Lumentum (NASDAQ:LITE) Trading Up 8.9% – What’s Next?

Shares of Lumentum Holdings Inc. (NASDAQ:LITE) shot up 8.9% during trading on Tuesday . The company traded as high as $868.32 and last traded at $849.47. Approximately 6,593,538 shares traded hands during trading, an increase of 15% from the average session volume of 5,744,877 shares. The stock had previously closed at $779.89.

Wall Street Analysts Forecast Growth

LITE has been the subject of several research reports. 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 note on Tuesday, May 5th. Citigroup reiterated a “buy” rating on shares of Lumentum in a research note on Thursday, July 16th. Weiss Ratings reissued a “hold (c)” rating on shares of Lumentum in a report on Friday, July 17th. BNP Paribas Exane increased their target price on Lumentum from $1,040.00 to $1,300.00 in a research note on Wednesday, May 6th. Finally, Zacks Research downgraded Lumentum from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Fourteen investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $1,012.67.

Lumentum Price Performance

The firm has a market capitalization of $65.20 billion, a P/E ratio of 155.20 and a beta of 1.50. 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 50-day moving average of $814.98 and a 200-day moving average of $749.34.

Lumentum (NASDAQ:LITE) last issued its earnings results on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, beating 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 business had revenue of $808.40 million for the quarter, compared to the consensus estimate of $810.21 million. During the same period last year, the business posted $0.57 EPS. The company’s revenue was up 90.1% compared to the same quarter last year. As a group, analysts predict that Lumentum Holdings Inc. will post 6.42 EPS for the current year.

Insider Activity at Lumentum

In related news, Director Ian Small sold 4,954 shares of Lumentum stock in a transaction dated 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 directly owned 21,008 shares in the company, valued at approximately $18,236,414.56. This trade represents a 19.08% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Jae Kim sold 1,422 shares of the company’s stock in a transaction dated 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 $30,844,065.35. This represents a 4.21% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 sold a total of 41,260 shares of company stock valued at $38,859,220 over the last three months. 0.43% of the stock is owned by insiders.

Institutional Trading of Lumentum

A number of hedge funds have recently bought and sold shares of the company. Sound Portfolio Advisors LLC purchased a new position in Lumentum in the second quarter worth about $429,000. Private Advisory Group LLC bought a new stake in Lumentum during the second quarter valued at approximately $2,075,000. Focus Partners Advisor Solutions LLC bought a new position in Lumentum in the second quarter worth approximately $1,143,000. State of Wyoming purchased a new position in shares of Lumentum during the 2nd quarter worth $571,000. Finally, GSA Capital Partners LLP bought a new stake in shares of Lumentum during the 2nd quarter valued at $268,000. 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.