Lumentum (NASDAQ:LITE) Trading Up 6.1% - Should You Buy?

Key Points

• Lumentum shares rose 6.1% on Tuesday, trading as high as $839.88 before closing at $814.80, with volume below its recent average.
• Analyst sentiment remains mostly positive: the stock has 14 Buy ratings and 7 Hold ratings, with a consensus price target of $1,012.67, though some firms recently cut or downgraded targets.
• The company posted strong quarterly results, beating EPS estimates and delivering 90.1% year-over-year revenue growth, while insiders have sold shares in recent months.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) shares traded up 6.1% on Tuesday . The stock traded as high as $839.88 and last traded at $814.80. Approximately 3,735,857 shares traded hands during mid-day trading, a decline of 36% from the average session volume of 5,861,125 shares. The stock had previously closed at $768.15.

Analysts Set New Price Targets

Several research firms have commented on LITE. Mizuho set a $1,100.00 price objective on shares of Lumentum in a report on Wednesday, May 6th. TD Cowen lowered their price target on shares of Lumentum from $995.00 to $800.00 and set a "hold" rating on the stock in a research report on Monday. Rosenblatt Securities upped their price target on shares of Lumentum from $900.00 to $1,300.00 and gave the company a "buy" rating in a research note on Wednesday, May 6th. Zacks Research downgraded shares of Lumentum from a "strong-buy" rating to a "hold" rating in a report on Monday, July 6th. Finally, UBS Group lifted their price objective 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. Fourteen equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,012.67.

Lumentum Stock Performance

The company has a 50-day moving average price of $879.63 and a two-hundred day moving average price of $702.94. The stock has a market capitalization of $63.39 billion, a P/E ratio of 150.89 and a beta of 1.48. 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 released its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, beating analysts' consensus estimates of $2.27 by $0.10. The company had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. Lumentum's revenue was up 90.1% compared to the same quarter last year. During the same period last year, the business earned $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. Equities analysts expect that Lumentum Holdings Inc. will post 6.4 earnings per share for the current year.

Insider Transactions at Lumentum

In related news, Director Ian Small sold 4,954 shares of the stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $868.07, for a total value of $4,300,418.78. Following the sale, the director owned 21,008 shares in the company, valued at approximately $18,236,414.56. This trade represents a 19.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Isaac Hosojiro Harris sold 4,000 shares of Lumentum stock in a transaction on Friday, May 29th. The shares were sold at an average price of $860.00, for a total value of $3,440,000.00. Following the sale, the director directly owned 8,400 shares of the company's stock, valued at $7,224,000. This represents a 32.26% 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 90 days, insiders sold 41,260 shares of company stock worth $38,859,220. 0.43% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Lumentum

A number of institutional investors have recently added to or reduced their stakes in the business. Hilltop National Bank grew its holdings in shares of 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 in the last quarter. Sachetta LLC lifted its position in Lumentum by 118.8% during 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 last quarter. Versant Capital Management Inc lifted its position in Lumentum by 39.5% during the second quarter. Versant Capital Management Inc now owns 106 shares of the technology company's stock valued at $91,000 after purchasing an additional 30 shares during the last quarter. Hilton Head Capital Partners LLC purchased a new position in Lumentum in the 1st quarter worth approximately $25,000. Finally, Abel Hall LLC increased its holdings in shares of Lumentum by 5.5% in 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 last quarter. 94.05% of the stock is currently 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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