Lumentum (NASDAQ:LITE) Shares Down 9.9% – Here’s What Happened

Lumentum Holdings Inc. (NASDAQ:LITE) shares were down 9.9% during mid-day trading on Monday . The company traded as low as $833.70 and last traded at $835.03. Approximately 4,887,950 shares traded hands during trading, a decline of 12% from the average session volume of 5,569,411 shares. The stock had previously closed at $927.03.

Analyst Upgrades and Downgrades

Several analysts have recently commented on LITE shares. Needham & Company LLC reiterated a “buy” rating and issued a $1,040.00 price target on shares of Lumentum in a research report on Wednesday, August 12th. Raymond James Financial restated an “outperform” rating and set a $1,036.00 price objective on shares of Lumentum in a research report on Wednesday, August 12th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $1,300.00 target price on shares of Lumentum in a research note on Wednesday, August 12th. Deutsche Bank Aktiengesellschaft began coverage on Lumentum in a report on Monday, August 31st. They set a “buy” rating and a $1,200.00 target price on the stock. Finally, Zacks Research raised Lumentum from a “hold” rating to a “strong-buy” rating in a research report on Thursday, August 20th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $1,053.83.

Lumentum Price Performance

The company has a market capitalization of $74.90 billion, a price-to-earnings ratio of -10.16 and a beta of 1.53. The company has a fifty day simple moving average of $829.50 and a two-hundred day simple moving average of $828.36. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.40 and a current ratio of 1.68.

Lumentum (NASDAQ:LITE) last posted its quarterly earnings data on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.97 by $0.26. The business had revenue of $1.01 billion for the quarter, compared to analysts’ expectations 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 revenue was up 109.3% on a year-over-year basis. During the same quarter last year, the firm earned $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, research analysts anticipate that Lumentum Holdings Inc. will post 19.78 earnings per share for the current year.

Insider Activity at Lumentum

In related news, CEO Michael E. Hurlston sold 548 shares of the business’s stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $958.66, for a total value of $525,345.68. Following the completion of the sale, the chief executive officer directly owned 186,951 shares in the company, valued at approximately $179,222,445.66. The trade was a 0.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Vincent Retort sold 38,663 shares of the company’s stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $852.59, for a total transaction of $32,963,687.17. Following the transaction, the insider directly owned 78,440 shares of the company’s stock, valued at $66,877,159.60. This trade represents a 33.02% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 66,147 shares of company stock worth $56,741,571. 0.43% of the stock is owned by insiders.

Institutional Trading of Lumentum

Several institutional investors have recently made changes to their positions in LITE. California State Teachers Retirement System boosted its holdings in Lumentum by 112,343.2% in the second quarter. California State Teachers Retirement System now owns 92,237,160 shares of the technology company’s stock valued at $79,145,018,000 after acquiring an additional 92,155,130 shares during the last quarter. Jupiter Topco LLC acquired a new stake in Lumentum during the second quarter worth about $1,621,396,000. Arrowstreet Capital Limited Partnership raised its holdings in shares of Lumentum by 18.7% in the 4th 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 period. Amundi raised its holdings in shares of Lumentum by 188.7% in the 2nd quarter. Amundi now owns 658,427 shares of the technology company’s stock worth $564,970,000 after purchasing an additional 430,355 shares during the period. Finally, Geode Capital Management LLC lifted its stake in shares of Lumentum by 9.6% in the 4th quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company’s stock valued at $521,563,000 after purchasing an additional 123,265 shares in the last quarter. 94.05% of the stock is owned by hedge funds and other institutional investors.

About Lumentum

Lumentum Holdings Inc (NASDAQ: LITE) designs and manufactures optical and photonic products used to transmit, process and control light. Its portfolio includes optical components, modules, subsystems, lasers and photonic integrated circuits that support communications networks, data centers, cloud infrastructure and industrial applications.

The company also supplies technologies for consumer electronics and 3D sensing, including laser-based products used in applications such as depth sensing and facial recognition.