Lumentum (NASDAQ:LITE) Shares Down 5.8% on Insider Selling

Lumentum Holdings Inc. (NASDAQ:LITE) traded down 5.8% during mid-day trading on Tuesday after an insider sold shares in the company. The company traded as low as $937.64 and last traded at $992.37. 7,504,979 shares were traded during trading, an increase of 24% from the average session volume of 6,031,040 shares. The stock had previously closed at $1,053.09.

Specifically, SVP Jae Kim sold 1,933 shares of the business’s stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $950.99, for a total value of $1,838,263.67. Following the transaction, the senior vice president owned 35,114 shares in the company, valued at approximately $33,393,062.86. The trade was a 5.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Brian Lillie sold 11,951 shares of the firm’s stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $981.64, for a total value of $11,731,579.64. Following the sale, the director owned 13,959 shares of the company’s stock, valued at approximately $13,702,712.76. This trade represents a 46.13% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In other Lumentum news, Director Brian Lillie sold 49 shares of Lumentum stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $1,004.34, for a total transaction of $49,212.66. Following the sale, the director directly owned 13,910 shares in the company, valued at $13,970,369.40. The trade was a 0.35% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on LITE shares. BNP Paribas Exane increased their target price on Lumentum from $1,040.00 to $1,300.00 in a research note on Wednesday, May 6th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Lumentum in a report on Tuesday, April 21st. TD Cowen increased their price objective on shares of Lumentum from $875.00 to $995.00 and gave the company a “hold” rating in a research note on Wednesday, May 6th. Bank of America raised their price objective on shares of Lumentum to $520.00 and gave the stock a “neutral” rating in a report on Wednesday, February 4th. Finally, Citigroup boosted their target price on shares of Lumentum from $800.00 to $1,100.00 and gave the stock a “buy” rating in a research report on Tuesday, April 21st. Thirteen analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $1,012.43.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum was added to the Nasdaq-100, which can trigger buying from index funds and boost visibility with large institutional investors. Lumentum Joins the Nasdaq-100 Index®, Achieving New Milestone in Global Growth
• Positive Sentiment: Lumentum was upgraded to Zacks Rank #1 (Strong Buy), reflecting improving earnings expectations and reinforcing momentum-buying interest. What Makes Lumentum (LITE) a New Strong Buy Stock
• Positive Sentiment: Commentary highlighted that Lumentum’s Components business is accelerating, with AI optics demand surging and key products sold out, suggesting stronger revenue potential ahead. Lumentum’s Components Business Accelerates: More Upside Ahead?
• Positive Sentiment: Northland Securities raised earnings estimates for Lumentum, adding to the view that the company’s profit outlook is improving. Lumentum stock report
• Neutral Sentiment: Recent coverage also notes that Lumentum’s strong rally has pushed the stock to fresh highs, which can attract momentum buyers but also raise valuation questions.
• Neutral Sentiment: Insider selling was reported this week, but the transactions were made under pre-arranged trading plans, so they appear less likely to signal a major change in fundamentals.

Lumentum Trading Down 2.8%

The stock has a market cap of $77.94 billion, a P/E ratio of 185.52 and a beta of 1.53. The firm’s 50 day simple moving average is $804.16 and its two-hundred day simple moving average is $532.16. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE) last posted its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, beating the consensus estimate of $2.27 by $0.10. The business had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The company’s quarterly revenue was up 90.1% on a year-over-year basis. During the same period in the previous year, the business posted $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, equities research analysts predict that Lumentum Holdings Inc. will post 6.49 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Lumentum

Several institutional investors have recently made changes to their positions in the stock. Sachetta LLC grew its stake in Lumentum by 118.8% during the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock worth $25,000 after buying an additional 19 shares during the last quarter. Hilton Head Capital Partners LLC bought a new stake in Lumentum in the first quarter valued at $25,000. Abel Hall LLC lifted its stake in Lumentum by 5.5% in the first quarter. Abel Hall LLC now owns 693 shares of the technology company’s stock valued at $487,000 after buying an additional 36 shares during the last quarter. Checchi Capital Advisers LLC boosted its holdings in shares of Lumentum by 5.1% during the first quarter. Checchi Capital Advisers LLC now owns 790 shares of the technology company’s stock valued at $555,000 after acquiring an additional 38 shares during the period. Finally, 180 Wealth Advisors LLC grew its position in shares of Lumentum by 2.9% during the first quarter. 180 Wealth Advisors LLC now owns 1,553 shares of the technology company’s stock worth $1,092,000 after acquiring an additional 44 shares during the last quarter. 94.05% of the stock is owned by institutional investors.

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.