Lumentum (NASDAQ:LITE) Shares Up 6% - Here's What Happened

Key Points

• Lumentum shares rose 6% to approximately $939 after the company reported quarterly earnings of $3.23 per share, beating estimates of $2.97, while revenue increased 109.3% year over year to $1.01 billion.
• Analyst sentiment remains positive: Lumentum has a consensus “Moderate Buy” rating and an average price target of $1,044.67, with recent targets ranging from $820 to $1,300.
• Institutional investors own 94.05% of the company, while insiders sold 16,352 shares worth $14.3 million during the last quarter, including transactions conducted under pre-arranged trading plans.

Shares of Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) rose 6% on Wednesday . The company traded as high as $947.53 and last traded at $939.03. Approximately 4,353,440 shares traded hands during trading, a decline of 23% from the average session volume of 5,680,492 shares. The stock had previously closed at $885.57.

Analyst Ratings Changes

A number of brokerages recently issued reports on LITE. TD Cowen lifted their price target on shares of Lumentum from $800.00 to $820.00 and gave the stock a "hold" rating in a research note on Wednesday, August 12th. Jefferies Financial Group reiterated a "buy" rating and set a $1,200.00 price objective on shares of Lumentum in a research note on Wednesday, May 6th. Zacks Research raised shares of Lumentum from a "hold" rating to a "strong-buy" rating in a report on Thursday, August 20th. Rosenblatt Securities reissued a "buy" rating and issued a $1,300.00 target price on shares of Lumentum in a research report on Wednesday, August 12th. Finally, Needham & Company LLC restated a "buy" rating and issued a $1,040.00 target price on shares of Lumentum in a research note on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Lumentum has a consensus rating of "Moderate Buy" and an average target price of $1,044.67.

Lumentum Trading Up 6.0%

The stock has a market cap of $84.23 billion, a price-to-earnings ratio of -11.42 and a beta of 1.50. The business's fifty day simple moving average is $807.42 and its 200 day simple moving average is $798.54. 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 issued its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, topping analysts' consensus estimates 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 company had revenue of $1.01 billion for the quarter, compared to analysts' expectations of $987.70 million. During the same period in the prior year, the company earned $0.88 earnings per share. The firm's revenue was up 109.3% compared to the same quarter last year. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. On average, research analysts predict that Lumentum Holdings Inc. will post 19.76 EPS for the current year.

Insider Buying and Selling at Lumentum

In related news, SVP Jae Kim sold 1,904 shares of the stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $827.82, for a total transaction of $1,576,169.28. Following the sale, the senior vice president owned 42,096 shares in the company, valued at $34,847,910.72. This represents a 4.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 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. Also, Director Isaac Hosojiro Harris sold 1,416 shares of the firm's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $1,000.08, for a total transaction of $1,416,113.28. Following the completion of the transaction, the director directly owned 6,984 shares in the company, valued at $6,984,558.72. This represents a 16.86% decrease in their position. 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. Insiders sold 16,352 shares of company stock worth $14,315,562 in the last quarter. 0.43% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Groupe la Francaise bought a new position in Lumentum during the 2nd quarter worth $7,260,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in Lumentum in the second quarter valued at $17,848,000. CYBER HORNET ETFs LLC lifted its stake in Lumentum by 7.2% in the second quarter. CYBER HORNET ETFs LLC now owns 209 shares of the technology company's stock valued at $179,000 after buying an additional 14 shares during the last quarter. California State Teachers Retirement System boosted its holdings in shares of Lumentum by 112,343.2% during the second quarter. California State Teachers Retirement System now owns 92,237,160 shares of the technology company's stock valued at $79,145,018,000 after acquiring an additional 92,155,130 shares during the period. Finally, Washington Trust Advisors Inc. acquired a new position in shares of Lumentum during the second quarter valued at $61,000. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source