Lumentum (NASDAQ:LITE) Shares Gap Down – Should You Sell?

Lumentum Holdings Inc. (NASDAQ:LITE) gapped down prior to trading on Thursday . The stock had previously closed at $801.16, but opened at $777.58. Lumentum shares last traded at $791.8340, with a volume of 452,388 shares trading hands.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on LITE. Raymond James Financial reiterated an “outperform” rating and set a $1,014.00 price target on shares of Lumentum in a research note on Wednesday, May 6th. Northland Securities raised their price objective on shares of Lumentum from $1,000.00 to $1,200.00 and gave the stock an “outperform” rating in a report on Wednesday, June 3rd. TD Cowen lifted their target price on shares of Lumentum from $875.00 to $995.00 and gave the company a “hold” rating in a research report on Wednesday, May 6th. Mizuho set a $1,100.00 target price on shares of Lumentum in a research report on Wednesday, May 6th. Finally, Loop Capital increased their price target on shares of Lumentum from $900.00 to $1,400.00 and gave the stock a “buy” rating in a research report on Tuesday, May 5th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $1,021.95.

Lumentum Trading Down 6.2%

The company’s fifty day moving average price is $897.63 and its two-hundred day moving average price is $680.63. 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 firm has a market cap of $58.47 billion, a P/E ratio of 139.41 and a beta of 1.48.

Lumentum (NASDAQ:LITE) last announced its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.27 by $0.10. The firm had revenue of $808.40 million during the quarter, compared to the consensus estimate of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The firm’s quarterly revenue was up 90.1% on a year-over-year basis. During the same period last year, the firm posted $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, sell-side analysts predict that Lumentum Holdings Inc. will post 6.4 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Brian Lillie sold 11,951 shares of the firm’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $981.64, for a total transaction of $11,731,579.64. Following the completion of the sale, the director directly owned 13,959 shares of the company’s stock, valued at $13,702,712.76. This trade represents a 46.13% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ian Small sold 4,954 shares of Lumentum stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $868.07, for a total value of $4,300,418.78. Following the completion of the transaction, the director owned 21,008 shares of the company’s stock, valued at approximately $18,236,414.56. The trade was a 19.08% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 41,260 shares of company stock worth $38,859,220 over the last ninety days. 0.43% of the stock is owned by insiders.

Institutional Trading of Lumentum

Large investors have recently made changes to their positions in the business. Hilltop National Bank increased its stake in shares of Lumentum by 26.8% in the second quarter. Hilltop National Bank now owns 71 shares of the technology company’s stock valued at $61,000 after buying an additional 15 shares in the last quarter. Sachetta LLC lifted its position in Lumentum by 118.8% during the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock worth $25,000 after buying an additional 19 shares in the last quarter. Hilton Head Capital Partners LLC acquired a new position in Lumentum during the 1st quarter worth about $25,000. Abel Hall LLC grew its holdings in Lumentum by 5.5% during the 1st quarter. Abel Hall LLC now owns 693 shares of the technology company’s stock worth $487,000 after acquiring an additional 36 shares during the last quarter. Finally, Checchi Capital Advisers LLC increased its position in Lumentum by 5.1% in the 1st quarter. Checchi Capital Advisers LLC now owns 790 shares of the technology company’s stock valued at $555,000 after acquiring an additional 38 shares in the last quarter. Institutional investors 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.