Lumentum (NASDAQ:LITE) Stock Price Down 9.8% – Time to Sell?

Lumentum Holdings Inc. (NASDAQ:LITE) shares traded down 9.8% during trading on Monday. The stock traded as low as $980.00 and last traded at $995.41. 6,405,490 shares changed hands during trading, an increase of 17% from the average daily volume of 5,497,861 shares. The stock had previously closed at $1,103.35.

Wall Street Analyst Weigh In

LITE has been the topic of several recent research reports. Zacks Research raised Lumentum from a “hold” rating to a “strong-buy” rating in a research report on Thursday, August 20th. Sanford C. Bernstein started coverage on Lumentum in a research note on Wednesday, September 30th. They set an “outperform” rating and a $1,220.00 price objective for the company. UBS Group set a $820.00 target price on shares of Lumentum in a research report on Wednesday, August 12th. Stifel Nicolaus lifted their price objective on Lumentum from $1,100.00 to $1,232.00 and gave the stock a “buy” rating in a research report on Monday, October 5th. Finally, Evercore assumed coverage on shares of Lumentum in a research note on Monday, August 31st. They set an “outperform” rating and a $1,100.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $1,078.75.

Lumentum Stock Down 9.8%

The business’s fifty day moving average is $923.68 and its two-hundred day moving average is $870.95. The stock has a market cap of $90.17 billion, a price-to-earnings ratio of -12.11 and a beta of 1.53. The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE) last released its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, topping analysts’ consensus estimates of $2.97 by $0.26. The firm had revenue of $1.01 billion for the quarter, compared to analyst estimates of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The business’s quarterly revenue was up 109.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Equities analysts forecast that Lumentum Holdings Inc. will post 19.78 earnings per share for the current fiscal year.

Insider Activity at Lumentum

In other Lumentum news, CFO Wajid Ali sold 24,542 shares of the stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $1,048.50, for a total value of $25,732,287.00. Following the transaction, the chief financial officer directly owned 75,074 shares in the company, valued at $78,715,089. This represents a 24.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 307 shares of the stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $945.00, for a total transaction of $290,115.00. Following the completion of the transaction, the insider owned 108,320 shares in the company, valued at $102,362,400. This represents a 0.28% 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. In the last 90 days, insiders have sold 94,496 shares of company stock valued at $85,978,498. 0.43% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lumentum

Several institutional investors have recently added to or reduced their stakes in LITE. GK Wealth Management LLC lifted its position in Lumentum by 10.5% in the third quarter. GK Wealth Management LLC now owns 716 shares of the technology company’s stock valued at $695,000 after purchasing an additional 68 shares during the period. Riversedge Advisors LLC increased its stake in Lumentum by 14.7% in the 3rd quarter. Riversedge Advisors LLC now owns 327 shares of the technology company’s stock valued at $318,000 after purchasing an additional 42 shares in the last quarter. Wedmont Private Capital raised its holdings in Lumentum by 93.3% during the third quarter. Wedmont Private Capital now owns 3,065 shares of the technology company’s stock worth $3,214,000 after purchasing an additional 1,479 shares during the last quarter. GAMMA Investing LLC boosted its position in Lumentum by 8.9% during the third quarter. GAMMA Investing LLC now owns 3,623 shares of the technology company’s stock worth $3,519,000 after purchasing an additional 295 shares in the last quarter. Finally, Farther Finance Advisors LLC boosted its position in Lumentum by 5.4% during the third quarter. Farther Finance Advisors LLC now owns 3,296 shares of the technology company’s stock worth $3,202,000 after purchasing an additional 169 shares in the last quarter. Institutional investors and hedge funds own 94.05% of the company’s stock.

About Lumentum

Lumentum Holdings Inc is a photonics and optical technology company that develops and manufactures products used to transmit, process and manage light. Its solutions support communications networks, data centers, cloud computing infrastructure, industrial applications, and other technology markets that rely on high-speed optical connectivity and precision lasers.

The company’s product portfolio includes optical components and modules for telecommunications and networking, lasers and laser systems, optical amplifiers, wavelength-management products, and photonic subsystems.