Lumentum (NASDAQ:LITE) Trading Up 8.8% – Should You Buy?

Lumentum Holdings Inc. (NASDAQ:LITE) shares traded up 8.8% during mid-day trading on Wednesday . The stock traded as high as $784.89 and last traded at $764.65. 6,750,345 shares changed hands during trading, an increase of 13% from the average session volume of 5,989,287 shares. The stock had previously closed at $702.76.

Analyst Ratings Changes

A number of research firms recently commented on LITE. Citigroup lifted their target price on shares of Lumentum to $560.00 and gave the stock a “buy” rating in a research note on Thursday, February 5th. TD Cowen initiated coverage on shares of Lumentum in a research note on Thursday, March 12th. They set a “hold” rating and a $675.00 price target on the stock. Susquehanna raised their price target on shares of Lumentum to $550.00 and gave the stock a “positive” rating in a report on Wednesday, February 4th. Needham & Company LLC lifted their price objective on shares of Lumentum to $850.00 and gave the stock a “buy” rating in a research note on Wednesday, March 4th. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Lumentum in a report on Monday, December 29th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Lumentum currently has an average rating of “Moderate Buy” and a consensus target price of $575.06.

Lumentum Stock Performance

The stock has a 50-day moving average of $613.16 and a 200 day moving average of $385.22. The company has a quick ratio of 0.45, a current ratio of 0.61 and a debt-to-equity ratio of 0.06. The stock has a market cap of $59.04 billion, a PE ratio of 253.64 and a beta of 1.38.

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

Insider Buying and Selling at Lumentum

In other Lumentum news, Director Penny Herscher sold 4,849 shares of Lumentum stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $535.48, for a total transaction of $2,596,542.52. Following the completion of the transaction, the director owned 6,057 shares in the company, valued at approximately $3,243,402.36. This trade represents a 44.46% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Yuen Wupen sold 3,157 shares of the business’s stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $538.00, for a total value of $1,698,466.00. Following the completion of the transaction, the insider directly owned 88,439 shares of the company’s stock, valued at approximately $47,580,182. This trade represents a 3.45% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 65,775 shares of company stock valued at $38,851,343. Company insiders own 0.43% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC boosted its position in Lumentum by 363.9% in the 3rd quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company’s stock worth $27,000 after purchasing an additional 131 shares in the last quarter. V Square Quantitative Management LLC purchased a new position in shares of Lumentum during the 4th quarter valued at approximately $28,000. Truvestments Capital LLC lifted its stake in shares of Lumentum by 300.0% in the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock valued at $28,000 after purchasing an additional 57 shares during the period. Triumph Capital Management acquired a new position in shares of Lumentum in the 4th quarter valued at $30,000. Finally, Danske Bank A S purchased a new stake in Lumentum during the third quarter worth $33,000. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

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.