Lumentum (NASDAQ:LITE) Shares Down 6.9% – Should You Sell?

Lumentum Holdings Inc. (NASDAQ:LITE) was down 6.9% during mid-day trading on Monday . The stock traded as low as $326.59 and last traded at $327.1810. Approximately 2,172,882 shares changed hands during mid-day trading, a decline of 52% from the average daily volume of 4,503,906 shares. The stock had previously closed at $351.42.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on LITE. Wolfe Research reiterated an “outperform” rating and issued a $240.00 price target on shares of Lumentum in a report on Wednesday, November 5th. Susquehanna boosted their target price on shares of Lumentum from $140.00 to $190.00 and gave the company a “positive” rating in a research note on Wednesday, October 22nd. Needham & Company LLC upped their price target on shares of Lumentum to $290.00 and gave the stock a “buy” rating in a report on Monday, November 24th. Rosenblatt Securities raised their price target on shares of Lumentum to $380.00 and gave the stock a “buy” rating in a research note on Thursday, December 4th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Lumentum from $145.00 to $185.00 and gave the company an “overweight” rating in a research report on Thursday, October 16th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $230.25.

Lumentum Trading Down 3.3%

The stock has a market capitalization of $24.10 billion, a P/E ratio of 228.10 and a beta of 1.51. The stock’s 50 day moving average price is $316.21 and its 200-day moving average price is $198.85. The company has a quick ratio of 1.02, a current ratio of 1.37 and a debt-to-equity ratio of 2.77.

Lumentum (NASDAQ:LITE) last posted its earnings results on Tuesday, November 4th. The technology company reported $1.10 earnings per share for the quarter, topping analysts’ consensus estimates of $1.03 by $0.07. The company had revenue of $533.80 million during the quarter, compared to analyst estimates of $525.10 million. Lumentum had a return on equity of 4.62% and a net margin of 6.11%.Lumentum’s revenue was up 58.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.18 earnings per share. Lumentum has set its Q2 2026 guidance at 1.300-1.500 EPS. As a group, equities research analysts expect that Lumentum Holdings Inc. will post 0.03 earnings per share for the current year.

Insider Activity at Lumentum

In related news, Director Isaac Hosojiro Harris sold 7,200 shares of the business’s stock in a transaction on Friday, November 7th. The stock was sold at an average price of $243.32, for a total transaction of $1,751,904.00. Following the transaction, the director directly owned 9,764 shares in the company, valued at $2,375,776.48. The trade was a 42.44% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Pamela Fletcher sold 3,421 shares of the company’s stock in a transaction dated Wednesday, November 19th. The shares were sold at an average price of $273.53, for a total value of $935,746.13. Following the transaction, the director directly owned 10,561 shares in the company, valued at $2,888,750.33. This represents a 24.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 28,612 shares of company stock valued at $7,317,398 over the last three months. Company insiders own 0.43% of the company’s stock.

Hedge Funds Weigh In On Lumentum

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Cordant Inc. purchased a new stake in Lumentum during the 4th quarter worth approximately $1,722,000. DAVENPORT & Co LLC purchased a new stake in shares of Lumentum during the fourth quarter valued at $420,000. M & L Capital Management Ltd acquired a new position in shares of Lumentum in the 4th quarter valued at $14,430,000. Assenagon Asset Management S.A. increased its position in shares of Lumentum by 707.0% in the 4th quarter. Assenagon Asset Management S.A. now owns 994,478 shares of the technology company’s stock valued at $366,555,000 after acquiring an additional 871,249 shares during the period. Finally, Diversified Trust Co. purchased a new position in Lumentum in the 4th quarter worth $251,000. 94.05% of the stock is 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.