Lumentum Holdings Inc. (NASDAQ:LITE – Get Free Report) fell 8% during trading on Wednesday after TD Cowen lowered their price target on the stock from $820.00 to $685.00. TD Cowen currently has a hold rating on the stock. Lumentum traded as low as $598.70 and last traded at $626.0560. 9,423,986 shares changed hands during mid-day trading, an increase of 69% from the average session volume of 5,567,427 shares. The stock had previously closed at $680.16.
A number of other brokerages have also recently issued reports on LITE. Deutsche Bank Aktiengesellschaft started coverage on shares of Lumentum in a research report on Monday, August 31st. They set a “buy” rating and a $1,200.00 target price for the company. Sanford C. Bernstein started coverage on shares of Lumentum in a research report on Wednesday, September 30th. They issued an “outperform” rating and a $1,220.00 price target on the stock. Jefferies Financial Group increased their price target on shares of Lumentum from $1,200.00 to $1,250.00 and gave the company a “buy” rating in a research report on Tuesday, October 20th. Stonex Financia raised shares of Lumentum to a “strong-buy” rating in a research note on Monday, October 26th. Finally, Rosenblatt Securities cut their price objective on Lumentum from $1,300.00 to $900.00 and set a “buy” rating for the company in a research report on Tuesday. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Lumentum has a consensus rating of “Moderate Buy” and a consensus price target of $1,046.54.
Read Our Latest Analysis on LITE
Insiders Place Their Bets
In related news, CFO Wajid Ali sold 24,542 shares of the business’s stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $1,048.50, for a total value of $25,732,287.00. Following the completion of the transaction, the chief financial officer owned 75,074 shares of the company’s stock, valued at approximately $78,715,089. The trade was a 24.64% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 307 shares of the company’s stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $945.00, for a total transaction of $290,115.00. Following the completion of the transaction, the insider owned 108,320 shares in the company, valued at approximately $102,362,400. This trade represents a 0.28% 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 ninety days, insiders have sold 94,496 shares of company stock worth $85,978,498. Corporate insiders own 0.28% of the company’s stock.
More Lumentum News
Here are the key news stories impacting Lumentum this week:
- Positive Sentiment: Lumentum’s Q2 fiscal 2027 outlook exceeded consensus: the company guided to adjusted EPS of $5.90–$6.20 and revenue of $1.6 billion, versus estimates of $4.98 and $1.5 billion. Article: MRVL’s Proposed LITE Buyout Suggests Long-Term AI Infrastructure Boom
- Positive Sentiment: The proposed all-stock Marvell deal could combine Lumentum’s optical technology with Marvell’s chips and networking products, positioning the combined company to benefit from AI data-center demand and potential revenue and margin synergies. Nvidia’s CEO reportedly approved the transaction. Article: Marvell’s Deal to Acquire Lumentum Could Be a Game Changer for the Stock
- Neutral Sentiment: Analyst views are mixed: some firms cut price targets, while Susquehanna and Rosenblatt maintained positive ratings. The revisions reflect uncertainty about the merger as well as optimism about AI-optics demand. Article: Lumentum Stock Fair Value Edges Lower
- Negative Sentiment: Investors have criticized the proposed $115 billion all-stock transaction, and the decline in both companies’ share prices has reduced the offer’s implied value. Concerns include dilution, deal execution and limited upside for Lumentum holders receiving 4.5 Marvell shares per LITE share. Article: Marvell and Lumentum Have Lost $91 Billion in Market Value as Merger Doubts Mount
- Negative Sentiment: Law firms are investigating whether Lumentum’s sale process and terms are fair to shareholders, adding legal uncertainty to the deal. Article: Shareholder Alert on Lumentum Investigation
Hedge Funds Weigh In On Lumentum
A number of institutional investors have recently modified their holdings of the company. AEGON ASSET MANAGEMENT UK Plc acquired a new position in Lumentum in the third quarter worth about $7,971,000. Vestor Capital LLC bought a new stake in Lumentum in the third quarter valued at about $13,401,000. Retirement Systems of Alabama increased its holdings in Lumentum by 13.7% in the third quarter. Retirement Systems of Alabama now owns 18,579 shares of the technology company’s stock valued at $18,045,000 after buying an additional 2,236 shares during the last quarter. Clear Wave Wealth Management LLC raised its stake in Lumentum by 25.2% during the third quarter. Clear Wave Wealth Management LLC now owns 641 shares of the technology company’s stock valued at $623,000 after buying an additional 129 shares in the last quarter. Finally, Fulcrum Asset Management LLP raised its stake in Lumentum by 500.4% during the third quarter. Fulcrum Asset Management LLP now owns 7,541 shares of the technology company’s stock valued at $7,341,000 after buying an additional 6,285 shares in the last quarter. Institutional investors and hedge funds own 94.05% of the company’s stock.
Lumentum Price Performance
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 company has a 50 day simple moving average of $916.26 and a 200-day simple moving average of $798.35. The stock has a market cap of $56.71 billion, a price-to-earnings ratio of -7.95 and a beta of 1.64.
Lumentum (NASDAQ:LITE – Get Free Report) last issued its earnings results on Monday, November 2nd. The technology company reported $4.57 EPS for the quarter, topping the consensus estimate of $4.22 by $0.35. Lumentum had a positive return on equity of 33.33% and a negative net margin of 175.82%. The company had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.26 billion. During the same quarter last year, the firm earned $1.10 EPS. The business’s revenue was up 136.5% on a year-over-year basis. As a group, research analysts anticipate that Lumentum Holdings Inc. will post 19.79 EPS for the current fiscal year.
About Lumentum
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.
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