Lumentum (NASDAQ:LITE) Upgraded to Buy at Wall Street Zen

Key Points

• Lumentum (NASDAQ:LITE) has been upgraded from a "hold" to a "buy" rating by Wall Street Zen, signifying increased confidence in the company's stock performance.
• After reporting earnings that surpassed analyst expectations, Lumentum's revenue increased by 55.9% compared to the same quarter last year, reaching $480.70 million.
• Several brokerages have raised their price targets for Lumentum, with a consensus target of $133.36, reflecting a positive outlook for the stock among analysts.

Lumentum (NASDAQ:LITE - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Friday.

A number of other brokerages also recently issued reports on LITE. Needham & Company LLC restated a "buy" rating and set a $145.00 price target (up previously from $135.00) on shares of Lumentum in a report on Wednesday, August 13th. KGI Securities began coverage on Lumentum in a report on Monday, August 18th. They set an "outperform" rating on the stock. Stifel Nicolaus boosted their price target on Lumentum from $100.00 to $132.00 and gave the company a "buy" rating in a report on Wednesday, August 13th. Susquehanna lifted their price objective on Lumentum to $125.00 and gave the company a "positive" rating in a research report on Tuesday, August 12th. Finally, Morgan Stanley lifted their price objective on Lumentum from $92.00 to $100.00 and gave the company an "equal weight" rating in a research report on Wednesday, August 13th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $133.36.

Lumentum Trading Up 1.0%

Shares of LITE traded up $1.64 during trading hours on Friday, hitting $160.75. The company had a trading volume of 2,309,962 shares, compared to its average volume of 4,034,848. The firm has a market cap of $11.24 billion, a P/E ratio of 698.91 and a beta of 1.42. The stock's 50 day moving average price is $131.19 and its 200 day moving average price is $93.32. The company has a quick ratio of 3.18, a current ratio of 4.37 and a debt-to-equity ratio of 2.26. Lumentum has a 52-week low of $45.65 and a 52-week high of $173.38.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its quarterly earnings results on Tuesday, August 12th. The technology company reported $0.88 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.79 by $0.09. Lumentum had a negative return on equity of 3.02% and a net margin of 1.57%.The company had revenue of $480.70 million for the quarter, compared to the consensus estimate of $465.27 million. During the same quarter in the previous year, the business earned $0.06 EPS. Lumentum's revenue was up 55.9% compared to the same quarter last year. Lumentum has set its Q1 2026 guidance at 0.950-1.100 EPS. On average, research analysts predict that Lumentum will post 0.03 EPS for the current year.

Insider Transactions at Lumentum

In other news, SVP Jae Kim sold 4,507 shares of the business's stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $116.88, for a total value of $526,778.16. Following the sale, the senior vice president directly owned 33,465 shares of the company's stock, valued at $3,911,389.20. The trade was a 11.87% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Wajid Ali sold 2,526 shares of the business's stock in a transaction that occurred on Tuesday, August 26th. The stock was sold at an average price of $124.39, for a total value of $314,209.14. Following the completion of the sale, the chief financial officer directly owned 77,087 shares in the company, valued at approximately $9,588,851.93. This represents a 3.17% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 41,687 shares of company stock worth $4,759,552. Company insiders own 0.19% of the company's stock.

Institutional Trading of Lumentum

Hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its position in shares of Lumentum by 0.6% in the 1st quarter. Vanguard Group Inc. now owns 7,430,185 shares of the technology company's stock worth $463,198,000 after purchasing an additional 47,811 shares in the last quarter. Cambridge Investment Research Advisors Inc. bought a new position in Lumentum in the 1st quarter valued at approximately $260,000. UMB Bank n.a. lifted its position in Lumentum by 132.9% in the 1st quarter. UMB Bank n.a. now owns 785 shares of the technology company's stock valued at $49,000 after acquiring an additional 448 shares in the last quarter. FORA Capital LLC bought a new position in Lumentum in the 1st quarter valued at approximately $642,000. Finally, Principal Financial Group Inc. lifted its position in Lumentum by 1.1% in the 1st quarter. Principal Financial Group Inc. now owns 159,154 shares of the technology company's stock valued at $9,922,000 after acquiring an additional 1,660 shares in the last quarter. 94.05% of the stock is owned by institutional investors.

About Lumentum

Lumentum Holdings Inc manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables.

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