Lumentum Holdings Inc. (NASDAQ:LITE) Stock Has Average Price Target of $1,078.75

Lumentum Holdings Inc. (NASDAQ:LITE) has been assigned an average recommendation of “Moderate Buy” from the twenty-three ratings firms that are covering the company, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, five have issued a hold recommendation, sixteen have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $1,078.75.

LITE has been the subject of several recent research reports. Sanford C. Bernstein initiated coverage on shares of Lumentum in a research report on Wednesday, September 30th. They set an “outperform” rating and a $1,220.00 price target for the company. Mizuho lifted their price objective on shares of Lumentum from $1,100.00 to $1,140.00 and gave the company an “outperform” rating in a research report on Wednesday, August 12th. Citigroup boosted their target price on shares of Lumentum from $1,200.00 to $1,400.00 and gave the company a “buy” rating in a research note on Monday, September 28th. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Lumentum in a research report on Monday, August 31st. They issued a “buy” rating and a $1,200.00 target price for the company. Finally, Wolfe Research restated an “outperform” rating on shares of Lumentum in a research note on Friday, August 21st.

Key Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: AI infrastructure demand is outpacing Lumentum’s manufacturing capacity, with shortages for certain optical products potentially lasting through 2028. The supply-demand imbalance supports strong order visibility, pricing power and elevated margins. Lumentum Can’t Keep Up With AI Demand—and Its Stock Is Surging
• Positive Sentiment: Management’s outlook suggests a multiyear growth opportunity as AI data centers shift from copper to high-speed optical networking. One analysis said Lumentum may be unable to meet about 70% of demand for some products through next year and highlighted management’s target of $40 in adjusted EPS by fiscal 2028. Lumentum: At The Point Of A Potential Upside Breakout
• Positive Sentiment: Analyst and market commentary characterized LITE as having a multiyear runway for growth, while Zacks added the stock to its Rank #1 Strong Buy list. The demand signal also lifted sentiment toward other optical-networking companies. Evercore ISI: LITE has a multiyear runway for growth ahead
• Neutral Sentiment: The bullish demand outlook follows a period of substantial gains and elevated investor expectations. Lumentum’s opportunity depends on expanding production successfully and converting its backlog into cash flow and earnings.
• Negative Sentiment: Optical stocks experienced broad profit-taking and sector-wide selling recently, underscoring valuation and execution risks after their sharp advances. Investors may also remain cautious about whether current AI demand can justify LITE’s high valuation. Optics Stocks Tumble as Profit Taking Cuts Into Big Yearly Gains

Insiders Place Their Bets

In related news, insider Vincent Retort sold 38,663 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $852.59, for a total value of $32,963,687.17. Following the sale, the insider directly owned 78,440 shares in the company, valued at $66,877,159.60. This trade represents a 33.02% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 1,500 shares of Lumentum 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 sale, the insider directly owned 100,434 shares in the company, valued at $83,141,273.88. The trade was a 1.47% decrease in their position. 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 three months, insiders sold 94,496 shares of company stock worth $85,978,498. 0.43% of the stock is owned by company insiders.

Institutional Investors Weigh In On Lumentum

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Burkett Financial Services LLC acquired a new stake in Lumentum during the third quarter worth approximately $28,000. Hilton Head Capital Partners LLC acquired a new position in shares of Lumentum in the first quarter valued at approximately $25,000. Sachetta LLC increased its stake in shares of Lumentum by 118.8% during the first quarter. Sachetta LLC now owns 35 shares of the technology company’s stock worth $25,000 after purchasing an additional 19 shares during the period. Meeder Asset Management Inc. bought a new position in shares of Lumentum during the second quarter worth approximately $40,000. Finally, Keating Financial Advisory Services Inc. acquired a new stake in Lumentum during the 2nd quarter worth approximately $41,000. 94.05% of the stock is currently owned by institutional investors.

Lumentum Trading Up 5.2%

Shares of NASDAQ LITE opened at $1,103.35 on Wednesday. Lumentum has a 12-month low of $147.81 and a 12-month high of $1,143.00. The company has a market cap of $99.94 billion, a price-to-earnings ratio of -13.42 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 stock’s 50 day simple moving average is $923.68 and its 200 day simple moving average is $869.95.

Lumentum (NASDAQ:LITE) last issued its quarterly earnings data on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, topping 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 period in the prior year, the business 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. Equities research analysts expect that Lumentum will post 19.78 EPS for the current year.

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.