Lumentum (NASDAQ:LITE) Shares Down 4.2% – Here’s What Happened

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price fell 4.2% during trading on Monday . The stock traded as low as $761.53 and last traded at $768.15. 3,673,767 shares traded hands during mid-day trading, a decline of 37% from the average session volume of 5,876,869 shares. The stock had previously closed at $802.01.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the company. Susquehanna lifted their price target on Lumentum from $550.00 to $1,100.00 and gave the stock a “positive” rating in a report on Monday, April 20th. Morgan Stanley raised their target price on Lumentum from $710.00 to $900.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 6th. Citic Securities boosted their target price on Lumentum from $620.00 to $1,186.00 in a research note on Monday, May 11th. Needham & Company LLC reaffirmed a “buy” rating and issued a $1,040.00 price target on shares of Lumentum in a report on Tuesday, June 9th. Finally, Citigroup increased their price target on shares of Lumentum from $800.00 to $1,100.00 and gave the company a “buy” rating in a research note on Tuesday, April 21st. Fourteen investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $1,012.67.

Lumentum Price Performance

The stock has a 50-day moving average price of $882.31 and a 200 day moving average price of $700.26. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97. The firm has a market cap of $59.76 billion, a price-to-earnings ratio of 142.25 and a beta of 1.48.

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

Insider Buying and Selling

In other news, Director Ian Small sold 4,954 shares of the 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 directly owned 21,008 shares of the company’s stock, valued at approximately $18,236,414.56. This represents a 19.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Vincent Retort sold 3,183 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The stock was 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 ownership of the stock. 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. 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 Inflows and Outflows

A number of institutional investors have recently bought and sold shares of LITE. Hilton Head Capital Partners LLC purchased a new stake in shares of Lumentum in the first quarter valued at about $25,000. Sachetta LLC grew its holdings 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 buying an additional 19 shares during the last quarter. V Square Quantitative Management LLC purchased a new position in shares of Lumentum during the fourth quarter worth about $28,000. Truvestments Capital LLC increased its position in Lumentum by 300.0% in the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock valued at $28,000 after acquiring an additional 57 shares during the period. Finally, Triumph Capital Management acquired a new position in Lumentum in the 4th quarter valued at about $30,000. 94.05% of the stock is currently owned by institutional investors and hedge funds.

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.