Lumentum (NASDAQ:LITE) Stock Rated “Outperform” in New Coverage at Sanford C. Bernstein

Sanford C. Bernstein assumed coverage on shares of Lumentum (NASDAQ:LITE) in a research report report published on Wednesday morning, MarketBeat reports. The brokerage issued an outperform rating and a $1,220.00 target price on the technology company’s stock.

LITE has been the subject of several other reports. Zacks Research upgraded shares of Lumentum from a “hold” rating to a “strong-buy” rating in a report on Thursday, August 20th. Needham & Company LLC reissued a “buy” rating and issued a $1,040.00 target price on shares of Lumentum in a research report on Wednesday, August 12th. TD Cowen raised their target price on Lumentum from $800.00 to $820.00 and gave the company a “hold” rating in a research note on Wednesday, August 12th. JPMorgan Chase & Co. upped their price target on Lumentum from $1,165.00 to $1,280.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 12th. Finally, Rosenblatt Securities reissued a “buy” rating and set a $1,300.00 price objective on shares of Lumentum in a research report on Wednesday, September 23rd. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $1,073.25.

Lumentum Stock Performance

Shares of LITE stock opened at $1,085.42 on Wednesday. The firm has a market capitalization of $97.36 billion, a price-to-earnings ratio of -13.20 and a beta of 1.53. The stock has a fifty day moving average of $881.39 and a 200 day moving average of $855.73. Lumentum has a 52 week low of $147.81 and a 52 week high of $1,091.61. The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE) last issued its quarterly earnings data on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, topping the consensus estimate of $2.97 by $0.26. The business had revenue of $1.01 billion during the quarter, compared to analyst estimates of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The company’s revenue for the quarter was up 109.3% on a year-over-year basis. During the same period in the prior year, the business earned $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, research analysts expect that Lumentum will post 19.78 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Michael Hurlston sold 548 shares of the firm’s stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $958.66, for a total transaction of $525,345.68. Following the sale, the chief executive officer owned 186,951 shares of the company’s stock, valued at $179,222,445.66. This trade represents a 0.29% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Yuen Wupen sold 1,500 shares of the business’s stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $827.82, for a total transaction of $1,241,730.00. Following the transaction, the insider directly owned 100,434 shares of the company’s stock, valued at $83,141,273.88. The trade was a 1.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders have sold 94,496 shares of company stock worth $85,978,498 in the last quarter. Insiders own 0.43% of the company’s stock.

Institutional Investors Weigh In On Lumentum

A number of hedge funds have recently added to or reduced their stakes in LITE. CYBER HORNET ETFs LLC lifted its stake in shares of Lumentum by 7.2% during the 2nd quarter. CYBER HORNET ETFs LLC now owns 209 shares of the technology company’s stock worth $179,000 after acquiring an additional 14 shares during the last quarter. Hilltop National Bank increased its stake in Lumentum by 26.8% in the second quarter. Hilltop National Bank now owns 71 shares of the technology company’s stock worth $61,000 after purchasing an additional 15 shares during the period. Sachetta LLC lifted its position in shares of Lumentum by 118.8% during the first quarter. Sachetta LLC now owns 35 shares of the technology company’s stock worth $25,000 after purchasing an additional 19 shares during the last quarter. Toth Financial Advisory Corp increased its stake in Lumentum by 127.3% in the 2nd quarter. Toth Financial Advisory Corp now owns 50 shares of the technology company’s stock worth $43,000 after buying an additional 28 shares during the period. Finally, Burkett Financial Services LLC bought a new stake in Lumentum during the 3rd quarter valued at about $28,000. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Sanford C. Bernstein initiated coverage with an “outperform” rating and a $1,220 price target, citing Lumentum’s exposure to high-growth optical networking and AI infrastructure. Bernstein initiates coverage
• Positive Sentiment: Investors are also focusing on reports of NVIDIA’s approximately $2 billion commitment to expand Lumentum’s capacity and support joint development of data-center optics. The arrangement could improve revenue visibility as AI clusters require faster optical connections. NVIDIA AI infrastructure article
• Positive Sentiment: Market coverage has identified Lumentum as a potential “structural winner” from the shift toward optical networking in AI data centers. The company’s photonics products may benefit from rising data traffic, inference workloads and demand for high-speed connectivity. AI structural winners article
• Positive Sentiment: A Zacks analysis describes Lumentum as a strong growth stock, supporting the broader momentum narrative. Its latest reported quarter also showed revenue up 109.3% year over year, with EPS exceeding analyst expectations and fiscal first-quarter 2027 guidance of $4.05 to $4.35. Zacks growth stock analysis
• Neutral Sentiment: Seeking Alpha characterized LITE as a speculative buy, forecasting substantial future EPS growth but warning that the current valuation requires sustained revenue growth, margin expansion and strong execution. Lumentum AI network analysis
• Negative Sentiment: CFO Wajid Ali sold 24,542 shares worth approximately $25.7 million, reducing his direct stake by 24.64%. The transaction was made under a pre-arranged Rule 10b5-1 plan, which reduces its significance as a discretionary bearish signal. Other insider sales by Yuen Wupen were considerably smaller relative to his remaining holdings. Lumentum CFO SEC filing

Lumentum Company Profile

Lumentum Holdings Inc is a photonics and optical technology company that develops and manufactures products used to transmit, process and manage light. Its solutions support communications networks, data centers, cloud computing infrastructure, industrial applications, and other technology markets that rely on high-speed optical connectivity and precision lasers.

The company’s product portfolio includes optical components and modules for telecommunications and networking, lasers and laser systems, optical amplifiers, wavelength-management products, and photonic subsystems.