Lumentum (NASDAQ:LITE) Shares Gap Up – Here’s Why

Shares of Lumentum Holdings Inc. (NASDAQ:LITE) gapped up before the market opened on Wednesday . The stock had previously closed at $649.56, but opened at $709.15. Lumentum shares last traded at $731.6650, with a volume of 3,215,033 shares traded.

Wall Street Analysts Forecast Growth

LITE has been the subject of a number of research analyst reports. Citigroup raised their target price on Lumentum to $560.00 and gave the company a “buy” rating in a research note on Thursday, February 5th. JPMorgan Chase & Co. upped their price target on Lumentum to $565.00 and gave the stock an “overweight” rating in a research note on Wednesday, February 4th. Needham & Company LLC increased their price objective on Lumentum to $850.00 and gave the stock a “buy” rating in a report on Wednesday, March 4th. B. Riley Financial upgraded shares of Lumentum from a “neutral” rating to a “buy” rating and boosted their target price for the company from $147.00 to $526.00 in a report on Wednesday, February 4th. Finally, Morgan Stanley upped their target price on shares of Lumentum to $520.00 and gave the stock an “equal weight” rating in a research report on Monday, February 23rd. Two analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Lumentum has a consensus rating of “Moderate Buy” and a consensus price target of $570.38.

Lumentum Price Performance

The company has a current ratio of 0.61, a quick ratio of 0.45 and a debt-to-equity ratio of 0.06. The company has a market cap of $50.35 billion, a PE ratio of 216.49 and a beta of 1.38. The firm has a 50 day moving average of $520.42 and a two-hundred day moving average of $338.93.

Lumentum (NASDAQ:LITE) last announced its quarterly earnings data on Tuesday, February 3rd. The technology company reported $1.67 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.41 by $0.26. Lumentum had a return on equity of 17.27% and a net margin of 11.95%.The business had revenue of $665.50 million during the quarter, compared to analysts’ expectations of $646.74 million. During the same quarter in the previous year, the business earned $0.42 earnings per share. The firm’s quarterly revenue was up 65.5% compared to the same quarter last year. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. Research analysts predict that Lumentum Holdings Inc. will post 0.03 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Penny Herscher sold 4,849 shares of the company’s stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $535.48, for a total value of $2,596,542.52. Following the transaction, the director owned 6,057 shares in the company, valued at $3,243,402.36. The trade was a 44.46% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Wajid Ali sold 5,302 shares of the stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $691.13, for a total transaction of $3,664,371.26. Following the sale, the chief financial officer directly owned 66,287 shares in the company, valued at $45,812,934.31. This trade represents a 7.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 65,775 shares of company stock worth $38,851,343 in the last 90 days. 0.43% of the stock is owned by company insiders.

Institutional Investors Weigh In On Lumentum

A number of institutional investors have recently made changes to their positions in the company. Truvestments Capital LLC increased its position in shares of Lumentum by 300.0% during the fourth quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock valued at $28,000 after acquiring an additional 57 shares in the last quarter. V Square Quantitative Management LLC bought a new position in Lumentum in the 4th quarter valued at approximately $28,000. Triumph Capital Management purchased a new stake in Lumentum during the 4th quarter valued at $30,000. Harbour Investments Inc. boosted its stake in Lumentum by 675.0% during the 4th quarter. Harbour Investments Inc. now owns 93 shares of the technology company’s stock valued at $34,000 after purchasing an additional 81 shares during the last quarter. Finally, Chesapeake Asset Management LLC bought a new stake in shares of Lumentum in the 4th quarter worth $37,000. 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.