Lumentum (NASDAQ:LITE) Trading Up 11.1% – Still a Buy?

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price was up 11.1% on Thursday . The company traded as high as $804.90 and last traded at $785.77. 5,453,136 shares were traded during mid-day trading, a decline of 8% from the average daily volume of 5,910,556 shares. The stock had previously closed at $707.10.

Analyst Upgrades and Downgrades

LITE has been the subject of a number of research analyst reports. Craig Hallum raised their price objective on shares of Lumentum from $900.00 to $1,150.00 in a report on Wednesday, May 6th. Zacks Research cut shares of Lumentum from a “strong-buy” rating to a “hold” rating in a research note on Monday. Rosenblatt Securities increased their target price on shares of Lumentum from $900.00 to $1,300.00 and gave the company a “buy” rating in a research report on Wednesday, May 6th. Citigroup increased their target price on shares of Lumentum from $800.00 to $1,100.00 and gave the company a “buy” rating in a research report on Tuesday, April 21st. Finally, Susquehanna raised their price target on shares of Lumentum from $550.00 to $1,100.00 and gave the stock a “positive” rating in a research note on Monday, April 20th. Fourteen research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,021.95.

Lumentum Stock Performance

The firm has a market capitalization of $61.13 billion, a PE ratio of 145.51 and a beta of 1.48. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97. The company’s fifty day simple moving average is $883.55 and its 200 day simple moving average is $694.44.

Lumentum (NASDAQ:LITE) last issued its earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, topping analysts’ consensus estimates of $2.27 by $0.10. The firm had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The company’s quarterly revenue was up 90.1% on a year-over-year basis. During the same quarter last year, the business earned $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, equities research analysts expect that Lumentum Holdings Inc. will post 6.4 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Vincent Retort sold 3,183 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $953.95, for a total value of $3,036,422.85. Following the completion of the transaction, the insider directly owned 89,563 shares of the company’s stock, valued at approximately $85,438,623.85. This trade represents a 3.43% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Yuen Wupen sold 3,210 shares of Lumentum stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $3,062,179.50. Following the completion of the transaction, the insider owned 81,488 shares of the company’s stock, valued at $77,735,477.60. This represents a 3.79% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 41,260 shares of company stock worth $38,859,220 in the last 90 days. 0.43% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Lumentum

Hedge funds have recently made changes to their positions in the stock. Arista Wealth Management LLC bought a new position in Lumentum in the 2nd quarter valued at $687,000. Tactive Advisors LLC purchased a new position in shares of Lumentum during the 2nd quarter valued at $616,000. Everpar Advisors LLC bought a new position in shares of Lumentum in the second quarter worth $224,000. Valeo Financial Advisors LLC bought a new position in shares of Lumentum in the second quarter worth $504,000. Finally, Quantum Financial Advisors LLC purchased a new stake in shares of Lumentum in the second quarter worth $221,000. 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.