Lumentum (NASDAQ:LITE) Shares Down 6.8% – Time to Sell?

Shares of Lumentum Holdings Inc. (NASDAQ:LITE) were down 6.8% during trading on Monday . The stock traded as low as $642.37 and last traded at $654.79. Approximately 7,355,676 shares were traded during mid-day trading, an increase of 23% from the average daily volume of 5,964,343 shares. The stock had previously closed at $702.73.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. Citigroup boosted their price target on shares of Lumentum to $560.00 and gave the company a “buy” rating in a report on Thursday, February 5th. Needham & Company LLC lifted their target price on shares of Lumentum to $850.00 and gave the company a “buy” rating in a research report on Wednesday, March 4th. TD Cowen assumed coverage on shares of Lumentum in a research note on Thursday, March 12th. They issued a “hold” rating and a $675.00 target price on the stock. Rosenblatt Securities reissued a “buy” rating and issued a $900.00 price target on shares of Lumentum in a research report on Wednesday, March 18th. Finally, Barclays raised their price target on shares of Lumentum to $750.00 and gave the stock an “equal weight” rating in a research note on Tuesday, March 3rd. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Lumentum has a consensus rating of “Moderate Buy” and an average price target of $575.06.

Lumentum Stock Up 8.8%

The firm has a market cap of $54.60 billion, a price-to-earnings ratio of 234.56 and a beta of 1.38. 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 business’s 50-day moving average is $595.67 and its 200-day moving average is $379.44.

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

Insiders Place Their Bets

In other Lumentum news, CFO Wajid Ali sold 5,302 shares of the business’s stock in a transaction on Friday, February 27th. The stock was sold at an average price of $691.13, for a total value of $3,664,371.26. Following the transaction, the chief financial officer owned 66,287 shares of the company’s stock, valued at approximately $45,812,934.31. The trade was a 7.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Penny Herscher sold 4,000 shares of the stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $597.29, for a total value of $2,389,160.00. Following the sale, the director owned 2,057 shares in the company, valued at $1,228,625.53. The trade was a 66.04% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 65,775 shares of company stock valued at $38,851,343 in the last 90 days. Insiders own 0.43% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Arrowstreet Capital Limited Partnership grew its holdings in Lumentum by 8,579.2% during the 3rd 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 during the last quarter. Norges Bank acquired a new position in shares of Lumentum during the fourth quarter worth approximately $474,495,000. Value Aligned Research Advisors LLC bought a new stake in shares of Lumentum during the fourth quarter valued at approximately $432,062,000. Hood River Capital Management LLC grew its stake in shares of Lumentum by 82.1% during 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 purchasing an additional 994,551 shares during the last quarter. Finally, Situational Awareness LP increased its holdings in shares of Lumentum by 210.9% in the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock valued at $478,577,000 after purchasing an additional 880,800 shares in the last quarter. 94.05% of the stock is owned by institutional investors.

Lumentum Company Profile

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.