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

Lumentum Holdings Inc. (NASDAQ:LITE) gapped down prior to trading on Tuesday . The stock had previously closed at $577.15, but opened at $548.22. Lumentum shares last traded at $560.4260, with a volume of 1,693,791 shares changing hands.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on LITE. UBS Group upped their target price on Lumentum from $215.00 to $455.00 and gave the company a “neutral” rating in a research note on Wednesday, February 4th. Stifel Nicolaus increased their price objective on Lumentum to $480.00 and gave the company a “buy” rating in a research note on Wednesday, February 4th. B.Riley Securit raised shares of Lumentum from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, February 4th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Lumentum in a research note on Monday, December 29th. Finally, B. Riley Financial raised shares of Lumentum from a “neutral” rating to a “buy” rating and boosted their price objective for the company from $147.00 to $526.00 in a research report on Wednesday, February 4th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $444.94.

Lumentum Stock Down 2.4%

The company has a debt-to-equity ratio of 0.06, a current ratio of 0.61 and a quick ratio of 0.45. The stock has a market cap of $40.22 billion, a price-to-earnings ratio of 172.66 and a beta of 1.51. The firm’s 50-day moving average is $372.86 and its 200 day moving average is $242.80.

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 the consensus estimate of $1.41 by $0.26. The company had revenue of $665.50 million during the quarter, compared to analysts’ expectations of $646.74 million. Lumentum had a net margin of 11.95% and a return on equity of 17.27%. The business’s quarterly revenue was up 65.5% compared to the same quarter last year. During the same period in the previous year, the company earned $0.42 EPS. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. Sell-side analysts anticipate that Lumentum Holdings Inc. will post 0.03 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Yuen Wupen sold 822 shares of the company’s stock in a transaction dated Wednesday, November 19th. The stock was sold at an average price of $258.96, for a total value of $212,865.12. Following the completion of the sale, the insider owned 95,077 shares of the company’s stock, valued at $24,621,139.92. This represents a 0.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Pamela Fletcher sold 3,421 shares of the business’s stock in a transaction that occurred on Wednesday, November 19th. The stock was 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 trade 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 7,180 shares of company stock worth $1,847,480 over the last quarter. 0.43% of the stock is owned by corporate insiders.

Institutional Trading of Lumentum

Several large investors have recently modified their holdings of LITE. V Square Quantitative Management LLC purchased a new stake in Lumentum during the 4th quarter worth approximately $28,000. Harbour Investments Inc. increased its stake in shares of Lumentum by 675.0% in the fourth quarter. Harbour Investments Inc. now owns 93 shares of the technology company’s stock worth $34,000 after buying an additional 81 shares during the last quarter. Chesapeake Asset Management LLC acquired a new stake in Lumentum in the fourth quarter valued at $37,000. BOCHK Asset Management Ltd bought a new position in Lumentum during the 4th quarter valued at $37,000. Finally, Pilgrim Partners Asia Pte Ltd bought a new position in Lumentum during the 4th quarter valued at $55,000. 94.05% of the stock is currently owned by institutional investors and hedge funds.

About Lumentum

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.