Lumentum (NASDAQ:LITE) Trading Up 3.9% – Should You Buy?

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price was up 3.9% during trading on Monday . The company traded as high as $998.50 and last traded at $957.24. Approximately 5,236,470 shares traded hands during trading, a decline of 13% from the average daily volume of 6,005,174 shares. The stock had previously closed at $921.56.

Analysts Set New Price Targets

A number of equities analysts have recently commented on LITE shares. JPMorgan Chase & Co. boosted their price objective on Lumentum from $950.00 to $1,130.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. Citigroup boosted their price objective on Lumentum from $800.00 to $1,100.00 and gave the stock a “buy” rating in a research report on Tuesday, April 21st. Craig Hallum boosted their price objective on Lumentum from $900.00 to $1,150.00 in a research report on Wednesday, May 6th. Northland Securities boosted their price objective on Lumentum from $1,000.00 to $1,200.00 and gave the stock an “outperform” rating in a research report on Wednesday, June 3rd. Finally, Stifel Nicolaus boosted their price objective on Lumentum from $800.00 to $1,100.00 and gave the stock a “buy” rating in a research report on Tuesday, May 5th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $1,021.95.

Lumentum Stock Performance

The firm has a 50 day moving average of $903.17 and a two-hundred day moving average of $644.68. The stock has a market cap of $67.68 billion, a PE ratio of 161.11 and a beta of 1.47. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97.

Lumentum (NASDAQ:LITE) last issued its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, beating analysts’ consensus estimates of $2.27 by $0.10. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The company had revenue of $808.40 million during the quarter, compared to analysts’ expectations of $810.21 million. During the same quarter in the previous year, the business earned $0.57 earnings per share. The firm’s revenue for the quarter was up 90.1% on a year-over-year basis. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. Research analysts predict that Lumentum Holdings Inc. will post 6.4 EPS for the current fiscal year.

Insider Buying and Selling

In other Lumentum news, Director Ian Small sold 4,954 shares of the business’s stock in a transaction that occurred on 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 owned 21,008 shares in the company, valued at approximately $18,236,414.56. The trade was a 19.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Vincent Retort sold 3,183 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $953.95, for a total value of $3,036,422.85. Following the completion of the sale, the insider owned 89,563 shares of the company’s stock, valued at approximately $85,438,623.85. This represents a 3.43% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 41,260 shares of company stock valued at $38,859,220 in the last 90 days. Company insiders own 0.43% of the company’s stock.

Institutional Investors Weigh In On Lumentum

Several large investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its stake in shares of Lumentum by 0.6% during the third quarter. Vanguard Group Inc. now owns 7,485,282 shares of the technology company’s stock worth $1,217,930,000 after purchasing an additional 41,975 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its stake in shares of Lumentum by 18.7% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company’s stock worth $683,661,000 after purchasing an additional 291,591 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of Lumentum by 9.6% during the fourth quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company’s stock worth $521,563,000 after purchasing an additional 123,265 shares during the last quarter. Situational Awareness LP raised its stake in shares of Lumentum by 210.9% during the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock worth $478,577,000 after purchasing an additional 880,800 shares during the last quarter. Finally, Norges Bank purchased a new stake in shares of Lumentum during the fourth quarter worth approximately $474,495,000. 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.