Lumentum (NASDAQ:LITE) Shares Gap Up – Should You Buy?

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price gapped up before the market opened on Monday. The stock had previously closed at $824.13, but opened at $872.50. Lumentum shares last traded at $839.6890, with a volume of 722,967 shares.

Analysts Set New Price Targets

Several research firms have commented on LITE. Raymond James Financial reissued an “outperform” rating and issued a $1,036.00 target price on shares of Lumentum in a report on Wednesday, August 12th. TD Cowen boosted their target price on shares of Lumentum from $800.00 to $820.00 and gave the company a “hold” rating in a research report on Wednesday, August 12th. Deutsche Bank Aktiengesellschaft began coverage on shares of Lumentum in a report on Monday, August 31st. They set a “buy” rating and a $1,200.00 price target for the company. Rosenblatt Securities reaffirmed a “buy” rating and set a $1,300.00 price target on shares of Lumentum in a report on Monday, October 5th. Finally, Zacks Research lowered shares of Lumentum from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 12th. Sixteen investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Lumentum presently has a consensus rating of “Moderate Buy” and an average target price of $1,078.75.

Lumentum Price Performance

The stock has a market cap of $77.26 billion, a P/E ratio of -10.35 and a beta of 1.53. The company’s 50 day moving average price is $931.48 and its 200-day moving average price is $877.62. The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE) last announced its earnings results on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, beating the consensus estimate of $2.97 by $0.26. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%. The business had revenue of $1.01 billion for the quarter, compared to analysts’ expectations of $987.70 million. During the same period in the prior year, the business posted $0.88 earnings per share. The firm’s revenue was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, sell-side analysts expect that Lumentum Holdings Inc. will post 19.79 earnings per share for the current year.

Insider Buying and Selling at Lumentum

In other news, CFO Wajid Ali sold 24,542 shares of the company’s stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $1,048.50, for a total transaction of $25,732,287.00. Following the transaction, the chief financial officer owned 75,074 shares in the company, valued at approximately $78,715,089. This represents a 24.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 307 shares of the company’s stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $945.00, for a total transaction of $290,115.00. Following the transaction, the insider owned 108,320 shares in the company, valued at $102,362,400. This represents a 0.28% 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. Over the last ninety days, insiders sold 94,496 shares of company stock valued at $85,978,498. Insiders own 0.28% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Jupiter Topco LLC acquired a new position in Lumentum during the 2nd quarter worth approximately $1,621,396,000. Amundi boosted its holdings in Lumentum by 188.7% in the second quarter. Amundi now owns 658,427 shares of the technology company’s stock worth $564,970,000 after acquiring an additional 430,355 shares in the last quarter. WT Asset Management Ltd acquired a new stake in Lumentum in the second quarter valued at approximately $494,688,000. Janus Henderson Group PLC grew its stake in Lumentum by 163.2% in the first quarter. Janus Henderson Group PLC now owns 567,182 shares of the technology company’s stock valued at $398,590,000 after acquiring an additional 351,676 shares during the period. Finally, Legal & General Group Plc acquired a new stake in Lumentum in the second quarter valued at approximately $376,539,000. 94.05% of the stock is owned by institutional investors and hedge funds.

Lumentum Company Profile

Lumentum Holdings Inc is a technology company that designs and manufactures optical and photonic products for communications networks, industrial applications, and consumer electronics. Its portfolio includes optical components, modules, and subsystems used in fiber-optic networks, data centers, cloud computing infrastructure, telecommunications equipment, and high-speed connectivity systems.

The company also develops laser products for applications such as industrial processing, sensing, three-dimensional imaging, and other specialized commercial and consumer uses.