Lumentum (NASDAQ:LITE) Shares Down 3.8% – Here’s Why

Lumentum Holdings Inc. (NASDAQ:LITE) was down 3.8% during mid-day trading on Tuesday . The stock traded as low as $903.02 and last traded at $910.81. Approximately 5,149,704 shares traded hands during mid-day trading, a decline of 14% from the average daily volume of 5,985,056 shares. The stock had previously closed at $946.90.

Analysts Set New Price Targets

Several analysts have issued reports on LITE shares. Northland Securities set a $1,000.00 target price on shares of Lumentum in a research note on Monday, April 20th. Bank of America raised their price target on Lumentum to $520.00 and gave the company a “neutral” rating in a report on Wednesday, February 4th. Susquehanna raised their price target on Lumentum from $550.00 to $1,100.00 and gave the company a “positive” rating in a report on Monday, April 20th. Stifel Nicolaus raised their price target on Lumentum from $800.00 to $1,100.00 and gave the company a “buy” rating in a report on Tuesday, May 5th. Finally, Citic Securities raised their price target on Lumentum from $620.00 to $1,186.00 in a report on Monday, May 11th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Lumentum currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,012.43.

Lumentum Trading Down 4.6%

The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01. The stock has a fifty day moving average of $859.32 and a two-hundred day moving average of $581.72. The company has a market capitalization of $66.96 billion, a PE ratio of 159.37 and a beta of 1.53.

Lumentum (NASDAQ:LITE) last released its earnings results on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, beating the consensus estimate of $2.27 by $0.10. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The company had revenue of $808.40 million for the quarter, compared to analyst estimates of $810.21 million. During the same quarter last year, the firm earned $0.57 EPS. The firm’s quarterly revenue was up 90.1% compared to the same quarter last year. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, sell-side analysts anticipate that Lumentum Holdings Inc. will post 6.49 earnings per share for the current fiscal year.

Insider Activity at Lumentum

In related news, 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 directly owned 89,563 shares in the company, valued at $85,438,623.85. This trade represents a 3.43% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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. Also, Director Ian Small sold 4,954 shares of the firm’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 transaction, 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 41,146 shares of company stock worth $37,667,478 over the last three months. Corporate insiders own 0.43% of the company’s stock.

Hedge Funds Weigh In On Lumentum

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. grew its position in Lumentum by 0.6% during the 3rd quarter. Vanguard Group Inc. now owns 7,485,282 shares of the technology company’s stock worth $1,217,930,000 after acquiring an additional 41,975 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its position in Lumentum by 18.7% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company’s stock worth $683,661,000 after acquiring an additional 291,591 shares during the last quarter. Geode Capital Management LLC grew its position in Lumentum by 9.6% during the 4th quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company’s stock worth $521,563,000 after acquiring an additional 123,265 shares during the last quarter. Situational Awareness LP grew its position in Lumentum by 210.9% during the 4th quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock worth $478,577,000 after acquiring an additional 880,800 shares during the last quarter. Finally, Norges Bank bought a new position in Lumentum during the 4th quarter worth approximately $474,495,000. 94.05% of the stock is currently owned by institutional investors.

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.