Lumentum (NASDAQ:LITE) Stock Price Down 3.1% Following Insider Selling

Lumentum Holdings Inc. (NASDAQ:LITE) dropped 3.1% during trading on Friday following insider selling activity. The company traded as low as $923.00 and last traded at $970.70. Approximately 10,084,946 shares changed hands during trading, an increase of 67% from the average daily volume of 6,032,634 shares. The stock had previously closed at $1,001.81.

Specifically, Director Pamela Fletcher sold 1,578 shares of Lumentum stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $940.82, for a total value of $1,484,613.96. Following the transaction, the director directly owned 7,406 shares of the company’s stock, valued at $6,967,712.92. The trade was a 17.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Pamela Fletcher sold 1,577 shares of the business’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $1,003.38, for a total value of $1,582,330.26. Following the completion of the transaction, the director directly owned 8,984 shares in the company, valued at approximately $9,014,365.92. This trade represents a 14.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In other Lumentum news, SVP Jae Kim sold 1,933 shares of the business’s stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $950.99, for a total value of $1,838,263.67. Following the transaction, the senior vice president directly owned 35,114 shares of the company’s stock, valued at approximately $33,393,062.86. The trade was a 5.22% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on the company. BNP Paribas Exane boosted their price target on Lumentum from $1,040.00 to $1,300.00 in a research note on Wednesday, May 6th. Raymond James Financial reissued an “outperform” rating and issued a $1,014.00 price target on shares of Lumentum in a research note on Wednesday, May 6th. Barclays boosted their price target on Lumentum from $750.00 to $1,000.00 and gave the company an “equal weight” rating in a research note on Wednesday, May 6th. Mizuho set a $1,100.00 price target on Lumentum in a research note on Wednesday, May 6th. Finally, Loop Capital boosted their price target on Lumentum from $900.00 to $1,400.00 and gave the company a “buy” rating in a research note on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $1,012.43.

Lumentum News Roundup

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Zacks Research upgraded Lumentum (LITE) from hold to strong-buy, signaling improved earnings outlook and stronger near-term sentiment. Tickerreport.com
• Positive Sentiment: Investors are reacting to reports of surging AI optics demand, with Lumentum’s components business reportedly sold out through 2028 and the company planning to expand manufacturing capacity, which supports a higher valuation. Lumentum’s AI Optics Demand And NVIDIA Deal Reshape Valuation Debate
• Positive Sentiment: The stock also benefited from broader momentum-stock and analyst coverage that placed LITE on Zacks’ Rank #1 Strong Buy list, adding to bullish trading sentiment. Best Momentum Stocks to Buy for May 14th
• Positive Sentiment: Multiple articles highlighted accelerating growth in Lumentum’s components business, particularly around AI optics and hyperscale data-center demand, reinforcing expectations for continued revenue strength. Lumentum’s Components Business Accelerates: More Upside Ahead?
• Neutral Sentiment: Investor attention is also building around an upcoming May 18 event, but the articles provided do not specify a concrete new catalyst yet. Dear Lumentum stock fans, mark your calendars for May 18

Lumentum Price Performance

The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01. The business has a 50-day moving average price of $809.96 and a two-hundred day moving average price of $535.23. The company has a market capitalization of $75.52 billion, a price-to-earnings ratio of 179.76 and a beta of 1.53.

Lumentum (NASDAQ:LITE) last issued its earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, topping analysts’ consensus estimates of $2.27 by $0.10. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The company had revenue of $808.40 million for the quarter, compared to analyst estimates of $810.21 million. During the same period in the prior year, the firm earned $0.57 earnings per share. Lumentum’s revenue for the quarter was up 90.1% on a year-over-year basis. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, research analysts anticipate that Lumentum Holdings Inc. will post 6.49 EPS for the current year.

Hedge Funds Weigh In On Lumentum

A number of institutional investors have recently modified their holdings of the company. Federated Hermes Inc. raised its position in Lumentum by 7,168.8% in the 3rd quarter. Federated Hermes Inc. now owns 362,352 shares of the technology company’s stock valued at $58,958,000 after buying an additional 357,367 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new position in Lumentum in the 4th quarter valued at $6,755,000. Headwater Capital Co Ltd bought a new position in Lumentum in the 3rd quarter valued at $20,339,000. Estate Counselors LLC bought a new position in Lumentum in the 4th quarter valued at $4,239,000. Finally, China Universal Asset Management Co. Ltd. bought a new position in Lumentum in the 3rd quarter valued at $1,383,000. 94.05% of the stock is 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.