Lumentum (NASDAQ:LITE) Stock Price Up 10.7% - Time to Buy?

Key Points

• Lumentum shares rose 10.7% on Monday, reaching an intraday high of $616.66, with trading volume 6% above its average.
• The company reported quarterly EPS of $4.57, beating estimates of $4.22, while revenue of $1.26 billion matched expectations and increased 136.5% year over year.
• Analysts have a consensus “Moderate Buy” rating and an average price target of $1,081.61, though several brokerages recently lowered their targets.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) shares traded up 10.7% during trading on Monday. The company traded as high as $616.66 and last traded at $596.16. 5,921,845 shares changed hands during mid-day trading, an increase of 6% from the average session volume of 5,592,743 shares. The stock had previously closed at $538.59.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on LITE. Susquehanna dropped their target price on shares of Lumentum from $1,100.00 to $950.00 and set a "positive" rating on the stock in a report on Tuesday, November 3rd. Needham & Company LLC reduced their price target on Lumentum from $1,040.00 to $800.00 and set a "buy" rating for the company in a report on Tuesday, November 3rd. Stifel Nicolaus set a $806.00 price target on Lumentum in a report on Monday, November 2nd. JPMorgan Chase & Co. boosted their price target on Lumentum from $1,165.00 to $1,280.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 12th. Finally, Wolfe Research restated an "outperform" rating on shares of Lumentum in a research note on Friday, August 21st. Two analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $1,081.61.

Lumentum Stock Performance

The stock has a market capitalization of $54.07 billion, a price-to-earnings ratio of -7.57 and a beta of 1.64. The company's fifty day simple moving average is $894.13 and its 200 day simple moving average is $801.60. The company has a quick ratio of 1.27, a current ratio of 1.61 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its earnings results on Monday, November 2nd. The technology company reported $4.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.22 by $0.35. Lumentum had a negative net margin of 175.82% and a positive return on equity of 28.85%. The company had revenue of $1.26 billion during the quarter, compared to analysts' expectations of $1.26 billion. During the same quarter last year, the company posted $1.10 EPS. Lumentum's quarterly revenue was up 136.5% compared to the same quarter last year. On average, equities research analysts expect that Lumentum Holdings Inc. will post 19.93 earnings per share for the current year.

Insider Transactions at Lumentum

In other news, insider Yuen Wupen sold 1,500 shares of Lumentum stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $827.82, for a total transaction of $1,241,730.00. Following the completion of the sale, the insider owned 100,434 shares of the company's stock, valued at approximately $83,141,273.88. This trade represents a 1.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed 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, CEO Michael E. Hurlston sold 548 shares of the business's stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $958.66, for a total transaction of $525,345.68. Following the completion of the sale, the chief executive officer directly owned 186,951 shares of the company's stock, valued at approximately $179,222,445.66. The trade was a 0.29% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 94,496 shares of company stock worth $85,978,498. 0.28% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Lumentum

Hedge funds have recently bought and sold shares of the business. Financiere des Professionnels Fonds d investissement inc. purchased a new position in Lumentum in the first quarter worth $2,046,000. Styrax Capital LP increased its position in Lumentum by 3.6% in the first quarter. Styrax Capital LP now owns 140,000 shares of the technology company's stock worth $98,386,000 after buying an additional 4,837 shares during the last quarter. Swiss National Bank increased its position in Lumentum by 47.2% in the first quarter. Swiss National Bank now owns 208,015 shares of the technology company's stock worth $146,185,000 after buying an additional 66,700 shares during the last quarter. Franchise GP Ltd raised its stake in shares of Lumentum by 201.7% in the third quarter. Franchise GP Ltd now owns 13,880 shares of the technology company's stock valued at $13,481,000 after buying an additional 9,280 shares during the period. Finally, Triglav Investments D.O.O. bought a new stake in shares of Lumentum in the first quarter valued at $2,945,000. 94.05% of the stock is owned by institutional investors.

About Lumentum

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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