Lumentum (NASDAQ:LITE) Stock Rating Upgraded by Zacks Research

Lumentum (NASDAQ:LITE) was upgraded by research analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a note issued to investors on Thursday,Zacks.com reports.

LITE has been the topic of a number of other research reports. Morgan Stanley increased their price target on Lumentum from $900.00 to $1,000.00 and gave the stock an “equal weight” rating in a research report on Wednesday, August 12th. Citigroup reaffirmed a “buy” rating on shares of Lumentum in a research note on Wednesday, August 12th. Citic Securities increased their target price on Lumentum from $620.00 to $1,186.00 in a research report on Monday, May 11th. Craig Hallum lifted their price target on shares of Lumentum from $900.00 to $1,150.00 in a research note on Wednesday, May 6th. Finally, Stifel Nicolaus boosted their price target on shares of Lumentum from $800.00 to $1,100.00 and gave the stock a “buy” rating in a report on Tuesday, May 5th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $1,044.67.

Lumentum Trading Down 1.4%

Shares of Lumentum stock opened at $866.71 on Thursday. The firm has a 50-day simple moving average of $809.76 and a two-hundred day simple moving average of $790.21. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.40 and a current ratio of 1.68. Lumentum has a fifty-two week low of $115.89 and a fifty-two week high of $1,085.68. The company has a market cap of $77.74 billion, a P/E ratio of -10.54 and a beta of 1.50.

Lumentum (NASDAQ:LITE) last posted its earnings results on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, beating analysts’ consensus estimates of $2.97 by $0.26. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%.The firm had revenue of $1.01 billion for the quarter, compared to analysts’ expectations of $987.70 million. During the same period last year, the firm earned $0.88 EPS. The company’s quarterly revenue was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, equities analysts predict that Lumentum will post 19.76 earnings per share for the current fiscal year.

Insider Transactions at Lumentum

In related news, SVP Jae Kim sold 1,904 shares of the business’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $827.82, for a total transaction of $1,576,169.28. Following the completion of the sale, the senior vice president directly owned 42,096 shares in the company, valued at approximately $34,847,910.72. The trade was a 4.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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, insider Yuen Wupen sold 1,500 shares of the stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $827.82, for a total value of $1,241,730.00. Following the completion of the transaction, the insider directly owned 100,434 shares of the company’s stock, valued at approximately $83,141,273.88. This represents a 1.47% decrease in their ownership of the stock. 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. In the last ninety days, insiders have sold 16,352 shares of company stock worth $14,315,562. 0.43% of the stock is owned by insiders.

Institutional Investors Weigh In On Lumentum

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Jupiter Topco LLC acquired a new stake in shares of Lumentum in the second quarter valued at about $1,621,396,000. Arrowstreet Capital Limited Partnership lifted its stake in shares of Lumentum by 8,579.2% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company’s stock worth $254,350,000 after buying an additional 1,545,199 shares in the last quarter. Norges Bank acquired a new position in Lumentum during the fourth quarter worth about $474,495,000. Value Aligned Research Advisors LLC acquired a new position in Lumentum during the fourth quarter worth about $432,062,000. Finally, Situational Awareness LP grew its stake in 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 acquiring an additional 880,800 shares in the last quarter. Institutional investors and hedge funds own 94.05% of the company’s stock.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Northland Securities raised its Lumentum earnings forecasts substantially. The firm lifted its FY2027 EPS estimate to $19.81 from $14.97, with quarterly estimates now ranging from $3.81 in Q1 to $6.20 in Q4. Northland maintained an “Outperform” rating and a $1,200 price target, supporting the bullish case for continued earnings growth. Northland Securities analyst estimate report
• Positive Sentiment: Lumentum is being highlighted as an AI-infrastructure beneficiary. Analysts and financial publications point to rising demand for optical networking equipment as data centers expand to support artificial intelligence workloads. Lumentum is positioned across the optics and networking portions of that buildout. Beyond Chipmakers: 4 Stocks to Buy That Power AI Data Center Expansion
• Positive Sentiment: LITE was added to Zacks’ Rank #1 momentum-stock list. The designation may attract momentum-oriented investors and reinforces the stock’s strong recent performance. Best Momentum Stocks to Buy for August 21st
• Neutral Sentiment: A report on data-center construction emphasized the enormous fiber requirements of new AI facilities, a potential long-term demand driver for optical-component suppliers such as Lumentum. However, the article provided limited company-specific financial updates. A Single Meta Data Center Will Require “8 Million Miles of Fiber”
• Negative Sentiment: Valuation concerns could be limiting further upside. A Seeking Alpha analysis characterized Lumentum as increasingly expensive after its sharp rally. With the shares near their 52-week high and the company still reporting a negative net margin, some investors may be taking profits despite the favorable growth outlook. Lumentum: It’s Getting Expensive

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.