Lumentum (NASDAQ:LITE) Stock Price Up 11.1% – Should You Buy?

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price was up 11.1% during mid-day trading on Thursday . The company traded as high as $977.27 and last traded at $964.50. Approximately 5,759,787 shares traded hands during trading, a decline of 4% from the average daily volume of 6,023,493 shares. The stock had previously closed at $868.07.

More Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum is drawing fresh attention from broker-rating upgrades and bullish commentary that tie the company to improving earnings outlooks and AI-driven demand trends. Zacks.com featured highlights include Dow, Arrow Electronics and Lumentum
• Positive Sentiment: Analysts continue to frame Lumentum as a strong AI connectivity play, with relative revenue growth and demand momentum giving it an edge versus peers. LITE vs. AMKR: Which AI Connectivity Stock Has Better Potential?
• Positive Sentiment: The launch of a leveraged ETF tied to Lumentum may increase trading interest and improve short-term market attention around the stock. REX Shares Launches T-REX 2X ASTS (ASUP) & 2X LITE (LITU) ETFs
• Positive Sentiment: Investment case articles continue to emphasize soaring demand for Lumentum’s AI and data-center products, reinforcing the bullish growth narrative. Lumentum Stock Analysis: Buy or Sell?
• Positive Sentiment: Lumentum’s recent earnings beat, strong year-over-year revenue growth, and raised guidance continue to support investor optimism.
• Neutral Sentiment: Several executives disclosed routine insider sales under pre-arranged 10b5-1 plans for tax withholding, which are not necessarily a sign of changing fundamentals but can still weigh on sentiment. SEC filing for Wajid Ali sale
• Negative Sentiment: Some articles note the stock pulling back after a large run as investors took profits in the AI optics space, which can create near-term pressure despite the upbeat long-term story. Lumentum Just Joined the Nasdaq 100. LITE Stock Is Falling Anyway.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on LITE shares. Citigroup lifted their price target on Lumentum from $800.00 to $1,100.00 and gave the company a “buy” rating in a report on Tuesday, April 21st. Stifel Nicolaus raised their target price on Lumentum from $800.00 to $1,100.00 and gave the company a “buy” rating in a research report on Tuesday, May 5th. Barclays boosted their price target on Lumentum from $750.00 to $1,000.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 6th. Zacks Research raised shares of Lumentum from a “hold” rating to a “strong-buy” rating in a report on Wednesday, May 13th. Finally, Northland Securities set a $1,000.00 target price on shares of Lumentum in a research report on Monday, April 20th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $1,012.43.

Lumentum Price Performance

The company has a 50 day moving average of $825.82 and a two-hundred day moving average of $551.93. The firm has a market cap of $75.04 billion, a P/E ratio of 178.61 and a beta of 1.53. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01.

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

Insider Transactions at Lumentum

In related news, insider Vincent Retort sold 3,183 shares of Lumentum stock in a transaction on Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $3,036,422.85. Following the transaction, the insider directly owned 89,563 shares in the company, valued at $85,438,623.85. The trade was a 3.43% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Wajid Ali sold 5,302 shares of the stock in a transaction on Friday, February 27th. The shares were sold at an average price of $691.13, for a total value of $3,664,371.26. Following the completion of the transaction, the chief financial officer owned 66,287 shares of the company’s stock, valued at $45,812,934.31. This trade represents a 7.41% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 36,192 shares of company stock valued at $33,367,059 in the last 90 days. 0.43% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Lumentum

Large investors have recently made changes to their positions in the company. Advisors Asset Management Inc. boosted its stake in Lumentum by 36.8% in the 1st quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company’s stock worth $59,000 after purchasing an additional 254 shares during the period. NewEdge Advisors LLC raised its stake in Lumentum by 109.9% during the 1st quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company’s stock valued at $747,000 after purchasing an additional 6,275 shares during the period. Empowered Funds LLC lifted its holdings in shares of Lumentum by 9.1% in the first quarter. Empowered Funds LLC now owns 8,139 shares of the technology company’s stock valued at $507,000 after purchasing an additional 680 shares in the last quarter. Hsbc Holdings PLC acquired a new stake in shares of Lumentum in the second quarter worth $298,000. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in shares of Lumentum in the second quarter worth $1,712,000. 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.