Lumentum (NASDAQ:LITE) Issues Q1 2027 Earnings Guidance

Lumentum (NASDAQ:LITE) updated its first quarter 2027 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 4.050-4.350 for the period, compared to the consensus estimate of 3.550. The company issued revenue guidance of $1.2 billion-$1.3 billion, compared to the consensus revenue estimate of $1.2 billion.

Lumentum Trading Up 0.9%

Shares of Lumentum stock traded up $7.08 during trading on Tuesday, reaching $820.59. The company’s stock had a trading volume of 5,196,410 shares, compared to its average volume of 5,711,799. The company has a market cap of $63.84 billion, a price-to-earnings ratio of 151.96 and a beta of 1.50. The firm’s 50-day moving average is $813.40 and its two-hundred day moving average is $760.16. Lumentum has a 52-week low of $111.20 and a 52-week high of $1,085.68. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01.

Analysts Set New Price Targets

LITE has been the subject of a number of recent analyst reports. Weiss Ratings lowered shares of Lumentum from a “hold (c)” rating to a “hold (c-)” rating in a report on Wednesday, August 5th. Citic Securities upped their price objective on shares of Lumentum from $620.00 to $1,186.00 in a report on Monday, May 11th. UBS Group lifted their price objective on Lumentum from $455.00 to $960.00 and gave the company a “neutral” rating in a research report on Wednesday, May 6th. Barclays lifted their price target on Lumentum from $750.00 to $1,000.00 and gave the company an “equal weight” rating in a research report on Wednesday, May 6th. Finally, Loop Capital boosted their target price on shares of Lumentum from $900.00 to $1,400.00 and gave the company a “buy” rating in a report on Tuesday, May 5th. Fourteen investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $1,012.67.

Insider Transactions at Lumentum

In related news, Director Ian Small sold 4,954 shares of Lumentum stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $868.07, for a total value of $4,300,418.78. Following the completion of the sale, the director directly owned 21,008 shares in the company, valued at approximately $18,236,414.56. This trade represents a 19.08% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Vincent Retort sold 3,183 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $3,036,422.85. Following the transaction, the insider owned 89,563 shares in the company, valued at approximately $85,438,623.85. This trade represents a 3.43% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 23,827 shares of company stock valued at $22,051,069. Insiders own 0.43% of the company’s stock.

Key Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Analysts say Lumentum is well positioned for fourth-quarter growth because AI infrastructure is increasing demand for optical networking equipment. The earnings report and outlook could reinforce the company’s role as a key supplier to expanding data-center networks. Lumentum well-positioned for Q4 on AI-infrastructure-driven growth, say analysts
• Positive Sentiment: Goldman Sachs argues that the next phase of the AI investment cycle is shifting from processors to the optical and fiber equipment needed to connect AI systems. That rotation places Lumentum within a favored segment of the AI infrastructure trade. Goldman Sachs Says These Are AI’s Next Big Winners
• Positive Sentiment: Market commentary describes Lumentum’s components as crucial to the ongoing AI data-center buildout, with no clear evidence that skepticism about data-center construction is slowing current business momentum. Cory Johnson on LITE’s role in the AI buildout
• Neutral Sentiment: Retail traders are comparing LITE with Coherent, Applied Optoelectronics and IPG Photonics as AI data centers accelerate the transition from copper to optical connectivity. The comparison increases visibility for Lumentum but also highlights intense competition within photonics. LITE versus other photonics stocks
• Negative Sentiment: Investors remain concerned that Lumentum’s elevated valuation leaves little room for disappointment, making the upcoming results and guidance particularly important. AI-optics stocks also recently cooled as traders took profits ahead of earnings. Is Lumentum’s valuation too rich? AI optics stocks cool ahead of earnings

Institutional Investors Weigh In On Lumentum

Hedge funds have recently bought and sold shares of the business. Truvestments Capital LLC grew its stake in shares of Lumentum by 300.0% in the 4th 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 bought a new position in shares of Lumentum in the 4th quarter valued at about $30,000. Danske Bank A S bought a new position in shares of Lumentum in the 3rd quarter valued at about $33,000. Zions Bancorporation National Association UT purchased a new position in Lumentum in the fourth quarter worth about $42,000. Finally, Brown Brothers Harriman & Co. bought a new stake in Lumentum during the fourth quarter worth approximately $44,000. Hedge funds and other institutional investors own 94.05% of the company’s stock.

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.