Lumentum (NASDAQ:LITE) Shares Up 9.4% – Here’s Why

Lumentum Holdings Inc. (NASDAQ:LITE) shares rose 9.4% during trading on Monday . The company traded as high as $628.70 and last traded at $610.89. Approximately 3,619,385 shares changed hands during trading, a decline of 32% from the average daily volume of 5,324,905 shares. The stock had previously closed at $558.44.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on LITE shares. Morgan Stanley increased their price target on Lumentum to $520.00 and gave the company an “equal weight” rating in a research note on Monday, February 23rd. UBS Group upped their price objective on Lumentum from $215.00 to $455.00 and gave the company a “neutral” rating in a report on Wednesday, February 4th. Mizuho boosted their target price on Lumentum to $645.00 and gave the stock an “outperform” rating in a research report on Tuesday, February 17th. Barclays increased their price target on shares of Lumentum to $750.00 and gave the company an “equal weight” rating in a research report on Tuesday, March 3rd. Finally, Zacks Research upgraded shares of Lumentum from a “hold” rating to a “strong-buy” rating in a report on Tuesday, December 2nd. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, Lumentum presently has an average rating of “Moderate Buy” and an average target price of $513.94.

Lumentum Price Performance

The company has a 50-day moving average of $482.89 and a 200-day moving average of $313.45. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.45 and a current ratio of 0.61. The firm has a market capitalization of $44.08 billion, a price-to-earnings ratio of 189.40 and a beta of 1.38.

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

Insider Activity at Lumentum

In other Lumentum news, CFO Wajid Ali sold 5,302 shares of the stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $691.13, for a total transaction of $3,664,371.26. Following the completion of the transaction, the chief financial officer owned 66,287 shares in the company, valued at approximately $45,812,934.31. This represents a 7.41% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Vincent Retort sold 45,026 shares of the business’s stock in a transaction dated Thursday, February 12th. The shares were sold at an average price of $591.32, for a total value 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. This trade represents a 30.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 65,775 shares of company stock valued at $38,851,343 in the last quarter. 0.43% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Lumentum

Several institutional investors have recently bought and sold shares of the company. Arrowstreet Capital Limited Partnership raised its position in Lumentum by 8,579.2% during the third quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company’s stock worth $254,350,000 after acquiring an additional 1,545,199 shares in the last quarter. Norges Bank acquired a new position in Lumentum in the 4th quarter valued at $474,495,000. Value Aligned Research Advisors LLC bought a new position in Lumentum during the fourth quarter worth about $432,062,000. Hood River Capital Management LLC raised its position in shares of Lumentum by 82.1% in the second quarter. Hood River Capital Management LLC now owns 2,206,453 shares of the technology company’s stock valued at $209,745,000 after buying an additional 994,551 shares in the last quarter. Finally, Situational Awareness LP grew its stake in Lumentum by 210.9% during the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock worth $478,577,000 after buying an additional 880,800 shares in the last quarter. Institutional investors 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.