Lumentum (NASDAQ:LITE) Trading 6.1% Higher – Still a Buy?

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price rose 6.1% on Tuesday . The stock traded as high as $839.88 and last traded at $814.80. Approximately 3,735,857 shares changed hands during trading, a decline of 36% from the average session volume of 5,861,125 shares. The stock had previously closed at $768.15.

Analysts Set New Price Targets

A number of brokerages have issued reports on LITE. Raymond James Financial reaffirmed an “outperform” rating and issued a $1,014.00 price objective on shares of Lumentum in a research report on Wednesday, May 6th. Morgan Stanley boosted their target price on Lumentum from $710.00 to $900.00 and gave the stock an “equal weight” rating in a research note on Wednesday, May 6th. Barclays upped their target price on Lumentum from $750.00 to $1,000.00 and gave the company an “equal weight” rating in a report on Wednesday, May 6th. TD Cowen decreased their price target on Lumentum from $995.00 to $800.00 and set a “hold” rating for the company in a research report on Monday. Finally, Loop Capital increased their price target on Lumentum from $900.00 to $1,400.00 and gave the company a “buy” rating in a research report on Tuesday, May 5th. Fourteen analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $1,012.67.

Lumentum Stock Down 4.4%

The stock’s 50-day moving average price is $872.19 and its two-hundred day moving average price is $708.38. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01. The stock has a market capitalization of $55.93 billion, a P/E ratio of 131.60 and a beta of 1.48.

Lumentum (NASDAQ:LITE) last announced its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.27 by $0.10. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The business had revenue of $808.40 million for the quarter, compared to analysts’ expectations of $810.21 million. During the same period in the previous year, the business posted $0.57 EPS. The firm’s quarterly revenue was up 90.1% compared to the same quarter last year. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, research analysts expect that Lumentum Holdings Inc. will post 6.4 earnings per share for the current fiscal year.

Insider Transactions at Lumentum

In other Lumentum news, insider Vincent Retort sold 3,183 shares of the company’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $3,036,422.85. Following the completion of the sale, the insider owned 89,563 shares of the company’s stock, valued at $85,438,623.85. This represents a 3.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Wajid Ali sold 2,487 shares of the company’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $2,372,473.65. Following the sale, the chief financial officer owned 60,951 shares of the company’s stock, valued at approximately $58,144,206.45. The trade was a 3.92% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 41,260 shares of company stock worth $38,859,220. 0.43% of the stock is owned by insiders.

Hedge Funds Weigh In On Lumentum

Hedge funds and other institutional investors have recently made changes to their positions in the business. Hilton Head Capital Partners LLC purchased a new stake in shares of Lumentum in the 1st quarter worth about $25,000. Sachetta LLC lifted its position in Lumentum by 118.8% during the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock valued at $25,000 after acquiring an additional 19 shares during the period. V Square Quantitative Management LLC purchased a new position in Lumentum during the 4th quarter valued at about $28,000. Truvestments Capital LLC boosted its stake in Lumentum by 300.0% during the fourth quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock worth $28,000 after acquiring an additional 57 shares in the last quarter. Finally, Triumph Capital Management bought a new stake in Lumentum during the fourth quarter worth about $30,000. Institutional investors own 94.05% of the company’s stock.

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.