Lumentum (NASDAQ:LITE) Shares Down 8.5% – Here’s What Happened

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price dropped 8.5% during mid-day trading on Friday . The company traded as low as $755.03 and last traded at $762.99. Approximately 3,637,947 shares changed hands during mid-day trading, a decline of 37% from the average session volume of 5,766,834 shares. The stock had previously closed at $833.64.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on LITE shares. Zacks Research downgraded shares of Lumentum from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 6th. B. Riley Financial restated a “buy” rating on shares of Lumentum in a report on Friday, May 1st. Susquehanna raised their price objective on Lumentum from $550.00 to $1,100.00 and gave the company a “positive” rating in a research note on Monday, April 20th. UBS Group lifted their price objective on Lumentum from $455.00 to $960.00 and gave the stock a “neutral” rating in a report on Wednesday, May 6th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Lumentum in a research report on Friday, July 17th. Fourteen equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $1,012.67.

Lumentum Stock Performance

The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01. The stock’s 50 day moving average price is $848.84 and its two-hundred day moving average price is $725.62. The firm has a market capitalization of $59.36 billion, a PE ratio of 141.29 and a beta of 1.48.

Lumentum (NASDAQ:LITE) last issued its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.27 by $0.10. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The firm had revenue of $808.40 million during the quarter, compared to the consensus estimate of $810.21 million. During the same period in the previous year, the firm posted $0.57 EPS. The company’s quarterly revenue was up 90.1% compared to the same quarter last year. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, equities analysts expect that Lumentum Holdings Inc. will post 6.42 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Brian Lillie sold 11,951 shares of the stock in a transaction on Monday, May 11th. The stock was sold at an average price of $981.64, for a total transaction of $11,731,579.64. Following the sale, the director owned 13,959 shares of the company’s stock, valued at $13,702,712.76. This trade represents a 46.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 3,210 shares of Lumentum stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $3,062,179.50. Following the sale, the insider owned 81,488 shares of the company’s stock, valued at approximately $77,735,477.60. This represents a 3.79% decrease in their position. The SEC filing for this sale provides additional information. 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. Over the last 90 days, insiders sold 41,260 shares of company stock valued at $38,859,220. Company insiders own 0.43% of the company’s stock.

Institutional Investors Weigh In On Lumentum

Hedge funds have recently modified their holdings of the company. Arrowstreet Capital Limited Partnership raised its position in shares of Lumentum by 18.7% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company’s stock valued at $683,661,000 after buying an additional 291,591 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of Lumentum by 9.6% during the fourth quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company’s stock valued at $521,563,000 after buying an additional 123,265 shares during the period. Situational Awareness LP boosted its position in Lumentum by 210.9% during the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock worth $478,577,000 after acquiring an additional 880,800 shares during the last quarter. Norges Bank acquired a new stake in Lumentum during the fourth quarter worth approximately $474,495,000. Finally, Value Aligned Research Advisors LLC purchased a new stake in Lumentum in the 4th quarter worth approximately $432,062,000. 94.05% of the stock is owned by institutional investors and hedge funds.

Lumentum Company Profile

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.