Lumentum Holdings Inc. (NASDAQ:LITE) Given Average Rating of “Moderate Buy” by Brokerages

Shares of Lumentum Holdings Inc. (NASDAQ:LITE) have been assigned a consensus rating of “Moderate Buy” from the twenty-two ratings firms that are currently covering the firm, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation, five have given a hold recommendation, fifteen have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $1,053.8261.

Several equities analysts have issued reports on the stock. Mizuho upped their price target on shares of Lumentum from $1,100.00 to $1,140.00 and gave the company an “outperform” rating in a research report on Wednesday, August 12th. Raymond James Financial restated an “outperform” rating and issued a $1,036.00 price objective on shares of Lumentum in a report on Wednesday, August 12th. Deutsche Bank Aktiengesellschaft began coverage on Lumentum in a research report on Monday, August 31st. They set a “buy” rating and a $1,200.00 target price for the company. Evercore began coverage on Lumentum in a report on Monday, August 31st. They set an “outperform” rating and a $1,100.00 target price on the stock. Finally, Wolfe Research reiterated an “outperform” rating on shares of Lumentum in a research report on Friday, August 21st.

Insider Activity at Lumentum

In related news, CEO Michael E. Hurlston sold 548 shares of the business’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 transaction, the chief executive officer owned 186,951 shares in the company, valued at $179,222,445.66. The trade was a 0.29% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Yuen Wupen sold 500 shares of the company’s stock in a transaction on Friday, September 18th. The shares were sold at an average price of $920.00, for a total transaction of $460,000.00. Following the sale, the insider directly owned 111,627 shares in the company, valued at $102,696,840. This trade represents a 0.45% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 67,647 shares of company stock worth $58,061,056 over the last quarter. 0.43% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Jupiter Topco LLC bought a new stake in Lumentum in the second quarter worth approximately $1,621,396,000. Arrowstreet Capital Limited Partnership lifted its position in shares of Lumentum by 18.7% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company’s stock valued at $683,661,000 after acquiring an additional 291,591 shares during the period. Geode Capital Management LLC boosted its stake in Lumentum by 9.6% during the fourth quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company’s stock worth $521,563,000 after acquiring an additional 123,265 shares in the last quarter. Situational Awareness LP boosted its stake in Lumentum by 210.9% during the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock worth $478,577,000 after acquiring an additional 880,800 shares in the last quarter. Finally, Norges Bank acquired a new stake in Lumentum in the fourth quarter worth $474,495,000. 94.05% of the stock is owned by institutional investors and hedge funds.

Lumentum Price Performance

Shares of LITE opened at $930.91 on Friday. The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01. The stock has a market cap of $83.50 billion, a PE ratio of -11.32 and a beta of 1.53. Lumentum has a 12-month low of $144.52 and a 12-month high of $1,085.68. The business has a 50-day simple moving average of $843.36 and a two-hundred day simple moving average of $833.95.

Lumentum (NASDAQ:LITE) last announced its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 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 firm had revenue of $1.01 billion for the quarter, compared to analyst estimates of $987.70 million. During the same period last year, the firm posted $0.88 earnings per share. The business’s revenue for the quarter was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Analysts anticipate that Lumentum will post 19.78 earnings per share for the current fiscal year.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: AI-driven demand is strengthening the investment case. Data centers are shifting from copper to optical connections because fiber offers greater bandwidth, lower signal loss and lower heat at 800G and 1.6-terabit speeds. Lumentum supplies laser diodes, photonic integrated circuits and optical subsystems needed for these networks. Laser Focus: 2 Optical Stocks Lighting Up AI
• Positive Sentiment: Recent operating performance supports the rally. Lumentum’s latest quarter included $1.01 billion in revenue, up 109.3% year over year, and adjusted EPS of $3.23, above the $2.97 consensus estimate. Management also issued stronger current-quarter revenue guidance, reinforcing expectations for continued AI-infrastructure growth. Lumentum’s 680% Run Created a New Portfolio Problem
• Positive Sentiment: Analyst and momentum support remain favorable. Lumentum retains a Moderate Buy consensus rating, while momentum-focused coverage highlights its strong recent performance. Nvidia’s $2 billion investment and multibillion-dollar purchase commitment for advanced laser components also validate Lumentum’s strategic importance to AI networking. Why Lumentum Is a Strong Momentum Stock
• Neutral Sentiment: Insider selling was disclosed, but appears limited. Yuen Wupen sold a combined 1,000 shares for approximately $888,415 under a pre-arranged Rule 10b5-1 plan. The transactions reduced the insider’s position by less than 1%, leaving substantial ownership and limiting the signal’s significance. SEC insider transaction filing
• Negative Sentiment: Valuation and portfolio-concentration risks are rising. After a substantial advance, Lumentum trades at an elevated sales valuation, leaving less room for supply-chain problems, production issues or slower hyperscaler spending. Investors are also cautioned to review position sizes after the stock’s large run.

About Lumentum

Lumentum Holdings Inc (NASDAQ: LITE) designs and manufactures optical and photonic products used to transmit, process and control light. Its portfolio includes optical components, modules, subsystems, lasers and photonic integrated circuits that support communications networks, data centers, cloud infrastructure and industrial applications.

The company also supplies technologies for consumer electronics and 3D sensing, including laser-based products used in applications such as depth sensing and facial recognition.