Lumentum (NASDAQ:LITE) Trading Up 4.6% - What's Next?

Key Points

• Lumentum shares rose 4.6% to about $877.33 in mid-day trading, although volume was significantly below the average session level.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $1,053.83; targets range from $820 to $1,200.
• The company beat quarterly earnings and revenue expectations, reporting $3.23 in EPS and $1.01 billion in revenue, with revenue up 109.3% year over year. Insiders have sold approximately $57.2 million of stock over the past three months.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) shares rose 4.6% during mid-day trading on Wednesday . The company traded as high as $894.74 and last traded at $877.3290. Approximately 763,245 shares were traded during trading, a decline of 86% from the average session volume of 5,524,483 shares. The stock had previously closed at $838.96.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the stock. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Lumentum in a research report on Monday, August 31st. They set a "buy" rating and a $1,200.00 price objective on the stock. Bank of America cut their target price 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. TD Cowen lifted their price target on shares of Lumentum from $800.00 to $820.00 and gave the company a "hold" rating in a report on Wednesday, August 12th. Weiss Ratings cut shares of Lumentum from a "hold (c-)" rating to a "sell (d-)" rating in a research note on Wednesday, August 19th. Finally, Northland Securities increased their price objective on shares of Lumentum from $1,000.00 to $1,200.00 and gave the company an "outperform" rating in a report on Wednesday, June 3rd. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $1,053.83.

Lumentum Stock Up 7.2%

The firm has a market capitalization of $80.70 billion, a PE ratio of -10.94 and a beta of 1.53. The company has a fifty day moving average price of $834.38 and a 200-day moving average price of $830.21. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.40 and a current ratio of 1.68.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, beating 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 firm had revenue of $1.01 billion during the quarter, compared to analyst estimates of $987.70 million. During the same period last year, the firm posted $0.88 earnings per share. Lumentum's revenue for the quarter was up 109.3% compared to the same quarter last year. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, analysts expect that Lumentum Holdings Inc. will post 19.78 earnings per share for the current year.

Insider Activity

In related news, SVP Jae Kim sold 12,000 shares of the stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $852.58, for a total value of $10,230,960.00. Following the completion of the transaction, the senior vice president owned 37,804 shares of the company's stock, valued at approximately $32,230,934.32. This trade represents a 24.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael Hurlston sold 548 shares of Lumentum stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $958.66, for a total value of $525,345.68. Following the completion of the transaction, the chief executive officer owned 186,951 shares of the company's stock, valued at approximately $179,222,445.66. This represents a 0.29% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 66,647 shares of company stock worth $57,172,641. 0.43% of the stock is currently owned by corporate insiders.

Institutional Trading of Lumentum

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. CYBER HORNET ETFs LLC boosted its holdings 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 purchasing an additional 14 shares in the last quarter. Hilltop National Bank increased its stake in Lumentum by 26.8% in the second quarter. Hilltop National Bank now owns 71 shares of the technology company's stock valued at $61,000 after purchasing an additional 15 shares during the last quarter. Sachetta LLC raised 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 purchasing an additional 19 shares in the last quarter. Toth Financial Advisory Corp raised its holdings in Lumentum by 127.3% during the second quarter. Toth Financial Advisory Corp now owns 50 shares of the technology company's stock worth $43,000 after purchasing an additional 28 shares in the last quarter. Finally, Versant Capital Management Inc lifted its position in shares of Lumentum by 39.5% during the 2nd quarter. Versant Capital Management Inc now owns 106 shares of the technology company's stock worth $91,000 after buying an additional 30 shares during the last quarter. Hedge funds and other institutional investors own 94.05% of the company's stock.

About Lumentum

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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