Lumentum (NASDAQ:LITE) Stock Price Down 3.8% – Time to Sell?

Lumentum Holdings Inc. (NASDAQ:LITE) shares traded down 3.8% during mid-day trading on Tuesday . The company traded as low as $903.02 and last traded at $910.81. 5,149,704 shares were traded during mid-day trading, a decline of 14% from the average session volume of 5,985,056 shares. The stock had previously closed at $946.90.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the company. UBS Group increased their target price on Lumentum from $455.00 to $960.00 and gave the company a “neutral” rating in a report on Wednesday, May 6th. Weiss Ratings restated a “hold (c)” rating on shares of Lumentum in a report on Tuesday, April 21st. JPMorgan Chase & Co. increased their target price on Lumentum from $950.00 to $1,130.00 and gave the company an “overweight” rating in a report on Wednesday, May 6th. Stifel Nicolaus increased their target price on Lumentum from $800.00 to $1,100.00 and gave the company a “buy” rating in a report on Tuesday, May 5th. Finally, Susquehanna increased their target price on Lumentum from $550.00 to $1,100.00 and gave the company a “positive” rating in a report on Monday, April 20th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $1,012.43.

Lumentum Trading Down 3.8%

The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97. The company has a fifty day moving average of $843.78 and a 200-day moving average of $567.91. The firm has a market capitalization of $70.86 billion, a PE ratio of 168.67 and a beta of 1.53.

Lumentum (NASDAQ:LITE) last announced its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.27 by $0.10. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The business had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.21 million. During the same period last year, the company earned $0.57 earnings per share. Lumentum’s quarterly revenue was up 90.1% compared to the same quarter last year. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, sell-side analysts anticipate that Lumentum Holdings Inc. will post 6.49 earnings per share for the current fiscal year.

Insider Buying and Selling at Lumentum

In related news, CFO Wajid Ali sold 2,487 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $953.95, for a total transaction of $2,372,473.65. Following the completion of the sale, the chief financial officer directly owned 60,951 shares in the company, valued at approximately $58,144,206.45. This trade represents a 3.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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, insider Vincent Retort sold 3,183 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $3,036,422.85. Following the sale, the insider owned 89,563 shares of the company’s stock, valued at approximately $85,438,623.85. This represents a 3.43% decrease in their ownership of the stock. 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. Insiders sold 41,146 shares of company stock valued at $37,667,478 in the last quarter. Corporate insiders own 0.43% of the company’s stock.

Hedge Funds Weigh In On Lumentum

Several hedge funds have recently bought and sold shares of LITE. Advisors Asset Management Inc. increased its position in Lumentum by 36.8% during the first quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company’s stock worth $59,000 after buying an additional 254 shares during the last quarter. NewEdge Advisors LLC increased its position in Lumentum by 109.9% during the first quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company’s stock worth $747,000 after buying an additional 6,275 shares during the last quarter. Empowered Funds LLC increased its position in Lumentum by 9.1% during the first quarter. Empowered Funds LLC now owns 8,139 shares of the technology company’s stock worth $507,000 after buying an additional 680 shares during the last quarter. Hsbc Holdings PLC acquired a new position in Lumentum during the second quarter worth $298,000. Finally, Arrowstreet Capital Limited Partnership acquired a new position in Lumentum during the second quarter worth $1,712,000. 94.05% of the stock is owned by institutional investors and hedge funds.

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.