Lumentum (NASDAQ:LITE) Trading Up 11.1% - Here's What Happened

Key Points

• Lumentum shares jumped 11.1% in mid-day trading, reaching an intraday high of $804.90 after closing at $707.10 the prior day.
• Recent analyst activity has been mostly bullish, with several firms raising price targets; MarketBeat says Lumentum now carries a Moderate Buy rating and an average target of $1,021.95.
• The company’s latest earnings beat expectations, with EPS of $2.37 topping estimates and revenue up 90.1% year over year, even as insiders sold shares and institutional ownership remained high at 94.05%.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s share price rose 11.1% during mid-day trading on Thursday . The company traded as high as $804.90 and last traded at $785.77. 5,453,136 shares changed hands during trading, a decline of 8% from the average daily volume of 5,910,556 shares. The stock had previously closed at $707.10.

Analysts Set New Price Targets

LITE has been the subject of a number of research reports. 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. Weiss Ratings reiterated a "hold (c)" rating on shares of Lumentum in a report on Tuesday, April 21st. Stifel Nicolaus increased their price objective on shares of Lumentum from $800.00 to $1,100.00 and gave the stock a "buy" rating in a research report on Tuesday, May 5th. B. Riley Financial reissued a "buy" rating on shares of Lumentum in a research report on Friday, May 1st. Finally, Morgan Stanley raised their target price on Lumentum from $710.00 to $900.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 6th. Fourteen research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $1,021.95.

Lumentum Trading Up 11.1%

The firm has a market cap of $61.13 billion, a price-to-earnings ratio of 145.51 and a beta of 1.48. The firm's 50-day moving average is $883.55 and its 200-day moving average is $694.44. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, topping the consensus estimate of $2.27 by $0.10. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The firm had revenue of $808.40 million for the quarter, compared to the consensus estimate of $810.21 million. During the same quarter in the prior year, the company posted $0.57 earnings per share. The business's revenue was up 90.1% on a year-over-year basis. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, sell-side analysts anticipate that Lumentum Holdings Inc. will post 6.4 EPS for the current fiscal year.

Insider Activity at Lumentum

In other Lumentum news, Director Ian Small sold 4,954 shares of Lumentum stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $868.07, for a total transaction of $4,300,418.78. Following the completion of the transaction, the director owned 21,008 shares in the company, valued at approximately $18,236,414.56. The trade was a 19.08% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Vincent Retort sold 3,183 shares of Lumentum stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $953.95, for a total value of $3,036,422.85. Following the transaction, the insider owned 89,563 shares of the company's stock, valued at $85,438,623.85. This trade represents a 3.43% 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 valued at $38,859,220 over the last quarter. 0.43% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Lumentum

Several hedge funds have recently modified their holdings of LITE. Arrowstreet Capital Limited Partnership grew its holdings in shares of Lumentum by 18.7% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company's stock valued at $683,661,000 after acquiring an additional 291,591 shares in the last quarter. Geode Capital Management LLC boosted its position in Lumentum by 9.6% in the fourth quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company's stock worth $521,563,000 after purchasing an additional 123,265 shares during the last quarter. Situational Awareness LP grew its stake in Lumentum by 210.9% in the 4th quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company's stock valued at $478,577,000 after purchasing an additional 880,800 shares during the period. Norges Bank bought a new position in Lumentum in the 4th quarter valued at $474,495,000. Finally, Value Aligned Research Advisors LLC purchased a new stake in shares of Lumentum during the 4th quarter valued at $432,062,000. Institutional investors own 94.05% of the company's stock.

Lumentum Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.