Evercore Upgrades Lumentum (NASDAQ:LITE) to Strong-Buy

Lumentum (NASDAQ:LITE) was upgraded by analysts at Evercore to a “strong-buy” rating in a note issued to investors on Monday, Zacks reports.

Several other equities analysts have also weighed in on LITE. Bank of America decreased their target price on shares of Lumentum from $1,100.00 to $1,000.00 and set a “neutral” rating on the stock in a report on Wednesday, August 12th. Raymond James Financial restated an “outperform” rating and set a $1,036.00 price target on shares of Lumentum in a report on Wednesday, August 12th. Stifel Nicolaus lifted their price target on shares of Lumentum from $800.00 to $1,100.00 and gave the company a “buy” rating in a research report on Tuesday, May 5th. Morgan Stanley upped their price objective on Lumentum from $900.00 to $1,000.00 and gave the company an “equal weight” rating in a report on Wednesday, August 12th. Finally, TD Cowen increased their price objective on Lumentum from $800.00 to $820.00 and gave the stock a “hold” rating in a research report on Wednesday, August 12th. Two research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $1,053.83.

Lumentum Stock Up 2.2%

NASDAQ LITE opened at $914.76 on Monday. Lumentum has a 52 week low of $125.00 and a 52 week high of $1,085.68. The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01. The business’s fifty day simple moving average is $812.24 and its 200-day simple moving average is $809.18. The firm has a market cap of $82.05 billion, a PE ratio of -11.13 and a beta of 1.50.

Lumentum (NASDAQ:LITE) last announced its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, beating the consensus estimate of $2.97 by $0.26. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The firm had revenue of $1.01 billion for the quarter, compared to analysts’ expectations of $987.70 million. During the same quarter in the previous year, the company posted $0.88 EPS. The company’s revenue was up 109.3% compared to the same quarter last year. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, equities analysts anticipate that Lumentum will post 19.76 earnings per share for the current year.

Insider Activity at Lumentum

In other Lumentum news, CEO Michael E. Hurlston sold 548 shares of the business’s stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $958.66, for a total value of $525,345.68. Following the sale, the chief executive officer owned 186,951 shares of the company’s stock, valued at $179,222,445.66. The trade was a 0.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, SVP Jae Kim sold 12,000 shares of the company’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $852.58, for a total value of $10,230,960.00. Following the transaction, the senior vice president owned 37,804 shares in the company, valued at $32,230,934.32. This trade represents a 24.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 63,147 shares of company stock worth $54,032,636. Company insiders own 0.43% of the company’s stock.

Institutional Investors Weigh In On Lumentum

A number of institutional investors have recently modified their holdings of the company. California State Teachers Retirement System raised its holdings in shares of Lumentum by 112,343.2% in the 2nd quarter. California State Teachers Retirement System now owns 92,237,160 shares of the technology company’s stock valued at $79,145,018,000 after buying an additional 92,155,130 shares during the period. Jupiter Topco LLC acquired a new position in Lumentum during the 2nd quarter worth about $1,621,396,000. Arrowstreet Capital Limited Partnership boosted its holdings in Lumentum by 18.7% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company’s stock valued at $683,661,000 after acquiring an additional 291,591 shares during the period. Geode Capital Management LLC boosted its holdings in Lumentum by 9.6% during the 4th quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company’s stock valued at $521,563,000 after acquiring an additional 123,265 shares during the period. Finally, Situational Awareness LP grew its position in Lumentum by 210.9% in the 4th quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock valued at $478,577,000 after acquiring an additional 880,800 shares in the last quarter. 94.05% of the stock is owned by institutional investors and hedge funds.

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.