Lumentum (NASDAQ:LITE) Shares Down 6.7% – Here’s Why

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price fell 6.7% on Monday . The stock traded as low as $697.88 and last traded at $711.96. Approximately 3,719,598 shares were traded during mid-day trading, a decline of 35% from the average session volume of 5,752,654 shares. The stock had previously closed at $762.99.

Analysts Set New Price Targets

A number of research firms recently issued reports on LITE. Zacks Research downgraded shares of Lumentum from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. B. Riley Financial reaffirmed a “buy” rating on shares of Lumentum in a report on Friday, May 1st. JPMorgan Chase & Co. increased their price target on shares of Lumentum from $950.00 to $1,130.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. 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. Finally, Jefferies Financial Group reissued a “buy” rating and set a $1,200.00 price objective on shares of Lumentum in a research report on Wednesday, May 6th. Fourteen research 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 company currently has an average rating of “Moderate Buy” and an average target price of $1,012.67.

Lumentum Trading Down 6.7%

The stock has a 50-day moving average price of $844.69 and a two-hundred day moving average price of $728.47. The stock has a market capitalization of $55.39 billion, a PE ratio of 131.84 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 released 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 net margin of 17.61% and a return on equity of 24.81%. The company had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.21 million. During the same period in the prior year, the firm posted $0.57 EPS. The firm’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. As a group, equities analysts forecast that Lumentum Holdings Inc. will post 6.42 earnings per share for the current year.

Insider Transactions at Lumentum

In other news, CFO Wajid Ali sold 2,487 shares of the firm’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 $2,372,473.65. Following the sale, the chief financial officer directly owned 60,951 shares in the company, valued at $58,144,206.45. This trade represents a 3.92% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 on 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 transaction, 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. 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. Over the last quarter, insiders sold 41,260 shares of company stock valued at $38,859,220. Company insiders own 0.43% of the company’s stock.

Institutional Trading of Lumentum

Institutional investors have recently made changes to their positions in the business. Hilton Head Capital Partners LLC bought a new stake in Lumentum during the 1st quarter valued at approximately $25,000. Sachetta LLC raised its position in shares of Lumentum by 118.8% during the first quarter. Sachetta LLC now owns 35 shares of the technology company’s stock valued at $25,000 after buying an additional 19 shares during the last quarter. V Square Quantitative Management LLC purchased a new position in shares of Lumentum in the fourth quarter worth $28,000. Truvestments Capital LLC boosted its position in shares of Lumentum by 300.0% during the fourth quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock worth $28,000 after acquiring an additional 57 shares during the last quarter. Finally, Triumph Capital Management bought a new position in shares of Lumentum during the fourth quarter worth $30,000. Hedge funds and other institutional investors own 94.05% of the company’s stock.

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.