Morgan Stanley Raises Lumentum (NASDAQ:LITE) Price Target to $92.00

Key Points

• Morgan Stanley has raised the price target for Lumentum (NASDAQ:LITE) from $85.00 to $92.00, maintaining an "equal weight" rating.
• Despite the price increase, the new target suggests a potential downside of 15.92% from the current stock price.
• Lumentum's recent earnings report revealed a quarterly revenue of $425.20 million, surpassing analyst expectations and reflecting a 16% increase compared to the previous year.

Lumentum (NASDAQ:LITE - Get Free Report) had its price objective lifted by analysts at Morgan Stanley from $85.00 to $92.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage currently has an "equal weight" rating on the technology company's stock. Morgan Stanley's price objective points to a potential downside of 15.92% from the stock's current price.

Several other equities analysts also recently commented on the stock. Raymond James Financial boosted their target price on shares of Lumentum from $80.00 to $90.00 and gave the stock a "strong-buy" rating in a report on Wednesday, June 4th. B. Riley increased their target price on shares of Lumentum from $65.00 to $73.00 and gave the company a "neutral" rating in a research note on Wednesday, June 4th. Wolfe Research started coverage on shares of Lumentum in a report on Tuesday, July 8th. They issued an "outperform" rating on the stock. Rosenblatt Securities reissued a "buy" rating and set a $105.00 target price on shares of Lumentum in a research report on Thursday, June 12th. Finally, UBS Group cut their target price on shares of Lumentum from $96.00 to $78.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 7th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, eleven have given a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat.com, Lumentum currently has an average rating of "Moderate Buy" and a consensus price target of $88.20.

Lumentum Stock Up 2.6%

Shares of LITE traded up $2.74 on Monday, hitting $109.42. 327,757 shares of the stock traded hands, compared to its average volume of 2,493,561. The company has a market capitalization of $7.59 billion, a PE ratio of -17.00 and a beta of 1.33. The company has a debt-to-equity ratio of 2.91, a quick ratio of 3.53 and a current ratio of 4.72. The business has a 50 day simple moving average of $91.28 and a 200 day simple moving average of $77.09. Lumentum has a one year low of $38.28 and a one year high of $114.12.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its earnings results on Tuesday, May 6th. The technology company reported $0.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.07. The company had revenue of $425.20 million during the quarter, compared to analyst estimates of $418.18 million. Lumentum had a negative net margin of 29.87% and a negative return on equity of 8.69%. The firm's quarterly revenue was up 16.0% compared to the same quarter last year. During the same period in the previous year, the business posted $0.09 earnings per share. As a group, equities analysts forecast that Lumentum will post 0.03 earnings per share for the current fiscal year.

Insider Activity at Lumentum

In other news, Director Alan S. Lowe sold 20,000 shares of Lumentum stock in a transaction that occurred on Thursday, June 26th. The shares were sold at an average price of $93.47, for a total transaction of $1,869,400.00. Following the completion of the transaction, the director directly owned 230,471 shares of the company's stock, valued at $21,542,124.37. The trade was a 7.98% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Vincent Retort sold 22,719 shares of Lumentum stock in a transaction that occurred on Tuesday, July 29th. The shares were sold at an average price of $110.00, for a total transaction of $2,499,090.00. Following the transaction, the insider directly owned 121,747 shares of the company's stock, valued at approximately $13,392,170. This trade represents a 15.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 89,768 shares of company stock worth $8,294,633 in the last ninety days. 0.19% of the stock is owned by company insiders.

Institutional Investors Weigh In On Lumentum

Several institutional investors and hedge funds have recently added to or reduced their stakes in LITE. Skandinaviska Enskilda Banken AB publ acquired a new stake in Lumentum during the 1st quarter worth $25,000. Rakuten Securities Inc. boosted its stake in Lumentum by 164.4% during the 1st quarter. Rakuten Securities Inc. now owns 476 shares of the technology company's stock worth $30,000 after purchasing an additional 296 shares during the last quarter. Golden State Wealth Management LLC boosted its stake in Lumentum by 103.2% during the 1st quarter. Golden State Wealth Management LLC now owns 512 shares of the technology company's stock worth $32,000 after purchasing an additional 260 shares during the last quarter. CoreCap Advisors LLC boosted its position in shares of Lumentum by 2,235.3% during the 4th quarter. CoreCap Advisors LLC now owns 397 shares of the technology company's stock valued at $33,000 after acquiring an additional 380 shares during the last quarter. Finally, FNY Investment Advisers LLC acquired a new position in shares of Lumentum during the 2nd quarter valued at about $38,000. Hedge funds and other institutional investors own 94.05% of the company's stock.

Lumentum Company Profile

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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