Lumentum (NASDAQ:LITE) Shares Down 2.5% Following Insider Selling

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price dropped 2.5% on Wednesday following insider selling activity. The company traded as low as $856.23 and last traded at $868.07. Approximately 5,115,853 shares traded hands during mid-day trading, a decline of 15% from the average daily volume of 6,023,044 shares. The stock had previously closed at $890.09.

Specifically, CFO Wajid Ali sold 2,487 shares of the stock in a transaction on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $2,372,473.65. Following the transaction, the chief financial officer directly owned 60,951 shares of the company’s stock, valued at $58,144,206.45. This trade represents a 3.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through 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. Also, SVP Jae Kim sold 1,422 shares of Lumentum stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $1,356,516.90. Following the completion of the sale, the senior vice president owned 32,333 shares in the company, valued at approximately $30,844,065.35. This trade represents a 4.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. In other news, insider Vincent Retort sold 3,183 shares of the business’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $3,036,422.85. Following the completion of the sale, the insider owned 89,563 shares of the company’s stock, valued at $85,438,623.85. The trade was a 3.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on LITE. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Lumentum in a research note on Tuesday, April 21st. Mizuho set a $1,100.00 target price on Lumentum in a report on Wednesday, May 6th. Loop Capital raised their target price on Lumentum from $900.00 to $1,400.00 and gave the company a “buy” rating in a research report on Tuesday, May 5th. UBS Group lifted their price target on Lumentum from $455.00 to $960.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 6th. Finally, Jefferies Financial Group reiterated a “buy” rating and set a $1,200.00 price target on shares of Lumentum in a research report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $1,012.43.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Zacks named Lumentum one of its top momentum stocks and added it to its Strong Buy momentum list, reinforcing the view that recent price strength may continue. Best Momentum Stocks to Buy for May 20th
• Positive Sentiment: Another momentum-focused note highlighted Lumentum as a strong pick for trend investors, suggesting continued enthusiasm around the stock’s technical strength. Are You Looking for a Top Momentum Pick? Why Lumentum (LITE) is a Great Choice
• Positive Sentiment: Seeking Alpha said Lumentum is positioned for growth because demand for its photonic products tied to AI and data center infrastructure remains strong, with key products sold out or capacity-constrained. Lumentum: Priced For Growth, But Not For What Comes Next – Double Growth Cycles
• Neutral Sentiment: Insider sales by the CFO and multiple executives were disclosed, but the trades were pre-planned 10b5-1 sales tied to tax withholding from equity vesting, making them more of a sentiment overhang than a fundamental warning. SEC filing for Wajid Ali sale
• Neutral Sentiment: The company’s recent earnings beat and upbeat guidance continue to support the longer-term story, but these results were already known and are not a fresh catalyst today. Lumentum’s 1,500% Run and Nvidia’s $2 Billion Deal: What Comes Next?
• Negative Sentiment: Some articles noted that Lumentum fell along with other AI optics names as investors took profits after a sharp run-up, which may be contributing to short-term pressure. Applied Optoelectronics Slumps 10%, Lumentum Dives 9%, Coherent Drops 6% as AI Optics Profit-Takers Strike

Lumentum Stock Performance

The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01. The stock’s fifty day simple moving average is $821.27 and its 200 day simple moving average is $547.23. The company has a market cap of $67.54 billion, a price-to-earnings ratio of 160.75 and a beta of 1.53.

Lumentum (NASDAQ:LITE) last issued its earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, topping the consensus estimate of $2.27 by $0.10. The business had revenue of $808.40 million for the quarter, compared to analysts’ expectations of $810.21 million. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The business’s revenue for the quarter was up 90.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, analysts anticipate that Lumentum Holdings Inc. will post 6.49 earnings per share for the current year.

Hedge Funds Weigh In On Lumentum

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LITE. Liontrust Investment Partners LLP grew its stake in shares of Lumentum by 25.8% in the 1st quarter. Liontrust Investment Partners LLP now owns 21,580 shares of the technology company’s stock valued at $15,166,000 after buying an additional 4,419 shares during the period. E20 Capital Ltd increased its stake in Lumentum by 606.9% during the first quarter. E20 Capital Ltd now owns 186,661 shares of the technology company’s stock worth $131,178,000 after acquiring an additional 160,256 shares during the last quarter. Janus Henderson Group PLC increased its stake in Lumentum by 163.2% during the first quarter. Janus Henderson Group PLC now owns 567,182 shares of the technology company’s stock worth $398,590,000 after acquiring an additional 351,676 shares during the last quarter. Oddo BHF Asset Management Sas increased its stake in Lumentum by 15,180.0% during the first quarter. Oddo BHF Asset Management Sas now owns 9,168 shares of the technology company’s stock worth $6,443,000 after acquiring an additional 9,108 shares during the last quarter. Finally, Bull Harbor Capital LLC acquired a new stake in Lumentum during the first quarter worth $588,000. Institutional investors and hedge funds own 94.05% of the company’s stock.

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.