Lumentum Holdings Inc. (NASDAQ:LITE – Get Free Report) shares shot up 5.7% on Friday. The stock traded as high as $559.00 and last traded at $538.59. Approximately 5,366,445 shares changed hands during trading, a decline of 4% from the average session volume of 5,589,168 shares. The stock had previously closed at $509.70.
Key Stories Impacting Lumentum
Here are the key news stories impacting Lumentum this week:
- Positive Sentiment: Some commentary sees Lumentum as potentially undervalued after Marvell agreed to acquire it, arguing the deal highlights demand for optical interconnects—a potential bottleneck in AI data centers. Lumentum’s shares also rose alongside a broader recovery in optical stocks. Article: Lumentum Holdings Could Be 90% Undervalued Following The Marvell Deal Article: Optical stocks rally
- Neutral Sentiment: The proposed all-stock Marvell deal values Lumentum at about $115 billion, with Lumentum shareholders set to receive 4.5 Marvell shares per share. That is not a fixed cash offer: its implied value will move with Marvell’s stock. The transaction is expected to take time to close and remains subject to regulatory approval. Article: Marvell Agreed to Pay $1,132 a Share for Lumentum
- Positive Sentiment: A bullish technical view says Lumentum is oversold after a steep decline, while analysts’ earnings-estimate increases could support a recovery. Article: Lumentum is Poised for a Turnaround
- Negative Sentiment: Recent pressure reflects a broader sell-off in AI and optical shares, alongside analyst downgrades and lower price expectations. The sharp recent declines suggest investors remain cautious despite the proposed acquisition and the latest rebound. Article: Lumentum Shares Down After Analyst Downgrade Article: AI optical stocks slide
Analyst Ratings Changes
Several research firms recently issued reports on LITE. Weiss Ratings lowered shares of Lumentum from a “hold (c-)” rating to a “sell (d-)” rating in a research report on Wednesday, August 19th. Stifel Nicolaus set a $806.00 price objective on shares of Lumentum in a research report on Monday. Raymond James Financial upgraded shares of Lumentum from a “moderate buy” rating to a “strong-buy” rating and set a $1,328.00 price objective for the company in a research report on Monday. Wolfe Research reaffirmed an “outperform” rating on shares of Lumentum in a report on Friday, August 21st. Finally, Needham & Company LLC decreased their price target on Lumentum from $1,040.00 to $800.00 and set a “buy” rating on the stock in a research note on Tuesday. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $1,081.61.
Read Our Latest Stock Analysis on Lumentum
Lumentum Price Performance
The company has a debt-to-equity ratio of 0.01, a current ratio of 1.61 and a quick ratio of 1.40. The stock has a market cap of $48.85 billion, a price-to-earnings ratio of -6.84 and a beta of 1.64. The business’s 50-day simple moving average is $902.48 and its two-hundred day simple moving average is $800.69.
Lumentum (NASDAQ:LITE – Get Free Report) last announced its quarterly earnings results on Monday, November 2nd. The technology company reported $4.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.22 by $0.35. Lumentum had a negative net margin of 175.82% and a positive return on equity of 28.85%. The company had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same period in the prior year, the business earned $1.10 earnings per share. The company’s revenue for the quarter was up 136.5% compared to the same quarter last year. Research analysts expect that Lumentum Holdings Inc. will post 19.80 earnings per share for the current year.
Insiders Place Their Bets
In other news, insider Yuen Wupen sold 307 shares of Lumentum stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $945.00, for a total transaction of $290,115.00. Following the sale, the insider directly owned 108,320 shares of the company’s stock, valued at approximately $102,362,400. This trade represents a 0.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Wajid Ali sold 24,542 shares of the company’s stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $1,048.50, for a total value of $25,732,287.00. Following the completion of the transaction, the chief financial officer directly owned 75,074 shares of the company’s stock, valued at $78,715,089. This represents a 24.64% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 94,496 shares of company stock worth $85,978,498 in the last 90 days. 0.28% of the stock is currently owned by corporate insiders.
Institutional Investors Weigh In On Lumentum
A number of institutional investors have recently added to or reduced their stakes in the business. Financiere des Professionnels Fonds d investissement inc. bought a new stake in shares of Lumentum in the first quarter worth $2,046,000. Styrax Capital LP lifted its holdings in Lumentum by 3.6% during the 1st quarter. Styrax Capital LP now owns 140,000 shares of the technology company’s stock worth $98,386,000 after buying an additional 4,837 shares during the period. Swiss National Bank grew its position in shares of Lumentum by 47.2% in the 1st quarter. Swiss National Bank now owns 208,015 shares of the technology company’s stock valued at $146,185,000 after buying an additional 66,700 shares during the last quarter. Franchise GP Ltd grew its position in shares of Lumentum by 201.7% in the 3rd quarter. Franchise GP Ltd now owns 13,880 shares of the technology company’s stock valued at $13,481,000 after buying an additional 9,280 shares during the last quarter. Finally, Triglav Investments D.O.O. acquired a new stake in shares of Lumentum in the first quarter valued at about $2,945,000. 94.05% of the stock is owned by institutional investors.
Lumentum Company Profile
Lumentum Holdings Inc develops and manufactures optical and photonic products used in communications networks and industrial applications. Its offerings include optical components, modules and lasers that help transmit and process data across telecommunications and data center networks.
The company also supplies lasers and related technologies for industrial uses, including precision manufacturing and semiconductor production. Its products serve customers in markets around the world.
Lumentum became an independent public company in 2015 through a spin-off from JDSU, now Viavi Solutions.
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