Lumentum (NASDAQ:LITE) Stock Price Up 10.7% After Analyst Upgrade

Key Points

• Lumentum shares rose 10.7% to $648.06 after Sanford C. Bernstein raised its price target from $635 to $700 and maintained an “outperform” rating.
• The company reported quarterly EPS of $4.57, beating the $4.22 consensus estimate, while revenue increased 136.5% year over year to $1.26 billion.
• Analyst views remain mixed: MarketBeat’s consensus rating is “Moderate Buy,” while insiders sold 94,496 shares worth about $86 million over the last quarter.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s share price shot up 10.7% during trading on Wednesday after Sanford C. Bernstein raised their price target on the stock from $635.00 to $700.00. Sanford C. Bernstein currently has an outperform rating on the stock. Lumentum traded as high as $678.67 and last traded at $648.06. Approximately 6,213,774 shares changed hands during trading, an increase of 11% from the average daily volume of 5,592,689 shares. The stock had previously closed at $585.57.

LITE has been the subject of a number of other reports. Bank of America reduced their price target on shares of Lumentum from $1,100.00 to $1,000.00 and set a "neutral" rating for the company in a research note on Wednesday, August 12th. Zacks Research lowered shares of Lumentum from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 12th. Evercore started coverage on shares of Lumentum in a research note on Monday, August 31st. They set an "outperform" rating and a $1,100.00 price objective on the stock. Mizuho set a $1,132.00 target price on Lumentum in a report on Monday, November 2nd. Finally, Raymond James Financial upgraded Lumentum from a "moderate buy" rating to a "strong-buy" rating and set a $1,328.00 target price for the company in a research report on Monday, November 2nd. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,053.17.

Insider Activity

In other news, SVP Jae Kim sold 12,000 shares of the firm's stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $852.58, for a total transaction of $10,230,960.00. Following the completion of the transaction, the senior vice president owned 37,804 shares in the company, valued at approximately $32,230,934.32. This trade represents a 24.09% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael E. Hurlston sold 548 shares of Lumentum stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $958.66, for a total transaction of $525,345.68. Following the completion of the transaction, the chief executive officer directly owned 186,951 shares in the company, valued at $179,222,445.66. This represents a 0.29% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 94,496 shares of company stock valued at $85,978,498 over the last quarter. Insiders own 0.28% of the company's stock.

Trending Headlines about Lumentum

These are some of the LITE headlines that stood out recently:

• Positive Sentiment: Sanford C. Bernstein raised its price target to $700 from $635 and maintained an “outperform” rating, signaling potential upside from the recently quoted share price. Bernstein rating
• Negative Sentiment: Lumentum shares slipped ahead of the market open as investors and deal specialists gave Marvell’s acquisition plan a lukewarm early reception. Because the offer is tied to Marvell’s stock, its falling share price has also reduced the implied value of the deal, adding uncertainty for Lumentum investors. Stock Movers report
• Negative Sentiment: UBS cut its price target sharply, from $960 to $686, and moved to a “neutral” rating—another sign of caution about the near-term risk and deal outlook. UBS rating

Institutional Trading of Lumentum

A number of large investors have recently added to or reduced their stakes in the business. Burkett Financial Services LLC bought a new position in shares of Lumentum in the third quarter valued at $28,000. Putney Financial Group LLC bought a new stake in shares of Lumentum during the 3rd quarter worth $28,000. Signature Equity Partners LLC boosted its stake in shares of Lumentum by 220.0% during the 3rd quarter. Signature Equity Partners LLC now owns 32 shares of the technology company's stock worth $31,000 after acquiring an additional 22 shares in the last quarter. Latitude Advisors LLC bought a new stake in shares of Lumentum during the 3rd quarter worth $40,000. Finally, Meeder Asset Management Inc. acquired a new position in shares of Lumentum in the 2nd quarter worth $40,000. 94.05% of the stock is currently owned by institutional investors.

Lumentum Stock Up 10.7%

The company has a current ratio of 1.61, a quick ratio of 1.27 and a debt-to-equity ratio of 0.01. The firm has a market capitalization of $58.78 billion, a price-to-earnings ratio of -8.23 and a beta of 1.64. The stock has a fifty day moving average of $881.57 and a 200-day moving average of $803.93.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its earnings results on Monday, November 2nd. The technology company reported $4.57 EPS for the quarter, beating the consensus estimate of $4.22 by $0.35. Lumentum had a positive return on equity of 28.85% and a negative net margin of 175.82%. The business had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same period in the prior year, the business posted $1.10 earnings per share. Lumentum's revenue was up 136.5% compared to the same quarter last year. As a group, sell-side analysts expect that Lumentum Holdings Inc. will post 19.93 EPS for the current year.

Lumentum Company Profile

Lumentum Holdings Inc. develops and manufactures optical and photonic products used in communications networks and industrial applications. Its offerings include optical components, modules and lasers that help transmit and process data across telecommunications and data center networks. The company also supplies lasers and related technologies for industrial uses, including precision manufacturing and semiconductor production. Its products serve customers in markets around the world. Lumentum became an independent public company in 2015 through a spin-off from JDSU, now Viavi Solutions.

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