Lumentum (NASDAQ:LITE) Trading Up 7.3% – Should You Buy?

Lumentum Holdings Inc. (NASDAQ:LITE) shares shot up 7.3% on Tuesday . The stock traded as high as $703.43 and last traded at $702.76. 6,045,075 shares changed hands during trading, an increase of 1% from the average session volume of 5,975,559 shares. The stock had previously closed at $654.79.

Analyst Ratings Changes

LITE has been the topic of a number of research analyst reports. Morgan Stanley boosted their target price on shares of Lumentum to $595.00 and gave the company an “equal weight” rating in a research note on Wednesday, March 18th. Northland Securities set a $350.00 price objective on Lumentum in a research note on Wednesday, December 3rd. Citigroup raised their target price on Lumentum to $560.00 and gave the stock a “buy” rating in a research report on Thursday, February 5th. Rosenblatt Securities reaffirmed a “buy” rating and set a $900.00 price target on shares of Lumentum in a research report on Wednesday, March 18th. Finally, Zacks Research raised Lumentum from a “hold” rating to a “strong-buy” rating in a report on Tuesday, December 2nd. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $575.06.

Lumentum Price Performance

The business’s 50 day moving average is $588.75 and its two-hundred day moving average is $375.64. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.45 and a current ratio of 0.61. The firm has a market capitalization of $50.18 billion, a PE ratio of 215.57 and a beta of 1.38.

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

Insider Buying and Selling

In other news, insider Vincent Retort sold 45,026 shares of the stock in a transaction dated Thursday, February 12th. The shares were sold at an average price of $591.32, for a total value of $26,624,774.32. Following the sale, the insider directly owned 102,455 shares of the company’s stock, valued at approximately $60,583,690.60. This represents a 30.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Yuen Wupen sold 3,157 shares of the firm’s stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $538.00, for a total transaction of $1,698,466.00. Following the completion of the transaction, the insider owned 88,439 shares of the company’s stock, valued at $47,580,182. This trade represents a 3.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have 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 Trading of Lumentum

Several institutional investors and hedge funds have recently bought and sold shares of the company. EverSource Wealth Advisors LLC grew its position in shares of Lumentum by 363.9% during the 3rd quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company’s stock valued at $27,000 after purchasing an additional 131 shares in the last quarter. V Square Quantitative Management LLC bought a new stake in Lumentum during the fourth quarter valued at $28,000. Truvestments Capital LLC boosted its stake in 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 buying an additional 57 shares during the period. Triumph Capital Management purchased a new position in Lumentum during the fourth quarter worth about $30,000. Finally, Danske Bank A S bought a new position in Lumentum in the 3rd quarter worth about $33,000. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

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.