Lumentum Holdings Inc. (NASDAQ:LITE – Get Free Report) shares were down 6.5% on Tuesday . The company traded as low as $832.18 and last traded at $836.92. Approximately 5,660,673 shares changed hands during trading, a decline of 6% from the average daily volume of 5,991,208 shares. The stock had previously closed at $895.11.
More Lumentum News
Here are the key news stories impacting Lumentum this week:
- Positive Sentiment: Major brokerages boosted targets and forecasts, reinforcing a bullish long?term thesis (higher fair?value, AI optics exposure). Needham & Company Boosts Lumentum Price Target to $1,040.00 Susquehanna Increases Lumentum Price Target to $1,100.00 Morgan Stanley Boosts Lumentum Price Target to $710.00
- Positive Sentiment: Street research is turning markedly more bullish: Northland raised FY?2027 EPS estimates sharply (from $10.69 to $14.59), signaling higher expected earnings power tied to AI/network optics demand. (research note summary)
- Positive Sentiment: Operational demand signals remain strong — company commentary and coverage say Lumentum is “sold out through 2027,” supporting revenue visibility and capacity expansion plans tied to AI and large customer commitments. Lumentum Holdings (LITE) Sold Out Through 2027 on High Demand
- Positive Sentiment: Analyst and media pieces are reframing Lumentum as an AI?optics play (NVIDIA commitments, capacity builds, index/inclusion chatter), which supports higher valuation assumptions. How The Lumentum Holdings (LITE) Story Is Shifting With AI Optics And Nvidia Commitments Lumentum’s Transition Toward AI Networking: What’s Ahead?
- Neutral Sentiment: Cable?TV / pundit coverage referenced the name as one that “got away” for some investors — raises awareness but has limited direct impact on fundamentals. Cramer Names ‘The Stocks That Got Away’ — SanDisk Is Number 1
- Negative Sentiment: New short/leveraged products launched today make it easier and cheaper for traders to bet against LITE — the Tradr 2X Short LITE Daily ETF (LITZ) seeks -200% of daily LITE moves, which can increase intraday selling pressure and volatility. Tradr Debuts Short ETFs on Lumentum and Sandisk
Analysts Set New Price Targets
A number of equities research analysts have recently issued reports on the stock. Bank of America boosted their price objective on shares of Lumentum to $520.00 and gave the company a “neutral” rating in a research report on Wednesday, February 4th. Northland Securities set a $1,000.00 price objective on shares of Lumentum in a research report on Monday. Weiss Ratings reissued a “hold (c)” rating on shares of Lumentum in a research report on Tuesday. TD Cowen boosted their price objective on shares of Lumentum from $675.00 to $875.00 and gave the company a “hold” rating in a research report on Friday, April 10th. Finally, Morgan Stanley boosted their price objective on shares of Lumentum from $595.00 to $710.00 and gave the company an “equal weight” rating in a research report on Monday. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $757.25.
Lumentum Stock Performance
The stock has a market cap of $60.47 billion, a P/E ratio of 259.78 and a beta of 1.38. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.45 and a current ratio of 0.61. The business’s 50-day moving average price is $728.12 and its 200-day moving average price is $454.81.
Lumentum (NASDAQ:LITE – Get Free Report) 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. The company had revenue of $665.50 million during the quarter, compared to the consensus estimate of $646.74 million. Lumentum had a net margin of 11.95% and a return on equity of 17.27%. Lumentum’s quarterly revenue was up 65.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.42 EPS. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. As a group, sell-side analysts expect that Lumentum Holdings Inc. will post 5.87 earnings per share for the current fiscal year.
Insider Activity
In related news, Director Penny Herscher sold 4,849 shares of the company’s stock in a transaction on Friday, February 6th. The shares were sold at an average price of $535.48, for a total value of $2,596,542.52. Following the completion of the transaction, the director owned 6,057 shares of the company’s stock, valued at approximately $3,243,402.36. This represents a 44.46% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Wajid Ali sold 5,302 shares of the company’s stock in a transaction on 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 completion of the transaction, the chief financial officer directly owned 66,287 shares of the company’s stock, valued at $45,812,934.31. This represents a 7.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 65,775 shares of company stock worth $38,851,343. 0.43% of the stock is currently owned by corporate insiders.
Institutional Inflows and Outflows
Several hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. boosted its holdings in Lumentum by 0.6% in the 3rd quarter. Vanguard Group Inc. now owns 7,485,282 shares of the technology company’s stock worth $1,217,930,000 after buying an additional 41,975 shares during the period. Arrowstreet Capital Limited Partnership boosted its holdings 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 purchasing an additional 291,591 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of Lumentum by 9.6% during the 4th quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company’s stock valued at $521,563,000 after purchasing an additional 123,265 shares during the last quarter. Situational Awareness LP boosted its holdings in shares of Lumentum by 210.9% during the 4th quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock valued at $478,577,000 after purchasing an additional 880,800 shares during the last quarter. Finally, Norges Bank bought a new position in shares of Lumentum during the 4th quarter valued at about $474,495,000. Institutional investors own 94.05% of the company’s stock.
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.
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