent upgrades have pushed individual targets as high as $800 and as low as $520.
• Insiders sold about 65,775 shares (~$38.9M) in the last quarter while institutional ownership stands near 94%, and the stock was trading up ~1% on Friday with volume ~30% below average.

Shares of Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) were up 1% on Friday . The stock traded as high as $639.56 and last traded at $622.50. Approximately 3,825,536 shares changed hands during trading, a decline of 30% from the average daily volume of 5,428,761 shares. The stock had previously closed at $616.09.

Analyst Upgrades and Downgrades

LITE has been the subject of a number of recent research reports. Stifel Nicolaus lifted their price objective on shares of Lumentum to $800.00 and gave the company a "buy" rating in a research note on Monday, March 2nd. Morgan Stanley lifted their price objective on Lumentum to $520.00 and gave the company an "equal weight" rating in a research note on Monday, February 23rd. Weiss Ratings restated a "hold (c-)" rating on shares of Lumentum in a research report on Monday, December 29th. Bank of America raised their price target on Lumentum to $520.00 and gave the company a "neutral" rating in a report on Wednesday, February 4th. Finally, Susquehanna lifted their price target on Lumentum to $550.00 and gave the company a "positive" rating in a research report on Wednesday, February 4th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $550.38.

Lumentum Stock Performance

The company has a 50 day simple moving average of $505.29 and a 200-day simple moving average of $325.51. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.61 and a quick ratio of 0.45. The stock has a market cap of $44.45 billion, a P/E ratio of 190.95 and a beta of 1.38.

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

Insider Buying and Selling at Lumentum

In other news, insider Vincent Retort sold 3,441 shares of Lumentum stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $545.78, for a total value of $1,878,028.98. Following the transaction, the insider owned 95,975 shares in the company, valued at approximately $52,381,235.50. The trade was a 3.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Penny Herscher sold 4,000 shares of the stock in a transaction dated Thursday, February 12th. The shares were sold at an average price of $597.29, for a total value of $2,389,160.00. Following the sale, the director owned 2,057 shares of the company's stock, valued at $1,228,625.53. This represents a 66.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 65,775 shares of company stock valued at $38,851,343. Insiders own 0.43% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in LITE. Truvestments Capital LLC grew its holdings in Lumentum by 300.0% in the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company's stock worth $28,000 after acquiring an additional 57 shares during the last quarter. V Square Quantitative Management LLC purchased a new stake in shares of Lumentum during the fourth quarter worth about $28,000. Triumph Capital Management bought a new stake in shares of Lumentum in the fourth quarter worth about $30,000. Harbour Investments Inc. increased its holdings in Lumentum by 675.0% during the 4th quarter. Harbour Investments Inc. now owns 93 shares of the technology company's stock valued at $34,000 after purchasing an additional 81 shares during the period. Finally, Chesapeake Asset Management LLC bought a new position in Lumentum during the 4th quarter valued at approximately $37,000. 94.05% of the stock is owned by hedge funds and other 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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