Lumentum (NASDAQ:LITE) Shares Climb 1.3% - What's Next?

Key Points

• Lumentum shares rose 1.3% to $834.51 in mid-day trading, although volume was 26% below the average. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is broadly positive, with a “Moderate Buy” consensus from 23 analysts and an average price target of $1,078.75; targets range from $820 to $1,300.
• Lumentum exceeded quarterly expectations, reporting $3.23 in EPS versus a $2.97 estimate and $1.01 billion in revenue, up 109.3% year over year. However, insiders sold about $86 million of stock over the past three months, including a $25.7 million CFO sale under a pre-arranged trading plan.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s stock price traded up 1.3% during mid-day trading on Monday. The company traded as high as $874.41 and last traded at $834.51. Approximately 4,058,795 shares were traded during mid-day trading, a decline of 26% from the average daily volume of 5,488,946 shares. The stock had previously closed at $824.13.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the company. Bank of America decreased their target price on Lumentum from $1,100.00 to $1,000.00 and set a "neutral" rating for the company in a research report on Wednesday, August 12th. Raymond James Financial reissued an "outperform" rating and issued a $1,036.00 price target on shares of Lumentum in a report on Wednesday, August 12th. JPMorgan Chase & Co. increased their price target on shares of Lumentum from $1,165.00 to $1,280.00 and gave the company an "overweight" rating in a research report on Wednesday, August 12th. Rosenblatt Securities restated a "buy" rating and set a $1,300.00 price target on shares of Lumentum in a research report on Monday, October 5th. Finally, UBS Group set a $820.00 price objective on shares of Lumentum in a report on Wednesday, August 12th. Sixteen investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $1,078.75.

Lumentum Trading Up 1.3%

The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01. The firm has a 50 day moving average of $931.48 and a 200 day moving average of $877.62. The firm has a market cap of $75.59 billion, a PE ratio of -10.15 and a beta of 1.53.

Lumentum (NASDAQ:LITE - Get Free Report) last released its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.97 by $0.26. The business had revenue of $1.01 billion during 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%. The business's revenue for the quarter was up 109.3% on a year-over-year basis. During the same period last year, the business posted $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Equities analysts anticipate that Lumentum Holdings Inc. will post 19.79 earnings per share for the current year.

Insider Activity

In related news, CFO Wajid Ali sold 24,542 shares of the business's stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $1,048.50, for a total value of $25,732,287.00. Following the sale, the chief financial officer directly owned 75,074 shares in the company, valued at approximately $78,715,089. The trade was a 24.64% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 307 shares of the company's stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $945.00, for a total transaction of $290,115.00. Following the sale, the insider directly owned 108,320 shares in the company, valued at approximately $102,362,400. This trade represents a 0.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 94,496 shares of company stock valued at $85,978,498. 0.28% of the stock is currently owned by insiders.

Institutional Trading of Lumentum

A number of institutional investors have recently modified their holdings of the business. Hilton Head Capital Partners LLC bought a new stake in Lumentum in the first quarter valued at approximately $25,000. Sachetta LLC boosted its stake in shares of 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 period. Burkett Financial Services LLC purchased a new stake in shares of Lumentum during the third quarter valued at approximately $28,000. Meeder Asset Management Inc. bought a new position in shares of Lumentum in the second quarter worth approximately $40,000. Finally, Keating Financial Advisory Services Inc. bought a new position in shares of Lumentum in the second quarter worth approximately $41,000. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

About Lumentum

Lumentum Holdings Inc is a technology company that designs and manufactures optical and photonic products for communications networks, industrial applications, and consumer electronics. Its portfolio includes optical components, modules, and subsystems used in fiber-optic networks, data centers, cloud computing infrastructure, telecommunications equipment, and high-speed connectivity systems.

The company also develops laser products for applications such as industrial processing, sensing, three-dimensional imaging, and other specialized commercial and consumer uses.

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