Lumentum (NASDAQ:LITE) Hits New 1-Year High – Here’s Why

Shares of Lumentum Holdings Inc. (NASDAQ:LITE) reached a new 52-week high during trading on Tuesday . The stock traded as high as $688.07 and last traded at $674.73, with a volume of 4487360 shares trading hands. The stock had previously closed at $667.77.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Analysts say a 1.6T optics ramp is arriving ahead of plan, tightening laser supply and shifting sales toward higher‑margin 200G lanes — a structural boost to revenue and gross margins. AI Optics Boom: What 1.6T Ramp Means for the LITE Stock’s Prospect
• Positive Sentiment: Coverage highlights that coherent pluggable optics (CPO) orders are moving from “hype” into contracted backlog — improving revenue visibility and making late‑2027 scale more credible, which supports upside to forward guidance. CPO is Moving From Hype to Backlog for LITE: More Upside Ahead?
• Positive Sentiment: Commentary notes LITE shares have nearly doubled in the past month as AI optics demand, OCS backlog and growing CPO orders drive accelerating revenue and margin expansion — fueling momentum and fresh upward analyst attention. Lumentum Rises 99% in a Month: Are the Shares Still a Buy?
• Positive Sentiment: Macro/sector stories are rotating investor money beyond GPUs into AI infrastructure names; LITE appears on several “AI‑infrastructure” buy lists, increasing institutional interest and multiple expansion potential. Forget Nvidia, This Is the Stock to Buy For the AI Boom’s Next Leg Up
• Neutral Sentiment: Unusual options activity: traders bought roughly 13,981 call contracts (about +15% vs typical daily call volume) — a sign of speculative bullish positioning but not definitive proof of sustained buying.
• Neutral Sentiment: Relative comparisons vs. peers underline LITE’s stronger AI-driven revenue outlook versus some equipment vendors with slumping sales — useful context for positioning but not a direct catalyst. Lumentum vs. Amtech: Which Semiconductor Stock is the Better Buy?
• Negative Sentiment: Risk: the rally has produced a rich valuation and fast price moves; high expectations (and a stretched P/E) leave shares exposed to profit‑taking or any miss versus elevated forecasts.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the stock. Weiss Ratings reissued a “hold (c-)” rating on shares of Lumentum in a report on Monday, December 29th. Stifel Nicolaus boosted their price target on Lumentum to $480.00 and gave the company a “buy” rating in a research note on Wednesday, February 4th. Wolfe Research reissued an “outperform” rating and set a $240.00 price target on shares of Lumentum in a research report on Wednesday, November 5th. Barclays lifted their price objective on Lumentum to $475.00 and gave the company an “equal weight” rating in a report on Thursday, February 5th. Finally, Raymond James Financial downgraded Lumentum from a “strong-buy” rating to an “outperform” rating and set a $220.00 target price for the company. in a research report on Friday, October 31st. Two investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $458.00.

Lumentum Trading Up 1.0%

The firm’s 50-day simple moving average is $425.90 and its 200 day simple moving average is $277.51. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.61 and a quick ratio of 0.45. The firm has a market capitalization of $48.18 billion, a price-to-earnings ratio of 206.97 and a beta of 1.51.

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

Insiders Place Their Bets

In other news, Director Penny Herscher sold 4,849 shares of the stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $535.48, for a total value of $2,596,542.52. Following the completion of the transaction, the director owned 6,057 shares of the company’s stock, valued at approximately $3,243,402.36. This represents a 44.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Vincent Retort sold 45,026 shares of the firm’s stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $591.32, for a total transaction of $26,624,774.32. Following the completion of the sale, the insider owned 102,455 shares in the company, valued at approximately $60,583,690.60. The trade was a 30.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 60,473 shares of company stock valued at $35,186,972. 0.43% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. EverSource Wealth Advisors LLC boosted its holdings in shares of Lumentum by 363.9% during the 3rd quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company’s stock valued at $27,000 after acquiring an additional 131 shares in the last quarter. V Square Quantitative Management LLC bought a new position in Lumentum in the fourth quarter valued at about $28,000. Truvestments Capital LLC boosted its stake in shares of Lumentum by 300.0% during the fourth quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock valued at $28,000 after purchasing an additional 57 shares in the last quarter. Triumph Capital Management acquired a new stake in shares of Lumentum during the fourth quarter valued at about $30,000. Finally, Danske Bank A S bought a new stake in shares of Lumentum during the third quarter worth about $33,000. 94.05% of the stock is currently 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.