Lumentum (NASDAQ:LITE) Trading 3.2% Higher – Still a Buy?

Shares of Lumentum Holdings Inc. (NASDAQ:LITE) shot up 3.2% during mid-day trading on Monday . The company traded as high as $766.00 and last traded at $728.95. 7,326,905 shares changed hands during trading, an increase of 23% from the average session volume of 5,953,863 shares. The stock had previously closed at $706.35.

Lumentum News Roundup

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: S&P 500 inclusion boosts index?fund flows and visibility, supporting recent momentum and institutional demand. Read More.
• Positive Sentiment: Multiple analyst upgrades and big price?target hikes drove the stock to an all?time high as investors reacted to stronger outlook and investor?briefing takeaways. Read More.
• Positive Sentiment: Coverage highlighting photonics’ role in scaling AI (and NVIDIA’s large investments into photonics names) casts Lumentum as a strategic beneficiary if photonics adoption accelerates. That narrative is a major near?term catalyst. Read More.
• Positive Sentiment: Morgan Stanley raised its price target to $595 after an investor briefing, calling its readout “incrementally positive” (even while keeping an Equal Weight rating), which reinforces analyst support for the rally. Read More.
• Neutral Sentiment: Recent short?interest reports in the data feed show large changes but display zero/NaN values and inconsistent days?to?cover figures — the published numbers appear unreliable and should be treated cautiously.
• Negative Sentiment: Analyst and media coverage warns valuations are stretched after the rapid run?up; if NVIDIA?related enthusiasm cools or growth expectations disappoint, Lumentum could face a sharp pullback. Read More.

Wall Street Analyst Weigh In

LITE has been the subject of several analyst reports. Citigroup increased their price objective on Lumentum to $560.00 and gave the stock a “buy” rating in a research note on Thursday, February 5th. Stifel Nicolaus increased their price target on Lumentum to $800.00 and gave the company a “buy” rating in a research report on Monday, March 2nd. B. Riley Financial raised shares of Lumentum from a “neutral” rating to a “buy” rating and lifted their price objective for the stock from $147.00 to $526.00 in a report on Wednesday, February 4th. Bank of America upped their target price on shares of Lumentum to $520.00 and gave the stock a “neutral” rating in a research note on Wednesday, February 4th. Finally, UBS Group increased their target price on shares of Lumentum from $215.00 to $455.00 and gave the company a “neutral” rating in a report on Wednesday, February 4th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, Lumentum presently has a consensus rating of “Moderate Buy” and an average price target of $575.06.

Lumentum Trading Down 3.1%

The company has a market cap of $55.49 billion, a PE ratio of 238.40 and a beta of 1.38. The firm’s 50 day moving average is $558.75 and its 200 day moving average is $360.20. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.61 and a quick ratio of 0.45.

Lumentum (NASDAQ:LITE) last posted its earnings results on Tuesday, February 3rd. The technology company reported $1.67 EPS for the quarter, topping the consensus estimate of $1.41 by $0.26. The business had revenue of $665.50 million during the quarter, compared to analysts’ expectations of $646.74 million. Lumentum had a return on equity of 17.27% and a net margin of 11.95%.The firm’s revenue was up 65.5% on a year-over-year basis. During the same period in the previous year, the business earned $0.42 earnings per share. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. On average, equities analysts anticipate that Lumentum Holdings Inc. will post 0.03 earnings per share for the current year.

Insider Buying and Selling at Lumentum

In other Lumentum news, insider Yuen Wupen sold 3,157 shares of the company’s stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $538.00, for a total transaction of $1,698,466.00. Following the completion of the sale, the insider directly owned 88,439 shares in the company, valued at $47,580,182. This represents a 3.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Wajid Ali sold 5,302 shares of the firm’s stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $691.13, for a total value of $3,664,371.26. Following the transaction, the chief financial officer directly owned 66,287 shares in the company, valued at $45,812,934.31. This trade represents a 7.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 65,775 shares of company stock worth $38,851,343 over the last 90 days. Company insiders own 0.43% of the company’s stock.

Hedge Funds Weigh In On Lumentum

Large investors have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC boosted its holdings in shares of Lumentum by 363.9% during the 3rd quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company’s stock valued at $27,000 after purchasing an additional 131 shares during the last quarter. V Square Quantitative Management LLC bought a new stake in shares of Lumentum in the fourth quarter worth about $28,000. Truvestments Capital LLC lifted its position in shares of Lumentum by 300.0% in the fourth quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock worth $28,000 after buying an additional 57 shares in the last quarter. Triumph Capital Management purchased a new stake in shares of Lumentum in the fourth quarter worth about $30,000. Finally, Danske Bank A S bought a new position in Lumentum during the third quarter valued at approximately $33,000. 94.05% of the stock is owned by hedge funds and other institutional investors.

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.