Lumentum (NASDAQ:LITE) Stock Price Up 1.4% – Should You Buy?

Shares of Lumentum Holdings Inc. (NASDAQ:LITE) rose 1.4% during mid-day trading on Thursday . The company traded as high as $881.79 and last traded at $838.06. Approximately 4,056,986 shares changed hands during mid-day trading, a decline of 29% from the average daily volume of 5,716,496 shares. The stock had previously closed at $826.26.

Analysts Set New Price Targets

Several research firms have issued reports on LITE. Rosenblatt Securities lifted their price objective on Lumentum from $900.00 to $1,300.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Lumentum in a report on Friday, July 17th. Barclays upped their price target on shares of Lumentum from $750.00 to $1,000.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 6th. Craig Hallum lifted their target price on Lumentum from $900.00 to $1,150.00 in a research note on Wednesday, May 6th. Finally, Citigroup reiterated a “buy” rating on shares of Lumentum in a report on Thursday, July 16th. Fourteen research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $1,012.67.

Lumentum Stock Performance

The company has a market cap of $65.20 billion, a price-to-earnings ratio of 155.20 and a beta of 1.50. 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 firm has a fifty day simple moving average of $814.98 and a 200 day simple moving average of $749.34.

Lumentum (NASDAQ:LITE) last released its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 analysts’ expectations of $810.21 million. During the same period in the prior year, the company earned $0.57 earnings per share. The business’s quarterly revenue was up 90.1% compared to the same quarter last year. On average, sell-side analysts expect that Lumentum Holdings Inc. will post 6.42 earnings per share for the current fiscal year.

Insider Transactions at Lumentum

In other Lumentum news, SVP Jae Kim sold 1,422 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 value of $1,356,516.90. Following the sale, the senior vice president directly owned 32,333 shares in the company, valued at $30,844,065.35. This trade represents a 4.21% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at 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, Director Ian Small sold 4,954 shares of the firm’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $868.07, for a total value 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 represents a 19.08% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 41,260 shares of company stock worth $38,859,220. 0.43% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of LITE. Hilton Head Capital Partners LLC bought a new position in Lumentum during the 1st quarter worth about $25,000. Sachetta LLC boosted its stake in shares of Lumentum by 118.8% during the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock worth $25,000 after acquiring an additional 19 shares during the period. V Square Quantitative Management LLC bought a new position in shares of Lumentum during the 4th quarter worth approximately $28,000. Truvestments Capital LLC increased its holdings in shares of Lumentum by 300.0% during the 4th 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 in the fourth quarter valued at about $30,000. 94.05% of the stock is currently owned by institutional investors.

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.