Lumentum (NASDAQ:LITE) Shares Gap Up – Still a Buy?

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price gapped up before the market opened on Thursday . The stock had previously closed at $707.10, but opened at $755.16. Lumentum shares last traded at $796.9180, with a volume of 1,467,612 shares.

Analysts Set New Price Targets

LITE has been the topic of several recent analyst reports. Jefferies Financial Group reissued a “buy” rating and issued a $1,200.00 target price on shares of Lumentum in a research note on Wednesday, May 6th. Barclays lifted their price objective on Lumentum from $750.00 to $1,000.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 6th. Stifel Nicolaus upped 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. Mizuho set a $1,100.00 price target on Lumentum in a research note on Wednesday, May 6th. Finally, Craig Hallum lifted their price target on shares of Lumentum from $900.00 to $1,150.00 in a report on Wednesday, May 6th. Fourteen analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $1,021.95.

Lumentum Stock Performance

The company has a 50-day simple moving average of $883.55 and a two-hundred day simple moving average of $694.44. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14. The firm has a market capitalization of $61.27 billion, a P/E ratio of 145.52 and a beta of 1.48.

Lumentum (NASDAQ:LITE) last announced its earnings results 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 firm had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.21 million. During the same quarter in the prior year, the company earned $0.57 EPS. The business’s 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. As a group, equities analysts forecast that Lumentum Holdings Inc. will post 6.4 EPS for the current year.

Insiders Place Their Bets

In other news, insider Vincent Retort sold 3,183 shares of the business’s stock in a transaction on 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 sale, the insider owned 89,563 shares in the company, valued at approximately $85,438,623.85. The trade was a 3.43% decrease in their position. The sale was disclosed in a filing with the SEC, 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 Yuen Wupen sold 3,210 shares of the company’s stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $953.95, for a total transaction of $3,062,179.50. Following the completion of the sale, the insider directly owned 81,488 shares in the company, valued at $77,735,477.60. This represents a 3.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 have sold 41,260 shares of company stock valued at $38,859,220 in the last 90 days. Corporate insiders own 0.43% of the company’s stock.

Institutional Investors Weigh In On Lumentum

Hedge funds and other institutional investors have recently bought and sold shares of the business. Hilton Head Capital Partners LLC purchased a new position in shares of Lumentum during the first quarter valued at approximately $25,000. Sachetta LLC grew its stake in shares of Lumentum by 118.8% in the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock worth $25,000 after buying an additional 19 shares during the last quarter. V Square Quantitative Management LLC purchased a new stake in shares of Lumentum in the 4th quarter worth approximately $28,000. Truvestments Capital LLC increased its position in Lumentum by 300.0% during the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock valued at $28,000 after buying an additional 57 shares in the last quarter. Finally, Triumph Capital Management purchased a new position in Lumentum during the fourth quarter valued at $30,000. Hedge funds and other 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.