Lumentum (NASDAQ:LITE) Sets New 52-Week High – What’s Next?

Lumentum Holdings Inc. (NASDAQ:LITE) hit a new 52-week high on Thursday . The stock traded as high as $603.83 and last traded at $590.4350, with a volume of 1384769 shares changing hands. The stock had previously closed at $574.11.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Beat-and-raise quarter: Lumentum reported a large beat — non-GAAP EPS of $1.67 and revenue roughly $665.5M (up ~65% YoY) with an expanding optical circuit switch backlog and raised forward expectations, supporting the growth narrative for AI/data-center optics. Strong Earnings Momentum and Investor Optimism Lifted Lumentum Holdings (LITE) in Q4
• Positive Sentiment: AI/optics tailwinds and bullish media coverage are amplifying enthusiasm: multiple outlets highlight Lumentum as a key supplier for ultra-high-speed AI data links and project continued rapid revenue/earnings growth. Prediction: This Could Be the Best-Performing AI Chip Stock of 2026
• Positive Sentiment: Momentum trade and price action: LITE recently rallied on optics/AI rotation (coverage notes a near‑8% lift during the AI optics boom), which has attracted short‑term momentum buyers. Lumentum Leaps Nearly 8% During AI Optics Boom
• Neutral Sentiment: Analyst view vs. valuation: Analysts remain generally bullish on fundamentals and project sharp earnings growth, but some coverage flags valuation concerns — consensus targets in some places are below the current share price, suggesting limited upside for some investors. 3 High-Growth Unknowns in Photonics That Are Vital for AI
• Neutral Sentiment: Operational notes: Coverage mentions strong backlog but also some manufacturing/backend bottlenecks to navigate — a potential timing risk for shipment/gross-margin improvement. 3 High-Growth Unknowns in Photonics That Are Vital for AI
• Negative Sentiment: Large insider selling: Director Penny Herscher sold 4,000 shares (~$2.39M) on Feb. 12; the SEC Form 4 is filed. Insider sales of this size after a big run can signal profit-taking and increase selling pressure. Penny Herscher Form 4
• Negative Sentiment: Material insider sale by senior insider: Vincent Retort sold 45,026 shares (~$26.6M) on Feb. 12, reducing his holdings by ~30%. That large, public sale is likely contributing to downward pressure and investor caution. Vincent Retort Form 4

Analyst Ratings Changes

A number of research analysts recently commented on LITE shares. B. Riley Financial raised Lumentum from a “neutral” rating to a “buy” rating and boosted their price target for the company from $147.00 to $526.00 in a research note on Wednesday, February 4th. JPMorgan Chase & Co. raised their target price on shares of Lumentum to $565.00 and gave the company an “overweight” rating in a report on Wednesday, February 4th. B. Riley Securities raised shares of Lumentum from a “neutral” rating to a “buy” rating and upped their price target for the stock from $147.00 to $526.00 in a report on Wednesday, February 4th. Weiss Ratings restated a “hold (c-)” rating on shares of Lumentum in a research report on Monday, December 29th. Finally, Susquehanna upped their target price on Lumentum to $550.00 and gave the stock a “positive” rating in a research note on Wednesday, February 4th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $444.94.

Lumentum Trading Down 3.6%

The business’s 50 day simple moving average is $393.19 and its two-hundred day simple moving average is $253.80. The stock has a market cap of $40.18 billion, a P/E ratio of 172.62 and a beta of 1.51. The company has a quick ratio of 0.45, a current ratio of 0.61 and a debt-to-equity ratio of 0.06.

Lumentum (NASDAQ:LITE) last announced its quarterly earnings results on Tuesday, February 3rd. The technology company reported $1.67 EPS for the quarter, beating analysts’ consensus estimates of $1.41 by $0.26. The company had revenue of $665.50 million during the quarter, compared to analysts’ expectations of $646.74 million. Lumentum had a return on equity of 17.27% and a net margin of 11.95%.Lumentum’s revenue was up 65.5% compared to the same quarter last year. During the same period in the prior year, the company earned $0.42 EPS. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. As a group, analysts expect that Lumentum Holdings Inc. will post 0.03 EPS for the current year.

Insider Activity

In other news, insider Yuen Wupen sold 822 shares of the business’s stock in a transaction dated Wednesday, November 19th. The stock was sold at an average price of $258.96, for a total transaction of $212,865.12. Following the sale, the insider directly owned 95,077 shares in the company, valued at approximately $24,621,139.92. The trade was a 0.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, SVP Jae Kim sold 170 shares of the firm’s stock in a transaction that occurred on Tuesday, November 18th. The shares were sold at an average price of $246.00, for a total transaction of $41,820.00. Following the completion of the transaction, the senior vice president owned 38,400 shares of the company’s stock, valued at approximately $9,446,400. This trade represents a 0.44% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 61,055 shares of company stock valued at $33,457,956. 0.43% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Lumentum

A number of hedge funds have recently modified their holdings of LITE. EverSource Wealth Advisors LLC increased its holdings in Lumentum by 363.9% in the third quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company’s stock valued at $27,000 after purchasing an additional 131 shares during the period. V Square Quantitative Management LLC bought a new stake in shares of Lumentum in the 4th quarter valued at about $28,000. Triumph Capital Management acquired a new stake in shares of Lumentum in the fourth quarter valued at about $30,000. Danske Bank A S bought a new position in shares of Lumentum during the third quarter worth about $33,000. Finally, Harbour Investments Inc. lifted its stake in shares of Lumentum by 675.0% in the fourth quarter. Harbour Investments Inc. now owns 93 shares of the technology company’s stock worth $34,000 after acquiring an additional 81 shares during the period. Institutional investors and hedge funds own 94.05% of the company’s stock.

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.