Lumentum (NASDAQ:LITE) Reaches New 1-Year High After Strong Earnings

Lumentum Holdings Inc. (NASDAQ:LITE) shares hit a new 52-week high during trading on Wednesday following a stronger than expected earnings report. The company traded as high as $222.00 and last traded at $226.4420, with a volume of 439275 shares trading hands. The stock had previously closed at $188.36.

The technology company reported $1.10 EPS for the quarter, beating analysts’ consensus estimates of $1.03 by $0.07. Lumentum had a net margin of 1.57% and a negative return on equity of 3.02%. The business had revenue of $533.80 million during the quarter, compared to analysts’ expectations of $525.10 million. During the same period in the prior year, the company earned $0.18 earnings per share. The firm’s revenue was up 58.4% on a year-over-year basis. Lumentum has set its Q2 2026 guidance at 1.300-1.500 EPS.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the stock. KGI Securities began coverage on shares of Lumentum in a report on Monday, August 18th. They issued an “outperform” rating for the company. Barclays reissued an “equal weight” rating and issued a $165.00 price objective on shares of Lumentum in a research note on Monday, October 20th. Wolfe Research restated an “outperform” rating and set a $240.00 target price on shares of Lumentum in a research note on Wednesday. Bank of America upgraded Lumentum from an “underperform” rating to a “neutral” rating and increased their price target for the stock from $78.00 to $135.00 in a research note on Wednesday, August 13th. Finally, Stifel Nicolaus set a $220.00 price objective on Lumentum in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Lumentum presently has a consensus rating of “Moderate Buy” and a consensus target price of $178.27.

Insider Buying and Selling at Lumentum

In related news, SVP Jae Kim sold 4,507 shares of the business’s stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $116.88, for a total transaction of $526,778.16. Following the completion of the sale, the senior vice president owned 33,465 shares of the company’s stock, valued at $3,911,389.20. This represents a 11.87% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Wajid Ali sold 2,526 shares of the stock in a transaction that occurred on Tuesday, August 26th. The stock was sold at an average price of $124.39, for a total value of $314,209.14. Following the sale, the chief financial officer owned 77,087 shares in the company, valued at $9,588,851.93. The trade was a 3.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 18,198 shares of company stock valued at $2,180,887. Corporate insiders own 0.43% of the company’s stock.

Institutional Trading of Lumentum

A number of large investors have recently added to or reduced their stakes in the business. Steigerwald Gordon & Koch Inc. bought a new position in shares of Lumentum in the third quarter valued at $49,000. Cullen Frost Bankers Inc. purchased a new stake in shares of Lumentum during the third quarter valued at $49,000. FNY Investment Advisers LLC acquired a new position in shares of Lumentum in the 2nd quarter valued at $38,000. Skandinaviska Enskilda Banken AB publ acquired a new stake in Lumentum during the 1st quarter worth about $25,000. Finally, MAI Capital Management lifted its stake in Lumentum by 27.0% during the second quarter. MAI Capital Management now owns 452 shares of the technology company’s stock valued at $43,000 after buying an additional 96 shares in the last quarter. 94.05% of the stock is currently owned by institutional investors.

Lumentum Stock Performance

The firm’s 50-day simple moving average is $163.44 and its two-hundred day simple moving average is $115.37. The stock has a market capitalization of $16.16 billion, a PE ratio of 990.73 and a beta of 1.48. The company has a current ratio of 4.37, a quick ratio of 3.18 and a debt-to-equity ratio of 2.26.

Lumentum Company Profile

Lumentum Holdings Inc manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables.