Lumentum (NASDAQ:LITE) Stock Falls 1.8% Following Analyst Downgrade

Shares of Lumentum Holdings Inc. (NASDAQ:LITE) fell 1.8% on Tuesday after UBS Group lowered their price target on the stock from $960.00 to $686.00. UBS Group currently has a neutral rating on the stock. Lumentum traded as low as $570.41 and last traded at $585.57. 4,732,362 shares were traded during mid-day trading, a decline of 15% from the average daily volume of 5,588,185 shares. The stock had previously closed at $596.16.

A number of other equities analysts have also recently issued reports on the company. Susquehanna cut their price target on Lumentum from $1,100.00 to $950.00 and set a “positive” rating on the stock in a report on Tuesday, November 3rd. Zacks Research lowered shares of Lumentum from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 12th. TD Cowen dropped their target price on shares of Lumentum from $820.00 to $685.00 and set a “hold” rating on the stock in a research report on Tuesday, November 3rd. B. Riley Financial downgraded shares of Lumentum from a “buy” rating to a “neutral” rating and decreased their price target for the company from $1,142.00 to $770.00 in a research note on Tuesday, November 3rd. Finally, Evercore assumed coverage on shares of Lumentum in a report on Monday, August 31st. They set an “outperform” rating and a $1,100.00 price objective on the stock. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Lumentum currently has a consensus rating of “Moderate Buy” and a consensus target price of $1,053.17.

Insiders Place Their Bets

In other Lumentum news, CFO Wajid Ali sold 24,542 shares of the business’s stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $1,048.50, for a total value of $25,732,287.00. Following the transaction, the chief financial officer owned 75,074 shares of the company’s stock, valued at approximately $78,715,089. The trade was a 24.64% decrease in their ownership of the stock. The transaction 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 Lumentum stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $945.00, for a total value of $290,115.00. Following the sale, the insider owned 108,320 shares in the company, valued at $102,362,400. The trade was a 0.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 94,496 shares of company stock worth $85,978,498 over the last quarter. 0.28% of the stock is currently owned by corporate insiders.

More Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Sanford C. Bernstein raised its price target to $700 from $635 and assigned an “outperform” rating, implying about 19.5% upside from the cited $585.94 share price. Analyst rating information
• Neutral Sentiment: Brodsky & Smith announced an investigation involving Lumentum. The notice does not disclose specific findings, so its implications for the company remain unclear. Shareholder investigation notice
• Negative Sentiment: UBS cut its price target to $686 from $960 and shifted to a “neutral” rating. The revised target remains above the cited share price, but the sizable reduction signals a more cautious outlook. Analyst rating information
• Negative Sentiment: Coverage of the Marvell transaction says the all-stock offer’s implied value has fallen as Marvell shares declined, reducing the acquisition consideration for Lumentum shareholders. That makes the deal’s value more uncertain and has weighed on LITE in recent trading. Acquisition consideration analysis

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Red Spruce Capital LLC lifted its position in shares of Lumentum by 0.4% in the third quarter. Red Spruce Capital LLC now owns 3,200 shares of the technology company’s stock valued at $3,108,000 after acquiring an additional 12 shares in the last quarter. CYBER HORNET ETFs LLC raised its stake in Lumentum by 7.2% during the 2nd quarter. CYBER HORNET ETFs LLC now owns 209 shares of the technology company’s stock valued at $179,000 after purchasing an additional 14 shares during the period. Hilltop National Bank raised its stake in Lumentum by 26.8% during the 2nd quarter. Hilltop National Bank now owns 71 shares of the technology company’s stock valued at $61,000 after purchasing an additional 15 shares during the period. TrinityBridge Ltd lifted its holdings in Lumentum by 35.8% in the 3rd quarter. TrinityBridge Ltd now owns 72 shares of the technology company’s stock worth $70,000 after purchasing an additional 19 shares in the last quarter. Finally, Signature Equity Partners LLC lifted its holdings in Lumentum by 220.0% in the 3rd quarter. Signature Equity Partners LLC now owns 32 shares of the technology company’s stock worth $31,000 after purchasing an additional 22 shares in the last quarter. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

Lumentum Trading Down 1.8%

The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.40 and a current ratio of 1.61. The company has a market capitalization of $53.11 billion, a PE ratio of -7.44 and a beta of 1.64. The stock has a fifty day moving average of $888.15 and a 200 day moving average of $802.77.

Lumentum (NASDAQ:LITE) last released its quarterly earnings data on Monday, November 2nd. The technology company reported $4.57 EPS for the quarter, beating the consensus estimate of $4.22 by $0.35. The business had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.26 billion. Lumentum had a negative net margin of 175.82% and a positive return on equity of 28.85%. The business’s revenue was up 136.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.10 EPS. As a group, sell-side analysts predict that Lumentum Holdings Inc. will post 19.93 earnings per share for the current fiscal year.

Lumentum Company Profile

Lumentum Holdings Inc. develops and manufactures optical and photonic products used in communications networks and industrial applications. Its offerings include optical components, modules and lasers that help transmit and process data across telecommunications and data center networks. The company also supplies lasers and related technologies for industrial uses, including precision manufacturing and semiconductor production. Its products serve customers in markets around the world. Lumentum became an independent public company in 2015 through a spin-off from JDSU, now Viavi Solutions.