Lumentum (NASDAQ:LITE) Shares Up 11% - Time to Buy?

Key Points

• Lumentum shares jumped 11% to $978.54, with trading volume 31% above average.
• Analysts maintain a “Moderate Buy” consensus, with an average price target of $1,053.83; ratings include one Strong Buy, 15 Buys, five Holds and one Sell.
• The company exceeded quarterly expectations with $3.23 in EPS versus $2.97 forecast and $1.01 billion in revenue, up 109.3% year over year. However, insiders sold roughly $55.8 million of shares during the last quarter.

Shares of Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) shot up 11% during trading on Tuesday . The company traded as high as $1,000.15 and last traded at $978.54. 7,358,237 shares were traded during trading, an increase of 31% from the average session volume of 5,599,289 shares. The stock had previously closed at $881.26.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on LITE. Zacks Research upgraded Lumentum from a "hold" rating to a "strong-buy" rating in a report on Thursday, August 20th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $1,300.00 price objective on shares of Lumentum in a research note on Wednesday, August 12th. JPMorgan Chase & Co. upped their price target on shares of Lumentum from $1,165.00 to $1,280.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 12th. UBS Group set a $820.00 price objective on shares of Lumentum in a research note on Wednesday, August 12th. Finally, Bank of America dropped their price target on shares of Lumentum from $1,100.00 to $1,000.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 12th. One equities 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 given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $1,053.83.

Lumentum Trading Up 11.0%

The firm's fifty day moving average price is $815.21 and its 200-day moving average price is $819.50. The company has a market cap of $87.77 billion, a price-to-earnings ratio of -11.90 and a beta of 1.53. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.68 and a quick ratio of 1.40.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its earnings results on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, topping the consensus estimate of $2.97 by $0.26. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The firm had revenue of $1.01 billion during the quarter, compared to analysts' expectations of $987.70 million. During the same quarter in the prior year, the firm earned $0.88 EPS. Lumentum's quarterly revenue was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. On average, equities analysts expect that Lumentum Holdings Inc. will post 19.78 EPS for the current fiscal year.

Insiders Place Their Bets

In other Lumentum news, insider Yuen Wupen sold 500 shares of Lumentum stock in a transaction on Friday, September 4th. The stock was sold at an average price of $860.00, for a total transaction of $430,000.00. Following the sale, the insider owned 116,127 shares of the company's stock, valued at $99,869,220. The trade was a 0.43% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael Hurlston sold 548 shares of the business's stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $958.66, for a total value of $525,345.68. Following the transaction, the chief executive officer owned 186,951 shares of the company's stock, valued at $179,222,445.66. This trade represents a 0.29% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 65,147 shares of company stock valued at $55,812,856 in the last quarter. 0.43% of the stock is owned by insiders.

Institutional Investors Weigh In On Lumentum

Several hedge funds and other institutional investors have recently added to or reduced their stakes in LITE. CYBER HORNET ETFs LLC increased its position in shares of Lumentum by 7.2% during the 2nd quarter. CYBER HORNET ETFs LLC now owns 209 shares of the technology company's stock valued at $179,000 after purchasing an additional 14 shares during the period. Hilltop National Bank boosted its stake in Lumentum by 26.8% during the second quarter. Hilltop National Bank now owns 71 shares of the technology company's stock valued at $61,000 after buying an additional 15 shares in the last quarter. Sachetta LLC grew its holdings in Lumentum by 118.8% during the first quarter. Sachetta LLC now owns 35 shares of the technology company's stock worth $25,000 after acquiring an additional 19 shares during the period. Toth Financial Advisory Corp raised its position in Lumentum by 127.3% in the second quarter. Toth Financial Advisory Corp now owns 50 shares of the technology company's stock worth $43,000 after acquiring an additional 28 shares in the last quarter. Finally, Versant Capital Management Inc lifted its holdings in Lumentum by 39.5% in the 2nd quarter. Versant Capital Management Inc now owns 106 shares of the technology company's stock valued at $91,000 after acquiring an additional 30 shares during the last quarter. 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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