Northland Securities Expects Higher Earnings for Lumentum

Key Points

• Northland Securities raised its Lumentum Q1 2027 EPS estimate to $3.81 from $3.02 and maintained an “Outperform” rating with a $1,200 price target. It projects FY2027 EPS of $19.81.
• Lumentum recently beat quarterly expectations, reporting $3.23 EPS versus the $2.97 consensus and $1.01 billion in revenue, up 109.3% year over year. The company issued Q1 2027 EPS guidance of $4.05–$4.35.
• The stock opened at $879.28 and has gained 6.2%, while analyst sentiment remains positive with a “Moderate Buy” consensus and an average target price of $1,044.67; institutional investors own 94.05% of shares.

Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) - Equities research analysts at Northland Securities lifted their Q1 2027 earnings per share (EPS) estimates for Lumentum in a note issued to investors on Wednesday, August 12th. Northland Securities analyst T. Savageaux now anticipates that the technology company will post earnings of $3.81 per share for the quarter, up from their previous forecast of $3.02. Northland Securities currently has a "Outperform" rating and a $1,200.00 price target on the stock. The consensus estimate for Lumentum's current full-year earnings is $16.95 per share. Northland Securities also issued estimates for Lumentum's Q2 2027 earnings at $4.63 EPS, Q3 2027 earnings at $5.20 EPS, Q4 2027 earnings at $6.20 EPS and FY2027 earnings at $19.81 EPS.

LITE has been the topic of a number of other reports. Raymond James Financial reissued an "outperform" rating and set a $1,036.00 price target on shares of Lumentum in a report on Wednesday, August 12th. JPMorgan Chase & Co. boosted their price target on Lumentum from $1,165.00 to $1,280.00 and gave the stock an "overweight" rating in a report on Wednesday, August 12th. Wolfe Research reaffirmed an "outperform" rating on shares of Lumentum in a report on Friday. Barclays boosted their target price on shares of Lumentum from $750.00 to $1,000.00 and gave the stock an "equal weight" rating in a report on Wednesday, May 6th. Finally, Weiss Ratings cut shares of Lumentum from a "hold (c-)" rating to a "sell (d-)" rating in a research note on Wednesday. Thirteen analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Lumentum currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,044.67.

Lumentum Stock Up 6.2%

LITE opened at $879.28 on Friday. The stock has a market cap of $78.87 billion, a price-to-earnings ratio of -10.70 and a beta of 1.50. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.40 and a current ratio of 1.68. The firm's fifty day moving average is $810.86 and its 200 day moving average is $789.68. Lumentum has a fifty-two week low of $115.21 and a fifty-two week high of $1,085.68.

Lumentum (NASDAQ:LITE - Get Free Report) last released its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, beating the consensus estimate of $2.97 by $0.26. The company had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $987.70 million. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%.Lumentum's quarterly revenue was up 109.3% compared to the same quarter last year. During the same period in the previous year, the business earned $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS.

Insider Buying and Selling at Lumentum

In other news, Director Isaac Hosojiro Harris sold 4,000 shares of the company's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $860.00, for a total transaction of $3,440,000.00. Following the transaction, the director owned 8,400 shares of the company's stock, valued at approximately $7,224,000. This represents a 32.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Vincent Retort sold 3,183 shares of the stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $909.43, for a total value of $2,894,715.69. Following the completion of the sale, the insider owned 114,495 shares in the company, valued at approximately $104,125,187.85. The trade was a 2.70% decrease in their ownership of the stock. 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 have sold 9,965 shares of company stock worth $8,993,110 over the last quarter. Insiders own 0.43% of the company's stock.

Institutional Trading of Lumentum

Several institutional investors and hedge funds have recently made changes to their positions in LITE. Advisors Asset Management Inc. boosted its stake in shares of Lumentum by 36.8% during the first quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company's stock valued at $59,000 after purchasing an additional 254 shares during the period. NewEdge Advisors LLC increased its stake in Lumentum by 109.9% in the 1st quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company's stock worth $747,000 after buying an additional 6,275 shares during the period. Empowered Funds LLC increased its stake in Lumentum by 9.1% in the 1st quarter. Empowered Funds LLC now owns 8,139 shares of the technology company's stock worth $507,000 after buying an additional 680 shares during the period. Hsbc Holdings PLC bought a new stake in Lumentum during the 2nd quarter valued at about $298,000. Finally, Arrowstreet Capital Limited Partnership bought a new stake in Lumentum during the 2nd quarter valued at about $1,712,000. 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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