Lumentum (NASDAQ:LITE) Shares Down 2% – Here’s Why

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price was down 2% during mid-day trading on Wednesday. The stock traded as low as $1,082.44 and last traded at $1,111.07. Approximately 3,367,625 shares changed hands during mid-day trading, a decline of 39% from the average session volume of 5,494,736 shares. The stock had previously closed at $1,133.40.

Analysts Set New Price Targets

Several brokerages have commented on LITE. Morgan Stanley boosted their target price on shares of 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 increased their price target on shares of Lumentum from $1,200.00 to $1,400.00 and gave the company a “buy” rating in a report on Monday, September 28th. JPMorgan Chase & Co. raised their price objective on shares of Lumentum from $1,165.00 to $1,280.00 and gave the company an “overweight” rating in a research note on Wednesday, August 12th. Mizuho boosted their price objective on shares of Lumentum from $1,100.00 to $1,140.00 and gave the stock an “outperform” rating in a report on Wednesday, August 12th. Finally, Wolfe Research restated an “outperform” rating on shares of Lumentum in a research report on Friday, August 21st. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Lumentum currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,078.75.

Lumentum Stock Down 2.0%

The firm has a market cap of $99.66 billion, a price-to-earnings ratio of -13.52 and a beta of 1.53. 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 50 day moving average price of $898.61 and a 200-day moving average price of $863.51.

Lumentum (NASDAQ:LITE) last issued its quarterly earnings data 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 negative net margin of 230.15% and a positive return on equity of 26.34%. The firm had revenue of $1.01 billion for the quarter, compared to analysts’ expectations of $987.70 million. During the same period in the prior year, the company earned $0.88 EPS. The firm’s revenue was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. On average, equities analysts forecast that Lumentum Holdings Inc. will post 19.78 EPS for the current year.

Insider Activity at Lumentum

In other Lumentum news, insider Yuen Wupen sold 307 shares of the stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $945.00, for a total transaction of $290,115.00. Following the sale, the insider owned 108,320 shares in the company, valued at approximately $102,362,400. This represents a 0.28% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Wajid Ali sold 24,542 shares of the business’s stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $1,048.50, for a total value of $25,732,287.00. Following the completion of the transaction, the chief financial officer directly owned 75,074 shares of the company’s stock, valued at approximately $78,715,089. This trade represents a 24.64% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 94,496 shares of company stock worth $85,978,498 over the last quarter. Company insiders own 0.43% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. MRA Advisory Group grew its holdings in shares of Lumentum by 13.0% during the third quarter. MRA Advisory Group now owns 2,296 shares of the technology company’s stock worth $2,230,000 after buying an additional 264 shares in the last quarter. Congress Asset Management Co. purchased a new stake in Lumentum in the 3rd quarter worth approximately $69,072,000. Eastern Bank raised its holdings in Lumentum by 12,875.5% in the 3rd quarter. Eastern Bank now owns 28,546 shares of the technology company’s stock valued at $27,726,000 after acquiring an additional 28,326 shares during the last quarter. Polaris Financial Partners purchased a new position in shares of Lumentum during the 3rd quarter worth $1,407,000. Finally, CX Institutional purchased a new position in shares of Lumentum during the 3rd quarter worth $548,000. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

Lumentum Company Profile

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.