Lumentum (NASDAQ:LITE) Trading Up 4.3% – Here’s Why

Lumentum Holdings Inc. (NASDAQ:LITE) shares traded up 4.3% during trading on Thursday . The company traded as high as $890.80 and last traded at $889.59. 4,627,964 shares traded hands during trading, a decline of 23% from the average session volume of 6,024,652 shares. The stock had previously closed at $853.26.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on LITE shares. Rosenblatt Securities upped their price objective on Lumentum from $900.00 to $1,300.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. Northland Securities raised their target price on Lumentum from $1,000.00 to $1,200.00 and gave the stock an “outperform” rating in a research report on Wednesday, June 3rd. Susquehanna boosted their price target on Lumentum from $550.00 to $1,100.00 and gave the company a “positive” rating in a research note on Monday, April 20th. Barclays upped their price target on Lumentum from $750.00 to $1,000.00 and gave the company an “equal weight” rating in a research report on Wednesday, May 6th. Finally, BNP Paribas Exane increased their price objective on Lumentum from $1,040.00 to $1,300.00 in a research note on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $1,021.95.

Lumentum Price Performance

The stock has a market capitalization of $69.21 billion, a P/E ratio of 164.74 and a beta of 1.47. The company’s 50 day simple moving average is $890.77 and its two-hundred day simple moving average is $623.20. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97.

Lumentum (NASDAQ:LITE) last posted its earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.27 by $0.10. The company had revenue of $808.40 million during the quarter, compared to analysts’ expectations of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. Lumentum’s quarterly revenue was up 90.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, equities analysts expect that Lumentum Holdings Inc. will post 6.49 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Vincent Retort sold 3,183 shares of the firm’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $3,036,422.85. Following the completion of the sale, the insider directly owned 89,563 shares in the company, valued at approximately $85,438,623.85. This trade represents a 3.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. 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, Director Ian Small sold 4,954 shares of Lumentum stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $868.07, for a total value of $4,300,418.78. Following the completion of the transaction, the director directly owned 21,008 shares of the company’s stock, valued at $18,236,414.56. This represents a 19.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 41,260 shares of company stock valued at $38,859,220. Insiders own 0.43% of the company’s stock.

Institutional Investors Weigh In On Lumentum

Several hedge funds and other institutional investors have recently added to or reduced their stakes in LITE. Advisors Asset Management Inc. lifted its position in shares of Lumentum by 36.8% during the first quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company’s stock worth $59,000 after purchasing an additional 254 shares in the last quarter. NewEdge Advisors LLC increased its holdings in shares of Lumentum by 109.9% in the first quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company’s stock valued at $747,000 after purchasing an additional 6,275 shares in the last quarter. Empowered Funds LLC increased its holdings 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 valued at $507,000 after purchasing an additional 680 shares in the last quarter. Hsbc Holdings PLC bought a new position in Lumentum in the 2nd quarter worth approximately $298,000. Finally, Arrowstreet Capital Limited Partnership bought a new position in Lumentum in the 2nd quarter worth approximately $1,712,000. Institutional investors and hedge funds 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.