Lumentum (NASDAQ:LITE) Shares Down 2.7% - Time to Sell?

Key Points

• Lumentum shares fell 2.7% to $847.37, with trading volume 41% below the average. Despite the decline, analysts maintain a “Moderate Buy” consensus and an average price target of $1,053.83.
• The company exceeded quarterly expectations, reporting $3.23 in adjusted EPS versus $2.97 expected and $1.01 billion in revenue, up 109.3% year over year. Analysts project $19.76 in EPS for the current year.
• Insiders sold 64,147 shares worth approximately $55.0 million over the last quarter under pre-arranged trading plans, while institutional investors continue to own a dominant 94.05% of the stock.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) was down 2.7% on Thursday . The stock traded as low as $818.89 and last traded at $847.37. Approximately 3,284,938 shares changed hands during trading, a decline of 41% from the average daily volume of 5,602,869 shares. The stock had previously closed at $870.58.

Analyst Ratings Changes

A number of equities analysts have recently commented on LITE shares. Deutsche Bank Aktiengesellschaft started coverage on Lumentum in a research report on Monday. They set a "buy" rating and a $1,200.00 price objective for the company. Zacks Research raised shares of Lumentum from a "hold" rating to a "strong-buy" rating in a report on Thursday, August 20th. Craig Hallum lifted their price target on shares of Lumentum from $900.00 to $1,150.00 in a research note on Wednesday, May 6th. JPMorgan Chase & Co. boosted their price target on shares of Lumentum from $1,165.00 to $1,280.00 and gave the stock an "overweight" rating in a report on Wednesday, August 12th. Finally, Jefferies Financial Group reissued a "buy" rating and issued a $1,200.00 price objective on shares of Lumentum in a research report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $1,053.83.

Lumentum Trading Down 2.7%

The firm has a market cap of $76.01 billion, a PE ratio of -10.31 and a beta of 1.53. The company has a current ratio of 1.68, a quick ratio of 1.40 and a debt-to-equity ratio of 0.01. The business has a fifty day moving average price of $813.66 and a 200 day moving average price of $813.27.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, topping the consensus estimate of $2.97 by $0.26. The firm had revenue of $1.01 billion during the quarter, compared to analysts' expectations of $987.70 million. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%.The firm's revenue was up 109.3% compared to the same quarter last year. During the same quarter 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. Analysts forecast that Lumentum Holdings Inc. will post 19.76 EPS for the current year.

Insider Activity at Lumentum

In other news, SVP Jae Kim sold 12,000 shares of Lumentum stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $852.58, for a total transaction of $10,230,960.00. Following the sale, the senior vice president owned 37,804 shares in the company, valued at approximately $32,230,934.32. The trade was a 24.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Vincent Retort sold 38,663 shares of the business's stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $852.59, for a total value of $32,963,687.17. Following the completion of the sale, the insider directly owned 78,440 shares of the company's stock, valued at $66,877,159.60. The trade was a 33.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 64,147 shares of company stock valued at $54,950,611 over the last quarter. 0.43% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Hilton Head Capital Partners LLC acquired a new stake in shares of Lumentum in the first quarter valued at approximately $25,000. Sachetta LLC raised its position in Lumentum by 118.8% in the 1st 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. Truvestments Capital LLC boosted its stake in Lumentum by 300.0% during the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company's stock worth $28,000 after purchasing an additional 57 shares during the period. Triumph Capital Management acquired a new stake in Lumentum during the 4th quarter worth $30,000. Finally, Danske Bank A S purchased a new position in Lumentum during the 3rd quarter worth $33,000. Hedge funds and other institutional investors own 94.05% of the company's stock.

Lumentum Company Profile

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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