Lumentum (NASDAQ:LITE) Shares Down 9.2% – Here’s Why

Lumentum Holdings Inc. (NASDAQ:LITE) shares dropped 9.2% on Wednesday . The stock traded as low as $934.00 and last traded at $934.9240. Approximately 4,491,938 shares were traded during mid-day trading, a decline of 25% from the average daily volume of 5,996,552 shares. The stock had previously closed at $1,029.15.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Nvidia’s commentary on the growing importance of optical interconnects for AI data centers put Lumentum in the spotlight as a key supplier to the AI buildout. Nvidia Optics Shift Puts Lumentum At Center Of AI Data Centers
• Positive Sentiment: Northland Securities boosted its price target and maintained an outperform rating, signaling stronger confidence in Lumentum’s growth outlook. Northland Securities adjusts PT on Lumentum to $1,200 from $1,000
• Positive Sentiment: Recent coverage highlighted Lumentum’s AI laser chip momentum, including record EML shipments and strong demand for 200G and co-packaged optics products. Lumentum’s AI Laser Chip Momentum Builds: More Upside Ahead?
• Positive Sentiment: The broader optics sector has been rallying, with Lumentum benefiting from investor rotation into names tied to AI networking and data-center infrastructure. Why Coherent and Lumentum stocks jumped on Tuesday

Analyst Ratings Changes

LITE has been the topic of several research reports. Mizuho set a $1,100.00 price target on shares of Lumentum in a research report on Wednesday, May 6th. Jefferies Financial Group restated a “buy” rating and issued a $1,200.00 price target on shares of Lumentum in a research report on Wednesday, May 6th. Bank of America boosted their price target on shares of Lumentum to $520.00 and gave the stock a “neutral” rating in a research report on Wednesday, February 4th. Craig Hallum boosted their price target on shares of Lumentum from $900.00 to $1,150.00 in a research report on Wednesday, May 6th. Finally, BNP Paribas Exane boosted their price target on shares of Lumentum from $1,040.00 to $1,300.00 in a research report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, Lumentum has a consensus rating of “Moderate Buy” and a consensus price target of $1,021.95.

Lumentum Price Performance

The stock’s 50 day moving average price is $865.06 and its 200-day moving average price is $590.51. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01. The stock has a market capitalization of $72.76 billion, a PE ratio of 173.36 and a beta of 1.47.

Lumentum (NASDAQ:LITE) last posted its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, topping analysts’ consensus estimates of $2.27 by $0.10. The firm had revenue of $808.40 million for the quarter, compared to analysts’ expectations of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The business’s revenue for the quarter was up 90.1% on a year-over-year basis. During the same period in the prior year, the business posted $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, equities analysts forecast that Lumentum Holdings Inc. will post 6.49 EPS for the current year.

Insider Transactions at Lumentum

In other news, Director Ian Small sold 4,954 shares of the company’s stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $868.07, for a total value of $4,300,418.78. Following the transaction, the director directly owned 21,008 shares in the company, valued at approximately $18,236,414.56. This represents a 19.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Isaac Hosojiro Harris sold 4,000 shares of the company’s stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $860.00, for a total transaction of $3,440,000.00. Following the completion of the transaction, the director owned 8,400 shares in the company, valued at approximately $7,224,000. The trade was a 32.26% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 39,844 shares of company stock valued at $37,443,107. Company insiders own 0.43% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Sachetta LLC lifted its stake in Lumentum by 118.8% in the first quarter. Sachetta LLC now owns 35 shares of the technology company’s stock worth $25,000 after acquiring an additional 19 shares during the period. Hilton Head Capital Partners LLC purchased a new stake in Lumentum in the first quarter worth about $25,000. Abel Hall LLC lifted its stake in Lumentum by 5.5% in the first quarter. Abel Hall LLC now owns 693 shares of the technology company’s stock worth $487,000 after acquiring an additional 36 shares during the period. Checchi Capital Advisers LLC lifted its stake in Lumentum by 5.1% in the first quarter. Checchi Capital Advisers LLC now owns 790 shares of the technology company’s stock worth $555,000 after acquiring an additional 38 shares during the period. Finally, 180 Wealth Advisors LLC lifted its stake in Lumentum by 2.9% in the first quarter. 180 Wealth Advisors LLC now owns 1,553 shares of the technology company’s stock worth $1,092,000 after acquiring an additional 44 shares during the period. 94.05% of the stock is currently owned by institutional investors.

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.