Lumentum (NASDAQ:LITE) Shares Down 3% – Time to Sell?

Lumentum Holdings Inc. (NASDAQ:LITE) was down 3% during trading on Thursday. The stock traded as low as $800.00 and last traded at $869.54. 7,550,707 shares changed hands during trading, an increase of 37% from the average daily volume of 5,502,280 shares. The stock had previously closed at $896.33.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Analysts retain an overall constructive outlook: 23 analysts set an average price target of $1,078.75, substantially above the recently reported share price. 23 analysts set USD 1,078.75 target for Lumentum stock
• Positive Sentiment: Stifel raised its Lumentum price target from $1,100 to $1,232, signaling confidence in the company’s exposure to optical networking and AI data-center demand. Stifel raised target for Lumentum stock
• Positive Sentiment: A long-term investment analysis highlights Lumentum’s transformation from a cyclical laser supplier into a major photonics beneficiary of AI infrastructure growth, supporting the longer-term bull case. The Long-Term Investment Case for Lumentum
• Neutral Sentiment: A separate article discusses Lumentum as a leading photonics company supplying critical components for AI networks, but it does not identify a new financial catalyst. What is Lumentum, the top pick in photonics?
• Negative Sentiment: Zacks downgraded Lumentum from Strong Buy to Hold, reducing near-term buying support and contributing to the stock’s weakness. Zacks downgrades Lumentum to Hold
• Negative Sentiment: Optical stocks, including Lumentum, Coherent and Applied Optoelectronics, are extending their slide as investors shift toward defensive sectors and reassess the pace and funding of AI data-center investment. Optical Stocks Extend Slide as Money Rotates Into Defensives
• Negative Sentiment: Broader concerns about AI funding caused another selloff across optical networking suppliers, indicating that current trading is being driven more by sector risk than by Lumentum-specific operating results. AI Funding Fears Hit Optical Stocks

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on LITE shares. TD Cowen raised their price objective on shares of Lumentum from $800.00 to $820.00 and gave the company a “hold” rating in a report on Wednesday, August 12th. UBS Group set a $820.00 target price on shares of Lumentum in a research note on Wednesday, August 12th. Stifel Nicolaus boosted their target price on shares of Lumentum from $1,100.00 to $1,232.00 and gave the stock a “buy” rating in a research note on Monday, October 5th. Rosenblatt Securities reaffirmed a “buy” rating and set a $1,300.00 price objective on shares of Lumentum in a research report on Monday, October 5th. Finally, Needham & Company LLC reissued a “buy” rating and set a $1,040.00 target price on shares of Lumentum in a research report on Wednesday, August 12th. Sixteen research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $1,078.75.

Lumentum Price Performance

The stock has a 50-day moving average price of $932.17 and a 200 day moving average price of $875.26. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.68 and a quick ratio of 1.40. The firm has a market cap of $78.77 billion, a price-to-earnings ratio of -10.58 and a beta of 1.53.

Lumentum (NASDAQ:LITE) last posted its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, beating the consensus estimate of $2.97 by $0.26. The business had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $987.70 million. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%. The business’s quarterly revenue was up 109.3% on a year-over-year basis. During the same period in the previous year, the business earned $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, equities research analysts forecast that Lumentum Holdings Inc. will post 19.79 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CFO Wajid Ali sold 24,542 shares of the firm’s stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $1,048.50, for a total transaction of $25,732,287.00. Following the transaction, the chief financial officer directly owned 75,074 shares in the company, valued at approximately $78,715,089. This trade represents a 24.64% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 307 shares of Lumentum stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $945.00, for a total transaction of $290,115.00. Following the completion of the transaction, the insider directly owned 108,320 shares in the company, valued at $102,362,400. The trade was a 0.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 94,496 shares of company stock valued at $85,978,498. 0.28% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of LITE. State of Alaska Department of Revenue increased its holdings in Lumentum by 10.1% in the third quarter. State of Alaska Department of Revenue now owns 8,396 shares of the technology company’s stock valued at $8,154,000 after buying an additional 773 shares in the last quarter. Formuepleje A S acquired a new stake in shares of Lumentum during the 3rd quarter valued at approximately $443,000. Turtle Creek Wealth Advisors LLC boosted its stake in shares of Lumentum by 12.2% during the 3rd quarter. Turtle Creek Wealth Advisors LLC now owns 321 shares of the technology company’s stock worth $312,000 after acquiring an additional 35 shares in the last quarter. VMS Asset Management Limited purchased a new stake in shares of Lumentum during the 3rd quarter worth approximately $8,874,000. Finally, Mather Group LLC. grew its holdings in shares of Lumentum by 473.5% in the 3rd quarter. Mather Group LLC. now owns 195 shares of the technology company’s stock worth $190,000 after acquiring an additional 161 shares during the period. 94.05% of the stock is owned by hedge funds and other institutional investors.

About Lumentum

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.