Lumentum (NASDAQ:LITE) Stock Price Down 6.1% – Here’s What Happened

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price traded down 6.1% during trading on Thursday . The company traded as low as $693.00 and last traded at $706.23. 3,957,376 shares changed hands during trading, a decline of 32% from the average daily volume of 5,837,806 shares. The stock had previously closed at $752.00.

More Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Analysts highlighted Lumentum’s record laser-chip shipments and capacity expansion, suggesting the company is well positioned to benefit from surging AI networking demand. Can Lumentum’s AI Laser Chip Demand Accelerate Revenue Growth?
• Positive Sentiment: Lumentum was upgraded to Zacks Rank #2 (Buy) after earnings estimates were raised, which signals improving sentiment around near-term earnings prospects. Lumentum (LITE) Upgraded to Buy: What Does It Mean for the Stock?
• Positive Sentiment: Coverage comparing Lumentum with Applied Digital favored Lumentum’s stronger execution, AI-driven growth, and lower valuation, reinforcing the stock’s appeal to growth investors. LITE vs. APLD: Which AI Infrastructure Stock Offers Better Growth?
• Neutral Sentiment: UBS reaffirmed its Hold rating, which may temper enthusiasm even as the broader AI-demand story remains constructive. UBS Reaffirms Their Hold Rating on Lumentum Holdings (LITE)
• Neutral Sentiment: Citi’s addition of Lumentum to a 90-day catalyst watch suggests traders are watching for near-term catalysts, but it does not by itself change the fundamental outlook. Lumentum in focus as Citi adds 90-day catalyst watch
• Negative Sentiment: Some articles point to valuation and analyst-watch attention rather than confirmed new financial results, so the stock could be vulnerable if AI demand growth or execution does not continue to meet high expectations.

Analysts Set New Price Targets

Several analysts have issued reports on LITE shares. B. Riley Financial restated a “buy” rating on shares of Lumentum in a report on Friday, May 1st. JPMorgan Chase & Co. boosted their price target on shares of Lumentum from $950.00 to $1,130.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. UBS Group raised their price objective on shares of Lumentum from $455.00 to $960.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 6th. Jefferies Financial Group reaffirmed a “buy” rating and set a $1,200.00 target price on shares of Lumentum in a research note on Wednesday, May 6th. Finally, Citigroup reiterated a “buy” rating on shares of Lumentum in a report on Thursday. Fourteen research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $1,012.67.

Lumentum Trading Up 3.8%

The company has a 50 day moving average price of $865.06 and a 200 day moving average price of $710.76. The firm has a market cap of $57.01 billion, a price-to-earnings ratio of 135.71 and a beta of 1.48. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14.

Lumentum (NASDAQ:LITE) last issued its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 the consensus estimate of $810.21 million. During the same period last year, the company earned $0.57 EPS. The company’s quarterly revenue was up 90.1% on a year-over-year basis. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, research analysts expect that Lumentum Holdings Inc. will post 6.4 earnings per share for the current year.

Insider Transactions at Lumentum

In other news, Director Isaac Hosojiro Harris sold 4,000 shares of the company’s stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $860.00, for a total value of $3,440,000.00. Following the transaction, the director directly owned 8,400 shares in the company, valued at approximately $7,224,000. This represents a 32.26% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through 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 that occurred on Thursday, May 21st. The shares were sold at an average price of $868.07, for a total transaction of $4,300,418.78. Following the completion of the sale, the director owned 21,008 shares of the company’s stock, valued at $18,236,414.56. This trade represents a 19.08% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 41,260 shares of company stock worth $38,859,220. 0.43% of the stock is owned by company insiders.

Institutional Investors Weigh In On Lumentum

A number of institutional investors have recently modified their holdings of LITE. Nomura Asset Management Co. Ltd. lifted its holdings in shares of Lumentum by 45.0% in the 4th quarter. Nomura Asset Management Co. Ltd. now owns 369,804 shares of the technology company’s stock valued at $136,306,000 after buying an additional 114,714 shares during the period. Andar Capital Management HK Ltd acquired a new position in Lumentum during the fourth quarter worth $4,325,000. Whittier Trust Co. raised its position in Lumentum by 21,806.5% in the first quarter. Whittier Trust Co. now owns 74,044 shares of the technology company’s stock worth $57,183,000 after acquiring an additional 73,706 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. purchased a new position in Lumentum in the fourth quarter worth $6,755,000. Finally, Maxi Investments CY Ltd acquired a new stake in Lumentum in the fourth quarter valued at $2,212,000. 94.05% of the stock is owned by institutional investors and hedge funds.

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.