Lumentum (NASDAQ:LITE) Downgraded by Zacks Research to “Hold”

Zacks Research lowered shares of Lumentum (NASDAQ:LITE) from a strong-buy rating to a hold rating in a research note released on Monday,Zacks.com reports.

LITE has been the subject of a number of other reports. Morgan Stanley increased their target price on shares of Lumentum to $595.00 and gave the company an “equal weight” rating in a report on Wednesday, March 18th. Needham & Company LLC increased their target price on shares of Lumentum to $850.00 and gave the company a “buy” rating in a report on Wednesday, March 4th. TD Cowen increased their target price on shares of Lumentum from $675.00 to $875.00 and gave the company a “hold” rating in a report on Friday, April 10th. Citigroup increased their target price on shares of Lumentum to $560.00 and gave the company a “buy” rating in a report on Thursday, February 5th. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Lumentum in a report on Monday, December 29th. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $629.44.

Lumentum Stock Performance

NASDAQ LITE traded down $2.81 during trading hours on Monday, hitting $849.98. 1,566,711 shares of the stock were exchanged, compared to its average volume of 5,988,534. The company has a market cap of $60.69 billion, a price-to-earnings ratio of 260.24 and a beta of 1.38. Lumentum has a 12-month low of $49.13 and a 12-month high of $960.00. The stock has a 50-day moving average of $688.49 and a 200 day moving average of $427.13. The company has a quick ratio of 0.45, a current ratio of 0.61 and a debt-to-equity ratio of 0.06.

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

Insider Buying and Selling at Lumentum

In other news, Director Penny Herscher sold 4,849 shares of the firm’s stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $535.48, for a total transaction of $2,596,542.52. Following the completion of the transaction, the director directly owned 6,057 shares of the company’s stock, valued at $3,243,402.36. This trade represents a 44.46% decrease in their position. The sale was disclosed in a document filed 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 that occurred on Friday, February 27th. The stock was sold at an average price of $691.13, for a total transaction of $3,664,371.26. Following the transaction, the chief financial officer directly owned 66,287 shares of the company’s stock, valued at approximately $45,812,934.31. This trade represents a 7.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 65,775 shares of company stock valued at $38,851,343. Company insiders own 0.43% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of LITE. Arrowstreet Capital Limited Partnership boosted its position in Lumentum by 8,579.2% during the third quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company’s stock worth $254,350,000 after acquiring an additional 1,545,199 shares during the last quarter. Norges Bank acquired a new stake in Lumentum during the fourth quarter worth approximately $474,495,000. Value Aligned Research Advisors LLC acquired a new stake in Lumentum during the fourth quarter worth approximately $432,062,000. Situational Awareness LP boosted its position in Lumentum by 210.9% during the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock worth $478,577,000 after acquiring an additional 880,800 shares during the last quarter. Finally, Assenagon Asset Management S.A. boosted its position in Lumentum by 707.0% during the fourth quarter. Assenagon Asset Management S.A. now owns 994,478 shares of the technology company’s stock worth $366,555,000 after acquiring an additional 871,249 shares during the last quarter. 94.05% of the stock is owned by hedge funds and other institutional investors.

Key Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Aletheia Capital sharply raised its price target (from $500 to $1,225) and kept a Buy rating, citing Lumentum’s positioning in AI optics and strong demand — a catalyst supporting continued upside. Why Lumentum (LITE) Made the Best Performing AI Stocks List
• Positive Sentiment: Street consensus remains constructive: analysts collectively rate LITE a “Moderate Buy,” reinforcing demand-side confidence from the sell-side. Lumentum Given Consensus Rating of “Moderate Buy”
• Positive Sentiment: Multiple Zacks pieces highlight Lumentum as a beneficiary of the AI-infrastructure boom (helping the S&P rebound), and one comparison favors LITE over nLIGHT due to stronger AI-driven demand and revenue growth — reinforcing the narrative that hyperscaler spending is lifting LITE. S&P ETF Rebound nLIGHT vs Lumentum Buy 3 AI Infra Giants
• Neutral Sentiment: Media commentary notes LITE’s massive run (reports cite +1,500%+ over the last year), which raises attention but is largely descriptive rather than new fundamental news. Up 1,539% Over the Past Year Up 1,600% Over the Past Year
• Negative Sentiment: Zacks Research downgraded Lumentum from “strong-buy” to “hold,” a near-term negative signal that could cap momentum if other sell-side firms follow. Zacks Downgrades Lumentum to Hold
• Negative Sentiment: Technical analysts warn LITE looks overbought (Wyckoff-based commentary) and could see a pullback from current highs—adds short-term risk despite strong fundamentals. Soaring Lumentum Stock Gets Overbought

Lumentum Company Profile

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.