Lumentum (NASDAQ:LITE) Trading Down 6% – Here’s Why

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price fell 6% during mid-day trading on Friday . The company traded as low as $781.53 and last traded at $783.8230. 472,745 shares were traded during mid-day trading, a decline of 92% from the average session volume of 5,745,637 shares. The stock had previously closed at $833.64.

Analyst Ratings Changes

A number of brokerages recently issued reports on LITE. Weiss Ratings reissued a “hold (c)” rating on shares of Lumentum in a report on Friday, July 17th. Loop Capital upped their price objective on shares of Lumentum from $900.00 to $1,400.00 and gave the stock a “buy” rating in a research report on Tuesday, May 5th. TD Cowen lowered their target price on shares of Lumentum from $995.00 to $800.00 and set a “hold” rating on the stock in a research note on Monday, July 13th. Morgan Stanley raised their target price on Lumentum from $710.00 to $900.00 and gave the company an “equal weight” rating in a research report on Wednesday, May 6th. Finally, JPMorgan Chase & Co. lifted their price target on Lumentum from $950.00 to $1,130.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Fourteen analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $1,012.67.

Lumentum Price Performance

The stock’s 50 day moving average is $848.84 and its two-hundred day moving average is $725.62. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14. The stock has a market capitalization of $60.35 billion, a PE ratio of 144.96 and a beta of 1.48.

Lumentum (NASDAQ:LITE) last announced its earnings results on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, beating analysts’ consensus estimates of $2.27 by $0.10. The business had revenue of $808.40 million during the quarter, compared to analysts’ expectations of $810.21 million. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The business’s revenue was up 90.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, equities analysts anticipate that Lumentum Holdings Inc. will post 6.42 EPS for the current fiscal year.

Insider Buying and Selling

In other Lumentum news, insider Vincent Retort sold 3,183 shares of Lumentum stock in a transaction on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $3,036,422.85. Following the sale, the insider owned 89,563 shares of the company’s stock, valued at $85,438,623.85. The trade was a 3.43% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 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, insider Yuen Wupen sold 3,210 shares of the company’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $953.95, for a total transaction of $3,062,179.50. Following the sale, the insider directly owned 81,488 shares of the company’s stock, valued at $77,735,477.60. The trade was a 3.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders have sold a total of 41,260 shares of company stock worth $38,859,220 in the last ninety days. Company insiders own 0.43% of the company’s stock.

Institutional Investors Weigh In On Lumentum

Hedge funds and other institutional investors have recently bought and sold shares of the company. Nomura Asset Management Co. Ltd. raised its holdings in Lumentum by 45.0% in the 4th quarter. Nomura Asset Management Co. Ltd. now owns 369,804 shares of the technology company’s stock valued at $136,306,000 after buying an additional 114,714 shares during the period. Andar Capital Management HK Ltd purchased a new stake in shares of Lumentum in the 4th quarter valued at approximately $4,325,000. Whittier Trust Co. raised its position in Lumentum by 21,806.5% in the first quarter. Whittier Trust Co. now owns 74,044 shares of the technology company’s stock valued at $57,183,000 after purchasing an additional 73,706 shares during the period. Mirae Asset Global Investments Co. Ltd. purchased a new stake in shares of Lumentum in the 4th quarter valued at $6,755,000. Finally, Financiere des Professionnels Fonds d investissement inc. acquired a new position in Lumentum during the 1st quarter worth about $2,046,000. 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.