Lumentum (NASDAQ:LITE) Trading Up 5.9% - What's Next?

Key Points

• Lumentum shares rose 5.9% on Monday, trading as high as $931.85 amid heavier-than-normal volume of about 7.8 million shares.
• Several analysts raised their price targets on the stock, and the consensus rating now sits at Moderate Buy with an average target of $1,012.43.
• The company recently posted strong quarterly results, beating EPS estimates with $2.37 per share and delivering 90.1% year-over-year revenue growth, though revenue slightly missed expectations.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) was up 5.9% on Monday . The stock traded as high as $931.85 and last traded at $905.00. Approximately 7,795,549 shares were traded during mid-day trading, an increase of 30% from the average daily volume of 5,991,229 shares. The stock had previously closed at $854.96.

Analyst Ratings Changes

Several brokerages recently issued reports on LITE. JPMorgan Chase & Co. raised their target price on shares of Lumentum from $950.00 to $1,130.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. TD Cowen raised their target price on shares of Lumentum from $875.00 to $995.00 and gave the company a "hold" rating in a research note on Wednesday, May 6th. Craig Hallum raised their target price on shares of Lumentum from $900.00 to $1,150.00 in a research note on Wednesday, May 6th. Barclays raised their target price on shares of Lumentum from $750.00 to $1,000.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 6th. Finally, UBS Group raised their target price on shares of Lumentum from $455.00 to $960.00 and gave the company a "neutral" rating in a research note on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and six have given a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $1,012.43.

Lumentum Price Performance

The company's fifty day moving average price is $862.40 and its 200 day moving average price is $585.91. The company has a market capitalization of $70.41 billion, a P/E ratio of 167.59 and a beta of 1.47. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.27 by $0.10. The business had revenue of $808.40 million for the quarter, compared to analysts' expectations of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The firm's quarterly revenue was up 90.1% compared to the same quarter last year. During the same period last year, the firm posted $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, sell-side analysts forecast that Lumentum Holdings Inc. will post 6.49 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Wajid Ali sold 2,487 shares of Lumentum stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $953.95, for a total value of $2,372,473.65. Following the transaction, the chief financial officer directly owned 60,951 shares of the company's stock, valued at $58,144,206.45. This trade represents a 3.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 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, insider Vincent Retort sold 3,183 shares of the business's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $953.95, for a total transaction of $3,036,422.85. Following the sale, the insider directly owned 89,563 shares in the company, valued at approximately $85,438,623.85. The trade was a 3.43% decrease in their position. The SEC filing for this sale provides additional information. 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 35,844 shares of company stock valued at $34,003,107 over the last three months. 0.43% of the stock is owned by corporate insiders.

Institutional Trading of Lumentum

Hedge funds and other institutional investors have recently modified their holdings of the stock. Concorde Asset Management LLC acquired a new position in shares of Lumentum during the first quarter worth $212,000. Glenmede Trust Co. NA lifted its holdings in shares of Lumentum by 39.2% during the first quarter. Glenmede Trust Co. NA now owns 1,515 shares of the technology company's stock worth $1,065,000 after purchasing an additional 427 shares during the period. Essential Partners LLC lifted its holdings in shares of Lumentum by 590.3% during the first quarter. Essential Partners LLC now owns 214 shares of the technology company's stock worth $150,000 after purchasing an additional 183 shares during the period. BankChampaign National Association acquired a new position in shares of Lumentum during the first quarter worth $356,000. Finally, Liontrust Investment Partners LLP lifted its holdings in shares of Lumentum by 25.8% during the first quarter. Liontrust Investment Partners LLP now owns 21,580 shares of the technology company's stock worth $15,166,000 after purchasing an additional 4,419 shares during the period. 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.

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