Lumentum (NASDAQ:LITE) Stock Falls 1.8% on Analyst Downgrade

Lumentum Holdings Inc. (NASDAQ:LITE) traded down 1.8% on Tuesday after UBS Group lowered their price target on the stock from $960.00 to $686.00. UBS Group currently has a neutral rating on the stock. Lumentum traded as low as $570.41 and last traded at $585.57. 4,732,362 shares were traded during trading, a decline of 15% from the average daily volume of 5,588,185 shares. The stock had previously closed at $596.16.

Other analysts also recently issued reports about the company. Stifel Nicolaus set a $806.00 price target on Lumentum in a research report on Monday, November 2nd. Stonex Financial upgraded shares of Lumentum to a “strong-buy” rating in a research report on Monday, October 26th. Mizuho set a $1,132.00 price objective on shares of Lumentum in a research report on Monday, November 2nd. Susquehanna lowered their target price on shares of Lumentum from $1,100.00 to $950.00 and set a “positive” rating for the company in a report on Tuesday, November 3rd. Finally, Bank of America lowered their target price on shares of Lumentum from $1,100.00 to $1,000.00 and set a “neutral” rating for the company in a report on Wednesday, August 12th. Two research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $1,053.17.

Insider Buying and Selling

In other news, SVP Jae Kim sold 12,000 shares of the business’s stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $852.58, for a total transaction of $10,230,960.00. Following the completion of the sale, the senior vice president directly owned 37,804 shares of the company’s stock, valued at approximately $32,230,934.32. The trade was a 24.09% 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 this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 1,500 shares of the company’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $827.82, for a total transaction of $1,241,730.00. Following the completion of the transaction, the insider owned 100,434 shares in the company, valued at approximately $83,141,273.88. The trade was a 1.47% decrease in their ownership of the stock. 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. Insiders have sold a total of 94,496 shares of company stock worth $85,978,498 over the last ninety days. Corporate insiders own 0.28% of the company’s stock.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Sanford C. Bernstein raised its price target to $700 from $635 and assigned an “outperform” rating, implying about 19.5% upside from the cited $585.94 share price. Analyst rating information
• Neutral Sentiment: Brodsky & Smith announced an investigation involving Lumentum. The notice does not disclose specific findings, so its implications for the company remain unclear. Shareholder investigation notice
• Negative Sentiment: UBS cut its price target to $686 from $960 and shifted to a “neutral” rating. The revised target remains above the cited share price, but the sizable reduction signals a more cautious outlook. Analyst rating information
• Negative Sentiment: Coverage of the Marvell transaction says the all-stock offer’s implied value has fallen as Marvell shares declined, reducing the acquisition consideration for Lumentum shareholders. That makes the deal’s value more uncertain and has weighed on LITE in recent trading. Acquisition consideration analysis

Hedge Funds Weigh In On Lumentum

A number of institutional investors have recently modified their holdings of LITE. Bogart Wealth LLC lifted its holdings in shares of Lumentum by 1,415.4% in the 3rd quarter. Bogart Wealth LLC now owns 197 shares of the technology company’s stock worth $191,000 after buying an additional 184 shares during the period. Prasad Wealth Partners LLC purchased a new position in shares of Lumentum during the third quarter valued at $412,000. Public Sector Pension Investment Board increased its stake in shares of Lumentum by 97.2% during the third quarter. Public Sector Pension Investment Board now owns 28,972 shares of the technology company’s stock valued at $28,274,000 after buying an additional 14,280 shares during the period. Edgestream Partners L.P. bought a new stake in shares of Lumentum in the third quarter valued at about $805,000. Finally, HighTower Advisors LLC raised its holdings in shares of Lumentum by 20.9% in the third quarter. HighTower Advisors LLC now owns 19,309 shares of the technology company’s stock valued at $18,754,000 after acquiring an additional 3,334 shares in the last quarter. 94.05% of the stock is owned by hedge funds and other institutional investors.

Lumentum Price Performance

The firm has a fifty day moving average of $888.15 and a two-hundred day moving average of $802.77. The stock has a market capitalization of $53.11 billion, a P/E ratio of -7.44 and a beta of 1.64. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.61 and a quick ratio of 1.40.

Lumentum (NASDAQ:LITE) last posted its earnings results on Monday, November 2nd. The technology company reported $4.57 EPS for the quarter, beating analysts’ consensus estimates of $4.22 by $0.35. Lumentum had a negative net margin of 175.82% and a positive return on equity of 28.85%. The business had revenue of $1.26 billion for the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter last year, the firm posted $1.10 EPS. The company’s revenue for the quarter was up 136.5% on a year-over-year basis. On average, analysts predict that Lumentum Holdings Inc. will post 19.93 EPS for the current year.

About Lumentum

Lumentum Holdings Inc. develops and manufactures optical and photonic products used in communications networks and industrial applications. Its offerings include optical components, modules and lasers that help transmit and process data across telecommunications and data center networks. The company also supplies lasers and related technologies for industrial uses, including precision manufacturing and semiconductor production. Its products serve customers in markets around the world. Lumentum became an independent public company in 2015 through a spin-off from JDSU, now Viavi Solutions.