Lumentum (NASDAQ:LITE) Stock Price Down 2.2% on Insider Selling

Key Points

• Lumentum shares fell 2.2% to $921.32 after insider Yuen Wupen sold 1,500 shares across three transactions totaling about $1.42 million. The sales were made under a pre-arranged Rule 10b5-1 trading plan, and the insider still owned more than 109,000 shares.
• Analysts remain broadly bullish, with a “Moderate Buy” consensus rating and an average price target of $1,066.87; Citigroup recently raised its target to $1,400.
• Lumentum reported quarterly EPS of $3.23, exceeding estimates of $2.97, while revenue rose 109.3% year over year to $1.01 billion. Institutional investors own approximately 94.05% of the company’s shares.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) dropped 2.2% on Monday following insider selling activity. The stock traded as low as $881.23 and last traded at $921.32. 4,417,876 shares traded hands during trading, a decline of 20% from the average daily volume of 5,525,641 shares. The stock had previously closed at $941.65.

Specifically, insider Yuen Wupen sold 500 shares of Lumentum stock in a transaction dated Friday, September 25th. The stock was sold at an average price of $935.75, for a total value of $467,875.00. Following the transaction, the insider directly owned 109,127 shares of the company's stock, valued at $102,115,590.25. The trade was a 0.46% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 500 shares of the business's stock in a transaction that occurred on Wednesday, September 23rd. The stock was sold at an average price of $946.56, for a total transaction of $473,280.00. Following the sale, the insider owned 109,627 shares of the company's stock, valued at approximately $103,768,533.12. This represents a 0.45% 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. In related news, insider Yuen Wupen sold 500 shares of the company's stock in a transaction on Monday, September 21st. The shares were sold at an average price of $959.27, for a total transaction of $479,635.00. Following the completion of the sale, the insider directly owned 111,127 shares of the company's stock, valued at approximately $106,600,797.29. This represents a 0.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

LITE has been the subject of several recent research reports. Citigroup increased their price objective on shares of Lumentum from $1,200.00 to $1,400.00 and gave the company a "buy" rating in a research report on Monday. Raymond James Financial reissued an "outperform" rating and set a $1,036.00 target price on shares of Lumentum in a research report on Wednesday, August 12th. 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. Mizuho lifted their price target on shares of Lumentum from $1,100.00 to $1,140.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 12th. Finally, Evercore began coverage on shares of Lumentum in a research note on Monday, August 31st. They set an "outperform" rating and a $1,100.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Lumentum currently has an average rating of "Moderate Buy" and an average price target of $1,066.87.

Lumentum Stock Performance

The company has a market capitalization of $82.64 billion, a price-to-earnings ratio of -11.21 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 stock has a 50-day simple moving average of $862.03 and a 200-day simple moving average of $844.75.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly 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. The business had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The business's quarterly revenue was up 109.3% compared to the same quarter last year. During the same quarter last year, the company earned $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. On average, analysts anticipate that Lumentum Holdings Inc. will post 19.78 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Envestnet Portfolio Solutions Inc. bought a new stake in shares of Lumentum in the 2nd quarter worth about $337,000. Andra AP fonden bought a new position in shares of Lumentum during the second quarter worth about $17,504,000. Silicon Valley Capital Partners grew its stake in Lumentum by 800.0% in the second quarter. Silicon Valley Capital Partners now owns 450 shares of the technology company's stock worth $386,000 after purchasing an additional 400 shares in the last quarter. Sequoia Financial Advisors LLC grew its stake in Lumentum by 36.9% in the second quarter. Sequoia Financial Advisors LLC now owns 2,272 shares of the technology company's stock worth $1,950,000 after purchasing an additional 612 shares in the last quarter. Finally, Van Hulzen Asset Management LLC bought a new stake in Lumentum in the second quarter valued at about $644,000. 94.05% of the stock is owned by institutional investors and hedge funds.

Lumentum Company Profile

Lumentum Holdings Inc NASDAQ: LITE designs and manufactures optical and photonic products used to transmit, process and control light. Its portfolio includes optical components, modules, subsystems, lasers and photonic integrated circuits that support communications networks, data centers, cloud infrastructure and industrial applications.

The company also supplies technologies for consumer electronics and 3D sensing, including laser-based products used in applications such as depth sensing and facial recognition.

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