Lumentum (NASDAQ:LITE – Get Free Report) had its price target raised by equities research analysts at Morgan Stanley from $520.00 to $595.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage presently has an “equal weight” rating on the technology company’s stock. Morgan Stanley’s target price would suggest a potential downside of 15.90% from the stock’s current price.
LITE has been the topic of a number of other reports. UBS Group raised their price objective on Lumentum from $215.00 to $455.00 and gave the company a “neutral” rating in a report on Wednesday, February 4th. Stifel Nicolaus increased their price target on shares of Lumentum to $800.00 and gave the company a “buy” rating in a research report on Monday, March 2nd. Zacks Research raised shares of Lumentum from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, December 2nd. Rosenblatt Securities reaffirmed a “buy” rating and issued a $900.00 price objective on shares of Lumentum in a research note on Wednesday. Finally, Needham & Company LLC increased their target price on shares of Lumentum to $850.00 and gave the company a “buy” rating in a report on Wednesday, March 4th. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Lumentum currently has a consensus rating of “Moderate Buy” and a consensus price target of $575.06.
View Our Latest Research Report on Lumentum
Lumentum Price Performance
Lumentum (NASDAQ:LITE – Get Free Report) last released its earnings results on Tuesday, February 3rd. The technology company reported $1.67 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 for the quarter, compared to analysts’ expectations of $646.74 million. During the same quarter in the prior year, the firm earned $0.42 earnings per share. The firm’s revenue was up 65.5% on a year-over-year basis. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. Analysts expect that Lumentum will post 0.03 earnings per share for the current fiscal year.
Insider Activity
In related news, insider Vincent Retort sold 3,441 shares of the firm’s stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $545.78, for a total value of $1,878,028.98. Following the sale, the insider directly owned 95,975 shares of the company’s stock, valued at $52,381,235.50. This trade represents a 3.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Wajid Ali sold 5,302 shares of the business’s stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $691.13, for a total value of $3,664,371.26. Following the transaction, the chief financial officer owned 66,287 shares in the company, valued at approximately $45,812,934.31. This represents a 7.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 65,775 shares of company stock worth $38,851,343 in the last quarter. Insiders own 0.43% of the company’s stock.
Institutional Investors Weigh In On Lumentum
A number of large investors have recently made changes to their positions in the business. Rockefeller Capital Management L.P. raised its holdings in shares of Lumentum by 123.3% during the fourth quarter. Rockefeller Capital Management L.P. now owns 4,623 shares of the technology company’s stock valued at $1,704,000 after acquiring an additional 2,553 shares in the last quarter. Hsbc Holdings PLC boosted its holdings in Lumentum by 6,239.0% in the fourth quarter. Hsbc Holdings PLC now owns 194,163 shares of the technology company’s stock valued at $71,724,000 after acquiring an additional 191,100 shares in the last quarter. OCONNOR A Distinct Business Unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new stake in Lumentum in the fourth quarter valued at $1,136,000. Caitong International Asset Management Co. Ltd increased its position in Lumentum by 46,666.7% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 8,418 shares of the technology company’s stock valued at $3,103,000 after purchasing an additional 8,400 shares during the period. Finally, Reflection Asset Management bought a new position in Lumentum in the 4th quarter worth $59,000. 94.05% of the stock is currently owned by institutional investors.
Key Headlines Impacting Lumentum
Here are the key news stories impacting Lumentum this week:
- Positive Sentiment: Stifel highlighted Lumentum’s disclosure at OFC that it sees a long-term quarterly revenue run rate of roughly $2 billion — a concrete signal of sustained demand for its optical components that supports higher revenue visibility. Lumentum leaps after revealing long-term quarterly revenue run rate of $2B at OFC: Stifel
- Positive Sentiment: Market focus on NVIDIA’s AI expansion is boosting Lumentum: coverage notes the company is a direct beneficiary of the AI optics supercycle (NVIDIA has a strategic supply relationship), which increases expected multi-year demand for high-speed lasers and transceivers. Lumentum Soars 12% — and NVIDIA’s AI Boom Is a Big Reason Why
- Positive Sentiment: Rosenblatt reiterated a “buy” and raised its price target to $900, signaling meaningful analyst upside and adding conviction for momentum traders and funds that track analyst sentiment. Benzinga
- Positive Sentiment: Product and demo announcements at OFC (VCSEL-based scale-up demo and broader scale-out/scale-up AI solutions) reinforce Lumentum’s technology leadership for rack- and pod-level AI networking — a commercial catalyst if demos translate into design wins. Lumentum Demonstrates Industry-Leading Technologies and Products for Scale-Out, Scale-Up and Scale-Across AI Infrastructure at OFC 2026 Lumentum Showcases Breakthrough Optical Scale-Up Demonstration at OFC 2026 Using VCSEL Technology
- Positive Sentiment: Partnership demos with Marvell (optical circuit switching) show ecosystem adoption and could accelerate integration into next-gen AI fabrics — another technical/commercial validation. Marvell and Lumentum to Demonstrate Optical Circuit Switching for Next-generation AI Scale-up Infrastructure
- Positive Sentiment: T. Rowe Price warns of multi-year shortages for optical suppliers as AI scale-out accelerates — a supply/demand imbalance that could support pricing and margins for suppliers like Lumentum. “Multi-Year Shortages” Coming for Optical Suppliers, Says T. Rowe Price. Here’s What That Means for LITE and CIEN
- Neutral Sentiment: Company-hosted presentations and transcripts from OFC/earnings (Seeking Alpha slides and transcript) provide detail for investors but are informational unless they reveal new bookings or formal customer commitments. Lumentum Holdings Inc. (LITE) Discusses Illuminating the Networks of Tomorrow and Industry Trends Transcript Slideshow
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.
Further Reading
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