Lumentum (NASDAQ:LITE) Raised to “Buy” at B. Riley Securities

Lumentum (NASDAQ:LITE) was upgraded by analysts at B. Riley Securities from a “neutral” rating to a “buy” rating in a report released on Wednesday,Benzinga reports. The firm currently has a $526.00 price target on the technology company’s stock, up from their prior price target of $147.00. B. Riley Securities’ price target would indicate a potential downside of 4.63% from the stock’s previous close.

Several other brokerages also recently commented on LITE. Morgan Stanley lifted their target price on shares of Lumentum to $350.00 and gave the stock an “equal weight” rating in a research note on Friday, January 30th. Stifel Nicolaus boosted their price objective on shares of Lumentum to $480.00 and gave the company a “buy” rating in a research report on Wednesday. Susquehanna increased their target price on shares of Lumentum to $550.00 and gave the stock a “positive” rating in a report on Wednesday. Needham & Company LLC boosted their price target on Lumentum to $550.00 and gave the company a “buy” rating in a report on Wednesday. Finally, UBS Group upped their price target on Lumentum from $215.00 to $455.00 and gave the company a “neutral” rating in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $444.94.

Lumentum Trading Up 9.3%

NASDAQ:LITE traded up $47.10 during trading hours on Wednesday, reaching $551.52. The company’s stock had a trading volume of 5,993,730 shares, compared to its average volume of 5,242,785. The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.02 and a current ratio of 0.61. The firm has a market capitalization of $39.10 billion, a price-to-earnings ratio of 169.18 and a beta of 1.51. The firm has a 50-day simple moving average of $363.15 and a 200-day simple moving average of $234.43. Lumentum has a 1 year low of $45.65 and a 1 year high of $558.38.

Lumentum (NASDAQ:LITE) last announced its quarterly earnings data on Tuesday, February 3rd. The technology company reported $1.67 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.41 by $0.26. Lumentum had a return on equity of 17.27% and a net margin of 11.95%.The firm had revenue of $665.50 million for the quarter, compared to analysts’ expectations of $646.74 million. During the same period last year, the firm earned $0.42 earnings per share. The company’s revenue for the quarter was up 65.5% compared to the same quarter last year. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. Research analysts expect that Lumentum will post 0.03 EPS for the current fiscal year.

Insider Buying and Selling at Lumentum

In other Lumentum news, insider Yuen Wupen sold 822 shares of the firm’s stock in a transaction that occurred on Wednesday, November 19th. The shares were sold at an average price of $258.96, for a total transaction of $212,865.12. Following the completion of the transaction, the insider owned 95,077 shares of the company’s stock, valued at approximately $24,621,139.92. This trade represents a 0.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Julia Suzanne Johnson sold 10,000 shares of the business’s stock in a transaction that occurred on Monday, November 10th. The stock was sold at an average price of $270.39, for a total value of $2,703,900.00. Following the completion of the sale, the director directly owned 12,037 shares in the company, valued at approximately $3,254,684.43. This represents a 45.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 17,180 shares of company stock worth $4,551,380 in the last ninety days. 0.43% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lumentum

Institutional investors and hedge funds have recently modified their holdings of the stock. Federated Hermes Inc. grew its stake in shares of Lumentum by 7,168.8% in the third quarter. Federated Hermes Inc. now owns 362,352 shares of the technology company’s stock worth $58,958,000 after acquiring an additional 357,367 shares during the period. FengHe Fund Management Pte. Ltd. bought a new position in Lumentum during the third quarter valued at approximately $71,771,000. Pacer Advisors Inc. bought a new stake in Lumentum in the 3rd quarter worth approximately $1,512,000. Leeward Investments LLC MA raised its stake in Lumentum by 14.8% during the 2nd quarter. Leeward Investments LLC MA now owns 516,431 shares of the technology company’s stock valued at $49,092,000 after buying an additional 66,541 shares during the last quarter. Finally, Braun Stacey Associates Inc. bought a new position in shares of Lumentum during the 3rd quarter valued at $15,125,000. 94.05% of the stock is currently owned by institutional investors.

More Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Company reported strong Q2 results (beat EPS and revenue) and raised near?term outlook — investors are pricing in sustained demand after a sizable quarter and guidance that supports further upside. Lumentum Shares Gap Up Following Strong Earnings
• Positive Sentiment: Multiple broker upgrades and higher price targets: JPMorgan raised its PT to $565 and moved to Overweight; Citigroup raised PT to $560 and reiterated Buy; B. Riley also upgraded the stock — these endorsements help sustain buying momentum. Analyst Upgrades / JPMorgan Citigroup PT Raise
• Positive Sentiment: Macro demand tailwind: coverage highlights that huge capex from hyperscalers is driving outsized demand for optical networking gear — Lumentum is positioned to benefit as a major supplier of lasers and transceivers. Capex Explosion Story
• Positive Sentiment: Street model revisions: Northland published a very bullish FY2027 EPS estimate (large increase vs. prior consensus), signaling some analysts see much higher multi?year earnings power — this can lift forward multiples and investor sentiment. (source: analyst note)
• Neutral Sentiment: Additional context & investor interest: pieces on why Lumentum is a high?growth business and the company’s earnings call transcript are circulating — useful for investors doing deeper due diligence but less immediate market moving than results/upgrades. What Makes Lumentum a High?Growth Business Earnings Call Transcript

About Lumentum

Lumentum Holdings Inc, headquartered in San Jose, California, is a leading provider of photonic technologies that enable high-speed optical communication networks and advanced industrial applications. The company designs and manufactures a broad range of lasers, optical modules and subsystems tailored to the evolving requirements of telecommunications carriers, cloud data centers and enterprise networking.

Its core product portfolio includes tunable and fixed-wavelength laser transmitters, coherent optical engines, transceivers for long-haul, metro and data center interconnects, as well as test and measurement instruments.