Lumentum (NASDAQ:LITE) Downgraded by Zacks Research to “Hold”

Lumentum (NASDAQ:LITE) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a report issued on Monday, Zacks reports.

Several other analysts have also recently weighed in on the stock. JPMorgan Chase & Co. upped their price objective on shares of Lumentum from $1,165.00 to $1,280.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 12th. Stifel Nicolaus boosted their target price on Lumentum from $1,100.00 to $1,232.00 and gave the stock a “buy” rating in a report on Monday, October 5th. TD Cowen raised their price target on Lumentum from $800.00 to $820.00 and gave the company a “hold” rating in a report on Wednesday, August 12th. Raymond James Financial reaffirmed an “outperform” rating and set a $1,036.00 price target on shares of Lumentum in a report on Wednesday, August 12th. Finally, Deutsche Bank Aktiengesellschaft initiated coverage on Lumentum in a research report on Monday, August 31st. They issued a “buy” rating and a $1,200.00 price objective for the company. Sixteen research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $1,078.75.

Lumentum Stock Performance

Shares of NASDAQ:LITE opened at $987.99 on Monday. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.68 and a quick ratio of 1.40. The business’s fifty day moving average price is $930.77 and its two-hundred day moving average price is $873.79. Lumentum has a fifty-two week low of $152.54 and a fifty-two week high of $1,143.00. The stock has a market capitalization of $89.49 billion, a price-to-earnings ratio of -12.02 and a beta of 1.53.

Lumentum (NASDAQ:LITE) last issued its quarterly earnings data on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.97 by $0.26. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%. The company had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $987.70 million. During the same period last year, the business earned $0.88 earnings per share. The business’s revenue was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, analysts predict that Lumentum will post 19.79 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Michael Hurlston sold 548 shares of the company’s stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $958.66, for a total transaction of $525,345.68. Following the transaction, the chief executive officer directly owned 186,951 shares in the company, valued at approximately $179,222,445.66. This represents 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 accessible through this link. Also, insider Vincent Retort sold 38,663 shares of the company’s stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $852.59, for a total transaction of $32,963,687.17. Following the transaction, the insider owned 78,440 shares in the company, valued at $66,877,159.60. The trade was a 33.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 94,496 shares of company stock valued at $85,978,498. Insiders own 0.28% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. First Citizens Bank & Trust Co. bought a new position in Lumentum in the 3rd quarter valued at $1,323,000. Q Fund Management Hong Kong Ltd raised its position in shares of Lumentum by 827.7% during the third quarter. Q Fund Management Hong Kong Ltd now owns 8,720 shares of the technology company’s stock worth $8,469,000 after acquiring an additional 7,780 shares during the last quarter. Krilogy Financial LLC lifted its stake in shares of Lumentum by 3.7% during the third quarter. Krilogy Financial LLC now owns 1,529 shares of the technology company’s stock valued at $1,522,000 after acquiring an additional 55 shares during the period. Mechanics Bank Trust Department acquired a new position in shares of Lumentum during the third quarter valued at $846,000. Finally, Kieckhefer Group LLC boosted its holdings in Lumentum by 0.8% in the third quarter. Kieckhefer Group LLC now owns 3,191 shares of the technology company’s stock valued at $3,099,000 after acquiring an additional 25 shares during the last quarter. Institutional investors and hedge funds own 94.05% of the company’s stock.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum’s backlog has crossed a significant threshold, with demand reportedly exceeding supply and orders booked well into 2029. Supporters argue that this visibility strengthens the company’s outlook and may justify buying the recent pullback. Lumentum’s Massive Backlog and Demand Justify Buying at Today’s Price
• Positive Sentiment: Lumentum, Astera Labs, and Corning demonstrated a PCIe-over-optics platform for AI rack-scale systems at the OCP Global Summit. The technology highlights Lumentum’s role in next-generation data-center connectivity, while management said optical-component demand is largely committed through 2029. Lumentum, Astera Labs, and Corning Demonstrate PCIe over Optics
• Positive Sentiment: Several analysts and commentators remain bullish, citing potential free-cash-flow expansion, approximately $1.1 billion in net cash, strong AI exposure, and the possibility of substantial fiscal 2027 revenue growth. Lumentum has also been identified as a potential buy-on-the-dip AI stock. Lumentum: The Free Cash Flow Inflection I’m Betting On
• Neutral Sentiment: Analyst opinions are mixed. While some see significant long-term upside from AI connectivity, others are more cautious following Lumentum’s sharp rally and the stock’s demanding valuation. Analysts’ Opinions Are Mixed
• Negative Sentiment: The immediate catalyst is sector-wide selling in optical stocks. After gaining roughly 164% in 2026, Lumentum has experienced a recent pullback as investors take profits and question whether AI infrastructure spending can remain at current levels. Optical Networking Selloff and AI Funding Fears
• Negative Sentiment: The selloff has been especially pronounced even though Lumentum’s capacity is reportedly sold out, suggesting that valuation and concerns about future demand—not current order visibility—are driving the stock lower. Lumentum Falls as Optics Selloff Hits Hardest

Lumentum Company Profile

Lumentum Holdings Inc is a photonics and optical technology company that develops and manufactures products used to transmit, process and manage light. Its solutions support communications networks, data centers, cloud computing infrastructure, industrial applications, and other technology markets that rely on high-speed optical connectivity and precision lasers.

The company’s product portfolio includes optical components and modules for telecommunications and networking, lasers and laser systems, optical amplifiers, wavelength-management products, and photonic subsystems.