Lumentum (NASDAQ:LITE) Trading 7.3% Higher – Here’s Why

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price traded up 7.3% during mid-day trading on Tuesday . The company traded as high as $703.43 and last traded at $702.76. 6,045,075 shares were traded during mid-day trading, an increase of 1% from the average session volume of 5,975,559 shares. The stock had previously closed at $654.79.

Analyst Upgrades and Downgrades

LITE has been the subject of several recent research reports. UBS Group lifted their target price on shares of Lumentum from $215.00 to $455.00 and gave the stock a “neutral” rating in a research note on Wednesday, February 4th. Stifel Nicolaus upped their price target on Lumentum to $800.00 and gave the company a “buy” rating in a research report on Monday, March 2nd. Morgan Stanley increased their price target on shares of Lumentum to $595.00 and gave the stock an “equal weight” rating in a report on Wednesday, March 18th. Northland Securities set a $350.00 target price on shares of Lumentum in a report on Wednesday, December 3rd. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Lumentum in a report on Monday, December 29th. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $575.06.

Lumentum Price Performance

The business’s fifty day moving average price is $603.71 and its 200-day moving average price is $382.13. The company has a market capitalization of $58.92 billion, a P/E ratio of 251.80 and a beta of 1.38. The company has a current ratio of 0.61, a quick ratio of 0.45 and a debt-to-equity ratio of 0.06.

Lumentum (NASDAQ:LITE) last released its quarterly earnings results on Tuesday, February 3rd. The technology company reported $1.67 earnings per share 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 the consensus estimate of $646.74 million. During the same quarter last year, the business posted $0.42 earnings per share. The company’s revenue for the quarter was up 65.5% on a year-over-year basis. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. As a group, sell-side analysts predict that Lumentum Holdings Inc. will post 0.03 earnings per share for the current fiscal year.

Insider Buying and Selling at Lumentum

In other Lumentum news, CFO Wajid Ali sold 5,302 shares of the company’s stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $691.13, for a total transaction of $3,664,371.26. Following the completion of the sale, the chief financial officer directly owned 66,287 shares in the company, valued at $45,812,934.31. This represents a 7.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Vincent Retort sold 45,026 shares of the firm’s stock in a transaction dated Thursday, February 12th. The shares were sold at an average price of $591.32, for a total value of $26,624,774.32. Following the transaction, the insider directly owned 102,455 shares in the company, valued at $60,583,690.60. This trade represents a 30.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 65,775 shares of company stock valued at $38,851,343 over the last ninety days. Insiders own 0.43% of the company’s stock.

Institutional Investors Weigh In On Lumentum

Several institutional investors have recently added to or reduced their stakes in LITE. Advisors Asset Management Inc. increased its position in shares of Lumentum by 36.8% in the first quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company’s stock valued at $59,000 after acquiring an additional 254 shares during the period. NewEdge Advisors LLC boosted its holdings in shares of Lumentum by 109.9% during the first quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company’s stock worth $747,000 after purchasing an additional 6,275 shares during the period. Empowered Funds LLC grew its stake in shares of Lumentum by 9.1% in the first quarter. Empowered Funds LLC now owns 8,139 shares of the technology company’s stock worth $507,000 after purchasing an additional 680 shares during the last quarter. Prudential Financial Inc. grew its stake in shares of Lumentum by 21.3% in the second quarter. Prudential Financial Inc. now owns 7,327 shares of the technology company’s stock worth $697,000 after purchasing an additional 1,288 shares during the last quarter. Finally, Quadrant Capital Group LLC increased its holdings in Lumentum by 433.5% during the 2nd quarter. Quadrant Capital Group LLC now owns 4,391 shares of the technology company’s stock valued at $417,000 after purchasing an additional 3,568 shares during the period. Hedge funds and other institutional investors own 94.05% of the company’s stock.

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.