Lumentum (NASDAQ:LITE) Reaches New 52-Week High – Should You Buy?

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price reached a new 52-week high during mid-day trading on Friday. The company traded as high as $1,091.61 and last traded at $1,085.2910, with a volume of 2971179 shares traded. The stock had previously closed at $1,045.78.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on LITE shares. UBS Group set a $820.00 price target on Lumentum in a research report on Wednesday, August 12th. JPMorgan Chase & Co. lifted their price objective on Lumentum from $1,165.00 to $1,280.00 and gave the stock an “overweight” rating in a report on Wednesday, August 12th. Mizuho boosted their price objective on Lumentum from $1,100.00 to $1,140.00 and gave the company an “outperform” rating in a research note on Wednesday, August 12th. Wolfe Research restated an “outperform” rating on shares of Lumentum in a research note on Friday, August 21st. Finally, Deutsche Bank Aktiengesellschaft initiated coverage on shares of Lumentum in a report on Monday, August 31st. They set a “buy” rating and a $1,200.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $1,073.25.

Lumentum Stock Up 3.7%

The company has a current ratio of 1.68, a quick ratio of 1.40 and a debt-to-equity ratio of 0.01. The firm has a market cap of $97.27 billion, a P/E ratio of -13.18 and a beta of 1.53. The stock’s fifty day moving average is $874.94 and its two-hundred day moving average is $854.11.

Lumentum (NASDAQ:LITE) last issued its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share (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 during the quarter, compared to the consensus estimate of $987.70 million. During the same quarter last year, the company posted $0.88 EPS. The company’s revenue for the quarter 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, research analysts anticipate that Lumentum Holdings Inc. will post 19.78 earnings per share for the current year.

Insider Activity at Lumentum

In other news, SVP Jae Kim sold 12,000 shares of the stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $852.58, for a total value of $10,230,960.00. Following the transaction, the senior vice president owned 37,804 shares of the company’s stock, valued at $32,230,934.32. This represents a 24.09% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Vincent Retort sold 38,663 shares of the firm’s stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $852.59, for a total transaction of $32,963,687.17. Following the sale, the insider owned 78,440 shares in the company, valued at approximately $66,877,159.60. This trade represents a 33.02% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 69,954 shares of company stock worth $60,246,211 in the last 90 days. 0.43% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Lumentum

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Jupiter Topco LLC bought a new stake in Lumentum in the 2nd quarter worth approximately $1,621,396,000. Arrowstreet Capital Limited Partnership raised its stake in shares of Lumentum by 18.7% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company’s stock worth $683,661,000 after acquiring an additional 291,591 shares in the last quarter. Situational Awareness LP lifted its holdings in shares of Lumentum by 210.9% in the 4th quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock worth $478,577,000 after acquiring an additional 880,800 shares during the last quarter. Aspex Management HK Ltd purchased a new stake in shares of Lumentum in the 4th quarter valued at $251,363,000. Finally, Amundi boosted its stake in shares of Lumentum by 188.7% in the 2nd quarter. Amundi now owns 658,427 shares of the technology company’s stock valued at $564,970,000 after purchasing an additional 430,355 shares in the last quarter. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

About Lumentum

Lumentum Holdings Inc is a photonics and optical technology company that develops and manufactures products used to transmit, process and manage light. Its solutions support communications networks, data centers, cloud computing infrastructure, industrial applications, and other technology markets that rely on high-speed optical connectivity and precision lasers.

The company’s product portfolio includes optical components and modules for telecommunications and networking, lasers and laser systems, optical amplifiers, wavelength-management products, and photonic subsystems.