Insider Selling: Lumentum (NASDAQ:LITE) SVP Sells 1,366 Shares

Lumentum Holdings Inc. (NASDAQ:LITE) SVP Jae Kim sold 1,366 shares of the company’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $909.43, for a total transaction of $1,242,281.38. Following the sale, the senior vice president directly owned 45,973 shares in the company, valued at approximately $41,809,225.39. This trade represents a 2.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 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.

Lumentum Stock Performance

NASDAQ:LITE traded down $95.59 on Tuesday, reaching $873.31. 5,992,989 shares of the company’s stock were exchanged, compared to its average volume of 5,176,457. The firm has a market cap of $67.94 billion, a price-to-earnings ratio of -10.62 and a beta of 1.50. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.68 and a quick ratio of 1.40. The stock has a fifty day simple moving average of $811.58 and a 200-day simple moving average of $783.10. Lumentum Holdings Inc. has a 52 week low of $111.20 and a 52 week high of $1,085.68.

Lumentum (NASDAQ:LITE) last posted its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.97 by $0.26. The company had revenue of $1.01 billion for the quarter, compared to analyst estimates of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The company’s quarterly revenue was up 109.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, sell-side analysts predict that Lumentum Holdings Inc. will post 16.97 earnings per share for the current year.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on LITE shares. Stifel Nicolaus lifted their price target on Lumentum from $800.00 to $1,100.00 and gave the company a “buy” rating in a research report on Tuesday, May 5th. Zacks Research downgraded Lumentum from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 6th. Citic Securities upped their price target on Lumentum from $620.00 to $1,186.00 in a research report on Monday, May 11th. B. Riley Financial restated a “buy” rating on shares of Lumentum in a research report on Friday, May 1st. Finally, BNP Paribas Exane upped their target price on shares of Lumentum from $1,040.00 to $1,300.00 in a report on Wednesday, May 6th. Thirteen analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, Lumentum has an average rating of “Moderate Buy” and a consensus price target of $1,044.67.

Institutional Investors Weigh In On Lumentum

Hedge funds have recently bought and sold shares of the stock. Advisors Asset Management Inc. lifted its holdings in shares of Lumentum by 36.8% during the 1st quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company’s stock worth $59,000 after acquiring an additional 254 shares during the last quarter. NewEdge Advisors LLC lifted its stake in Lumentum by 109.9% during the first quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company’s stock worth $747,000 after purchasing an additional 6,275 shares during the last quarter. Empowered Funds LLC boosted its holdings in shares of Lumentum by 9.1% in the 1st quarter. Empowered Funds LLC now owns 8,139 shares of the technology company’s stock worth $507,000 after purchasing an additional 680 shares in the last quarter. Hsbc Holdings PLC bought a new position in shares of Lumentum during the 2nd quarter valued at about $298,000. Finally, Arrowstreet Capital Limited Partnership purchased a new position in shares of Lumentum during the 2nd quarter valued at about $1,712,000. 94.05% of the stock is currently owned by institutional investors.

Lumentum News Roundup

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: AI-driven growth remains the bullish case. Lumentum’s exposure to optical components used in AI data-center networks, along with expectations for rising margins and stronger fiscal 2027 earnings, continues to support the long-term growth narrative. Lumentum Stock Is Overvalued at 11.4X P/S: Should You Still Buy It?
• Positive Sentiment: Broker sentiment remains constructive. Analysts collectively assign Lumentum an average “Moderate Buy” rating, providing ongoing support despite the recent volatility. Lumentum Receives Average Rating of Moderate Buy
• Neutral Sentiment: Valuation is a central debate. At approximately 11.4 times sales, Lumentum trades at a demanding multiple after substantial multi-year gains. While a discounted-cash-flow analysis indicates potential upside, market-based valuation measures suggest the stock may already reflect considerable optimism. Lumentum Stock Looks Fully Priced Despite Cash Flow Upside
• Negative Sentiment: Risk aversion is weighing on optics stocks. Reports concerning Anthropic and a Wall Street Journal article have triggered a selloff across AI hardware names, with Lumentum among the affected optics companies. The move indicates investors are taking profits and questioning near-term AI spending or demand expectations. Optics Stocks Drop on Anthropic News
• Negative Sentiment: The recent rally has increased downside sensitivity. Lumentum had rallied alongside Coherent and AXT after indium phosphide price hikes, but the reversal shows how quickly sentiment can change when sector-wide AI concerns emerge. Optics Stocks Rally on Indium Phosphide Price Hikes

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.