Lumentum (NASDAQ:LITE) Stock Jumps 3.4% – Should You Buy?

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price was up 3.4% during mid-day trading on Wednesday. The stock traded as high as $878.90 and last traded at $850.70. 3,703,778 shares changed hands during trading, a decline of 32% from the average session volume of 5,473,924 shares. The stock had previously closed at $822.51.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the company. Evercore started coverage on Lumentum in a research report on Monday, August 31st. They issued an “outperform” rating and a $1,100.00 price target for the company. Wolfe Research reaffirmed an “outperform” rating on shares of Lumentum in a report on Friday, August 21st. Bank of America cut their price objective 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. Jefferies Financial Group upped their target price on shares of Lumentum from $1,200.00 to $1,250.00 and gave the stock a “buy” rating in a research note on Tuesday. Finally, UBS Group set a $820.00 target price on shares of Lumentum in a report on Wednesday, August 12th. Sixteen equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $1,080.83.

Lumentum Stock Performance

The firm has a market cap of $77.06 billion, a PE ratio of -10.35 and a beta of 1.53. The company has a 50-day simple moving average of $931.93 and a two-hundred day simple moving average of $878.96. The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE) last posted 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. The company had revenue of $1.01 billion during the quarter, compared to analyst estimates of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The firm’s revenue for the quarter was up 109.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, equities research analysts forecast that Lumentum Holdings Inc. will post 19.79 earnings per share for the current year.

Insider Activity

In other Lumentum news, insider Yuen Wupen sold 307 shares of the firm’s stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $945.00, for a total value of $290,115.00. Following the completion of the transaction, the insider owned 108,320 shares in the company, valued at $102,362,400. This trade represents a 0.28% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Wajid Ali sold 24,542 shares of the stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $1,048.50, for a total transaction of $25,732,287.00. Following the completion of the sale, the chief financial officer directly owned 75,074 shares in the company, valued at approximately $78,715,089. The trade was a 24.64% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 94,496 shares of company stock valued at $85,978,498. 0.28% of the stock is currently owned by insiders.

Institutional Trading of Lumentum

A number of large investors have recently modified their holdings of the business. Crossmark Global Holdings Inc. grew its position in shares of Lumentum by 14.3% in the 3rd quarter. Crossmark Global Holdings Inc. now owns 3,661 shares of the technology company’s stock worth $3,556,000 after buying an additional 459 shares during the period. Range Financial Group LLC lifted its position in Lumentum by 5.8% during the 3rd quarter. Range Financial Group LLC now owns 4,438 shares of the technology company’s stock valued at $4,310,000 after acquiring an additional 245 shares during the period. Physician Wealth Advisors Inc. boosted its position in shares of Lumentum by 240.0% in the 3rd quarter. Physician Wealth Advisors Inc. now owns 85 shares of the technology company’s stock worth $83,000 after purchasing an additional 60 shares in the last quarter. Pinnacle Associates Ltd. grew its stake in shares of Lumentum by 4.7% in the 3rd quarter. Pinnacle Associates Ltd. now owns 54,132 shares of the technology company’s stock worth $52,576,000 after buying an additional 2,440 shares during the last quarter. Finally, Nisa Investment Advisors LLC grew its stake in shares of Lumentum by 6.8% in the 3rd quarter. Nisa Investment Advisors LLC now owns 7,494 shares of the technology company’s stock worth $7,279,000 after buying an additional 479 shares during the last quarter. Institutional investors own 94.05% of the company’s stock.

Lumentum Company Profile

Lumentum Holdings Inc is a technology company that designs and manufactures optical and photonic products for communications networks, industrial applications, and consumer electronics. Its portfolio includes optical components, modules, and subsystems used in fiber-optic networks, data centers, cloud computing infrastructure, telecommunications equipment, and high-speed connectivity systems.

The company also develops laser products for applications such as industrial processing, sensing, three-dimensional imaging, and other specialized commercial and consumer uses.