Lumentum (NASDAQ:LITE) Stock Price Down 4.1% – Here’s Why

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price dropped 4.1% during mid-day trading on Monday . The company traded as low as $791.00 and last traded at $793.2860. Approximately 1,661,920 shares traded hands during mid-day trading, a decline of 72% from the average daily volume of 5,947,013 shares. The stock had previously closed at $826.88.

Wall Street Analyst Weigh In

A number of research firms have recently commented on LITE. TD Cowen initiated coverage on Lumentum in a research note on Thursday, March 12th. They set a “hold” rating and a $675.00 target price on the stock. Stifel Nicolaus lifted their price objective on shares of Lumentum to $800.00 and gave the stock a “buy” rating in a research report on Monday, March 2nd. Weiss Ratings reiterated a “hold (c-)” rating on shares of Lumentum in a research note on Monday, December 29th. Mizuho raised their price target on shares of Lumentum to $645.00 and gave the stock an “outperform” rating in a research note on Tuesday, February 17th. Finally, Barclays upped their price objective on Lumentum to $750.00 and gave the company an “equal weight” rating in a research note on Tuesday, March 3rd. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, Lumentum presently has an average rating of “Moderate Buy” and an average target price of $575.06.

Lumentum Trading Down 6.7%

The company has a market cap of $55.10 billion, a P/E ratio of 238.24 and a beta of 1.38. The company has a quick ratio of 0.45, a current ratio of 0.61 and a debt-to-equity ratio of 0.06. The firm’s 50-day moving average price is $622.91 and its 200-day moving average price is $392.93.

Lumentum (NASDAQ:LITE) last issued 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. Lumentum had a net margin of 11.95% and a return on equity of 17.27%. The business had revenue of $665.50 million for the quarter, compared to analysts’ expectations of $646.74 million. During the same quarter in the previous year, the firm posted $0.42 EPS. The business’s revenue for the quarter was up 65.5% compared to the same quarter last year. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. As a group, equities research analysts expect that Lumentum Holdings Inc. will post 0.03 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Vincent Retort sold 45,026 shares of the firm’s stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $591.32, for a total value of $26,624,774.32. Following the completion of the transaction, the insider directly owned 102,455 shares in the company, valued at approximately $60,583,690.60. This trade represents a 30.53% 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 the SEC website. Also, CFO Wajid Ali sold 5,302 shares of the business’s stock in a transaction that occurred on Friday, February 27th. The shares were sold at an average price of $691.13, for a total transaction of $3,664,371.26. Following the transaction, the chief financial officer directly owned 66,287 shares of the company’s stock, valued at approximately $45,812,934.31. This represents a 7.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 65,775 shares of company stock worth $38,851,343 over the last quarter. 0.43% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in LITE. Federated Hermes Inc. raised its stake in Lumentum by 7,168.8% in the third quarter. Federated Hermes Inc. now owns 362,352 shares of the technology company’s stock valued at $58,958,000 after purchasing an additional 357,367 shares in the last quarter. FengHe Fund Management Pte. Ltd. bought a new position in shares of Lumentum in the 3rd quarter worth $71,771,000. Pacer Advisors Inc. bought a new position in shares of Lumentum in the 3rd quarter worth $1,512,000. Headwater Capital Co Ltd purchased a new stake in shares of Lumentum during the 3rd quarter valued at $20,339,000. Finally, China Universal Asset Management Co. Ltd. bought a new stake in shares of Lumentum during the 3rd quarter worth $1,383,000. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

Lumentum Company Profile

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.