Lumentum (NASDAQ:LITE) Shares Gap Down – Time to Sell?

Lumentum Holdings Inc. (NASDAQ:LITE) gapped down before the market opened on Tuesday . The stock had previously closed at $624.84, but opened at $597.00. Lumentum shares last traded at $641.6970, with a volume of 2,422,500 shares traded.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on LITE shares. B. Riley Financial raised Lumentum from a “neutral” rating to a “buy” rating and upped their price target for the company from $147.00 to $526.00 in a report on Wednesday, February 4th. Rosenblatt Securities raised their price objective on Lumentum to $580.00 and gave the stock a “buy” rating in a report on Wednesday, February 4th. TD Cowen assumed coverage on Lumentum in a report on Thursday, March 12th. They issued a “hold” rating and a $675.00 target price for the company. Citigroup upped their target price on Lumentum to $560.00 and gave the company a “buy” rating in a research report on Thursday, February 5th. Finally, Mizuho boosted their price objective on Lumentum to $645.00 and gave the company an “outperform” rating in a research note on Tuesday, February 17th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat, Lumentum presently has an average rating of “Moderate Buy” and an average target price of $550.38.

Lumentum Stock Performance

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 $44.13 billion, a price-to-earnings ratio of 189.63 and a beta of 1.38. The stock’s 50-day moving average is $515.37 and its 200 day moving average is $335.29.

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

Insider Buying and Selling

In related news, CFO Wajid Ali sold 5,302 shares of the stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $691.13, for a total transaction of $3,664,371.26. Following the transaction, the chief financial officer directly owned 66,287 shares in the company, valued at approximately $45,812,934.31. This represents a 7.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Vincent Retort sold 3,441 shares of the firm’s stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $545.78, for a total transaction of $1,878,028.98. Following the completion of the sale, the insider directly owned 95,975 shares in the company, valued at $52,381,235.50. This represents a 3.46% 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 valued at $38,851,343 over the last three months. Insiders own 0.43% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Advisors Asset Management Inc. boosted its holdings in Lumentum by 36.8% in the 1st quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company’s stock worth $59,000 after acquiring an additional 254 shares during the period. NewEdge Advisors LLC lifted its holdings in Lumentum by 109.9% in the 1st quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company’s stock worth $747,000 after buying an additional 6,275 shares in the last quarter. Empowered Funds LLC boosted its position in Lumentum by 9.1% in the 1st quarter. Empowered Funds LLC now owns 8,139 shares of the technology company’s stock valued at $507,000 after buying an additional 680 shares during the last quarter. Envestnet Asset Management Inc. grew its stake in shares of Lumentum by 16.3% during the second quarter. Envestnet Asset Management Inc. now owns 14,926 shares of the technology company’s stock valued at $1,419,000 after acquiring an additional 2,089 shares in the last quarter. Finally, ProShare Advisors LLC purchased a new stake in shares of Lumentum during the second quarter worth about $292,000. 94.05% of the stock is owned by institutional investors and hedge funds.

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.