Lumentum (NASDAQ:LITE) Shares Up 10.2% Following Analyst Upgrade

Lumentum Holdings Inc. (NASDAQ:LITE) shot up 10.2% during trading on Thursday after Morgan Stanley raised their price target on the stock to $595.00. Morgan Stanley currently has an equal weight rating on the stock. Lumentum traded as high as $775.00 and last traded at $772.13. 7,496,791 shares traded hands during trading, an increase of 34% from the average session volume of 5,607,331 shares. The stock had previously closed at $700.81.

Other equities research analysts have also issued reports about the company. Northland Securities set a $350.00 target price on Lumentum in a report on Wednesday, December 3rd. Mizuho lifted their price target on shares of Lumentum to $645.00 and gave the company an “outperform” rating in a research report on Tuesday, February 17th. Bank of America boosted their price objective on shares of Lumentum to $520.00 and gave the stock a “neutral” rating in a research note on Wednesday, February 4th. TD Cowen started coverage on shares of Lumentum in a report on Thursday, March 12th. They set a “hold” rating and a $675.00 price objective for the company. Finally, JPMorgan Chase & Co. raised their target price on shares of Lumentum to $565.00 and gave the company an “overweight” rating in a research note on Wednesday, February 4th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, Lumentum presently has a consensus rating of “Moderate Buy” and a consensus target price of $575.06.

Insider Buying and Selling

In other news, insider Yuen Wupen sold 3,157 shares of the stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $538.00, for a total value of $1,698,466.00. Following the completion of the transaction, the insider directly owned 88,439 shares of the company’s stock, valued at approximately $47,580,182. This represents a 3.45% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Vincent Retort sold 3,441 shares of the firm’s stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $545.78, for a total value of $1,878,028.98. Following the transaction, the insider owned 95,975 shares of the company’s stock, valued at $52,381,235.50. This trade represents a 3.46% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 65,775 shares of company stock valued at $38,851,343 over the last ninety days. Company insiders own 0.43% of the company’s stock.

Lumentum News Roundup

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum highlighted new AI data‑center products and raised its long‑term ambitions, citing a $2 billion quarterly revenue run‑rate opportunity presented at OFC; this underpins optimism about durable AI optics demand. Why Lumentum Is A Buy Despite The Run-Up
• Positive Sentiment: Broker commentary and coverage linked Lumentum directly to the AI buildout (NVIDIA spend and hyperscale migration to optical), supporting strong demand expectations for transceivers, lasers and OCS/CPO modules. Lumentum’s OCS & CPO Strength Reflects Broader Demand
• Positive Sentiment: Asset‑manager and industry notes point to impending multi‑year supply tightness for optical components, which would favor suppliers like Lumentum and support pricing/pipeline visibility. “Multi-Year Shortages” Coming for Optical Suppliers
• Positive Sentiment: Some sell‑side support: Rosenblatt reaffirmed a buy and set a $900 target, reinforcing upside narratives among growth‑oriented analysts. Benzinga Rosenblatt Note
• Neutral Sentiment: Short‑term momentum and higher trading volume have driven multi‑day rallies as funds rebalance for S&P 500 inclusion — a technical flow that can amplify moves but may reverse after the rebalance window closes. Lumentum Jumps Ahead of S&P 500 Inclusion
• Neutral Sentiment: Mainstream coverage explains the rally as a mix of product news and positioning ahead of index inclusion; positive headlines are already being priced in, raising the importance of execution vs. expectations. MSN Coverage
• Negative Sentiment: Morgan Stanley set an equal‑weight rating with a $595 price target (materially below current levels), and some earnings‑estimate revision dynamics noted by analysts could cap near‑term upside if growth/profitability doesn’t accelerate as expected. Benzinga Morgan Stanley Note

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in LITE. EverSource Wealth Advisors LLC boosted its stake in shares of Lumentum by 363.9% in the 3rd quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company’s stock valued at $27,000 after purchasing an additional 131 shares in the last quarter. V Square Quantitative Management LLC acquired a new stake in shares of Lumentum during the 4th quarter worth about $28,000. Truvestments Capital LLC lifted its holdings in Lumentum by 300.0% during the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock valued at $28,000 after purchasing an additional 57 shares during the last quarter. Triumph Capital Management bought a new position in Lumentum during the 4th quarter valued at about $30,000. Finally, Danske Bank A S acquired a new position in Lumentum in the third quarter valued at about $33,000. 94.05% of the stock is owned by institutional investors.

Lumentum Price Performance

The company has a debt-to-equity ratio of 0.06, a current ratio of 0.61 and a quick ratio of 0.45. The stock has a market capitalization of $55.13 billion, a P/E ratio of 236.85 and a beta of 1.38. The company’s 50 day simple moving average is $526.57 and its two-hundred day simple moving average is $341.46.

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

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.