Lumentum (NASDAQ:LITE) Stock Falls 1.4% – Time to Sell?

Lumentum Holdings Inc. (NASDAQ:LITE) fell 1.4% during trading on Tuesday. The company traded as low as $785.00 and last traded at $822.51. Approximately 4,396,151 shares changed hands during mid-day trading, a decline of 20% from the average session volume of 5,481,450 shares. The stock had previously closed at $834.51.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the company. Deutsche Bank Aktiengesellschaft assumed coverage on Lumentum in a report on Monday, August 31st. They set a “buy” rating and a $1,200.00 price objective on the stock. UBS Group set a $820.00 target price on Lumentum in a report on Wednesday, August 12th. TD Cowen boosted their target price on Lumentum from $800.00 to $820.00 and gave the company a “hold” rating in a report on Wednesday, August 12th. Citigroup raised their price target on Lumentum from $1,200.00 to $1,400.00 and gave the stock a “buy” rating in a research note on Monday, September 28th. Finally, Stifel Nicolaus lifted their price target on Lumentum from $1,100.00 to $1,232.00 and gave the stock a “buy” rating in a research report on Monday, October 5th. Sixteen investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell 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 price target of $1,080.83.

Lumentum Price Performance

The company has a 50-day moving average of $930.30 and a 200-day moving average of $879.13. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.40 and a current ratio of 1.68. The stock has a market cap of $77.06 billion, a price-to-earnings ratio of -10.35 and a beta of 1.53.

Lumentum (NASDAQ:LITE) last released its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 analyst estimates of $987.70 million. During the same quarter in the previous year, the company posted $0.88 earnings per share. The company’s revenue for the quarter was up 109.3% compared to the same quarter last year. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, equities research analysts predict that Lumentum Holdings Inc. will post 19.79 earnings per share for the current year.

Insider Activity

In other Lumentum news, SVP Jae Kim sold 12,000 shares of the stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $852.58, for a total value of $10,230,960.00. Following the completion of the transaction, the senior vice president owned 37,804 shares in the company, valued at approximately $32,230,934.32. This represents a 24.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael Hurlston sold 548 shares of the firm’s stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $958.66, for a total value of $525,345.68. Following the completion of the sale, the chief executive officer directly owned 186,951 shares of the company’s stock, valued at approximately $179,222,445.66. This trade represents a 0.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 94,496 shares of company stock valued at $85,978,498 over the last three months. 0.28% of the stock is currently owned by corporate insiders.

Institutional Trading of Lumentum

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Burkett Financial Services LLC acquired a new position in Lumentum during the third quarter worth about $28,000. Hilton Head Capital Partners LLC acquired a new stake in shares of Lumentum during the 1st quarter valued at approximately $25,000. Sachetta LLC lifted its position in shares of Lumentum by 118.8% during the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock valued at $25,000 after acquiring an additional 19 shares during the period. Meeder Asset Management Inc. acquired a new stake in shares of Lumentum during the 2nd quarter valued at approximately $40,000. Finally, Pension & Wealth Management Advisors Inc. purchased a new stake in shares of Lumentum during the 3rd quarter worth approximately $46,000. Institutional investors and hedge funds own 94.05% of the company’s stock.

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.