Lumentum (NASDAQ:LITE) Stock Price Up 1% – Time to Buy?

Lumentum Holdings Inc. (NASDAQ:LITE) was up 1% during mid-day trading on Friday . The stock traded as high as $639.56 and last traded at $622.50. Approximately 3,825,536 shares were traded during mid-day trading, a decline of 30% from the average daily volume of 5,428,761 shares. The stock had previously closed at $616.09.

More Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: NVIDIA strategic deal and US$2.0B investment underpin a major growth runway for Lumentum’s AI optics business — supports revenue visibility, R&D and a new U.S. fab. Why Lumentum (LITE) Is Down 5.3% After NVIDIA’s US$2 Billion AI Optics Investment Deal
• Positive Sentiment: CEO Michael Hurlston said Lumentum is “sold out really until the end of 2027,” signaling a heavy, multi-year backlog and strong demand for optical components. Lumentum CEO: sold out through end of 2027, no end in sight
• Positive Sentiment: Analyst optimism: Barclays raised its price target (to $750) after the NVIDIA news and earnings beat, reflecting higher modeled upside for AI optics exposure. Lumentum Holdings (LITE) Sees Strong Analyst Optimism Following Earnings & NVIDIA Deal
• Positive Sentiment: Multiple buy/recommendation write-ups and analyst coverage upgrades/new coverage are spotlighting Lumentum as a core AI-optics play. Lumentum Holdings (LITE): New Buy Recommendation for This Technology Giant
• Positive Sentiment: Inclusion in the S&P 500 (effective March 23) creates a date-certain, index-driven buyer base that should increase demand from passive funds. Lumentum Joins the S&P 500 Soon: Buy the Dip Before the Index Funds Have To?
• Neutral Sentiment: TD Cowen initiated coverage with a Hold rating and a $675 price target (modest upside vs. recent levels) — a balanced view that may temper short-term upside expectations. TD Cowen initiates coverage of Lumentum Holdings (LITE) with hold recommendation
• Negative Sentiment: Short-term selloff/volatility after the NVIDIA announcement likely reflects investor concerns about the convertible preferred structure, potential dilution and profit-taking after a strong rally. A Look At Lumentum Holdings (LITE) Valuation After Nvidia Investment And S&P 500 Inclusion

Analysts Set New Price Targets

Several equities research analysts recently issued reports on the company. Bank of America lifted their price objective on Lumentum to $520.00 and gave the stock a “neutral” rating in a report on Wednesday, February 4th. Mizuho lifted their price target on Lumentum to $645.00 and gave the stock an “outperform” rating in a research note on Tuesday, February 17th. Northland Securities set a $350.00 price target on Lumentum in a research report on Wednesday, December 3rd. UBS Group increased their price objective on Lumentum from $215.00 to $455.00 and gave the company a “neutral” rating in a research note on Wednesday, February 4th. Finally, Rosenblatt Securities raised their price objective on Lumentum to $580.00 and gave the company a “buy” rating in a report on Wednesday, February 4th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, Lumentum has an average rating of “Moderate Buy” and a consensus target price of $550.38.

Lumentum Price Performance

The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.45 and a current ratio of 0.61. The stock’s 50 day simple moving average is $510.02 and its two-hundred day simple moving average is $330.41. The firm has a market capitalization of $44.45 billion, a PE ratio of 190.95 and a beta of 1.38.

Lumentum (NASDAQ:LITE) last posted its quarterly earnings results on Tuesday, February 3rd. The technology company reported $1.67 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.41 by $0.26. Lumentum had a return on equity of 17.27% and a net margin of 11.95%.The business had revenue of $665.50 million during the quarter, compared to analyst estimates of $646.74 million. During the same period in the prior year, the business earned $0.42 earnings per share. The business’s revenue was up 65.5% compared to the same quarter last year. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. On average, sell-side analysts forecast that Lumentum Holdings Inc. will post 0.03 EPS for the current year.

Insider Buying and Selling

In other news, insider Yuen Wupen sold 3,157 shares of Lumentum stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $538.00, for a total transaction of $1,698,466.00. Following the transaction, the insider owned 88,439 shares in the company, valued at $47,580,182. The trade was a 3.45% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Vincent Retort sold 3,441 shares of the company’s stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $545.78, for a total transaction of $1,878,028.98. Following the completion of the sale, the insider directly owned 95,975 shares of the company’s stock, valued at $52,381,235.50. This represents a 3.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 65,775 shares of company stock valued at $38,851,343 in the last quarter. Corporate insiders own 0.43% of the company’s stock.

Hedge Funds Weigh In On Lumentum

A number of institutional investors have recently bought and sold shares of LITE. EverSource Wealth Advisors LLC grew its stake in shares of Lumentum by 363.9% in the 3rd quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company’s stock valued at $27,000 after buying an additional 131 shares during the period. V Square Quantitative Management LLC purchased a new stake in shares of Lumentum during the 4th quarter valued at approximately $28,000. Truvestments Capital LLC raised its position in shares of Lumentum by 300.0% during the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock valued at $28,000 after buying an additional 57 shares during the period. Triumph Capital Management acquired a new position in Lumentum in the fourth quarter valued at approximately $30,000. Finally, Danske Bank A S acquired a new position in Lumentum in the third quarter valued at approximately $33,000. 94.05% of the stock is owned by hedge funds and other institutional investors.

About Lumentum

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.