Lumentum (NASDAQ:LITE) Stock Price Down 6.9% – Time to Sell?

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price fell 6.9% on Monday . The stock traded as low as $326.59 and last traded at $327.1810. 2,172,882 shares traded hands during trading, a decline of 52% from the average session volume of 4,503,906 shares. The stock had previously closed at $351.42.

Analyst Upgrades and Downgrades

LITE has been the subject of a number of research reports. Zacks Research raised Lumentum from a “hold” rating to a “strong-buy” rating in a report on Tuesday, December 2nd. Stifel Nicolaus set a $220.00 price objective on shares of Lumentum in a report on Wednesday, November 5th. Wolfe Research reissued an “outperform” rating and set a $240.00 target price on shares of Lumentum in a report on Wednesday, November 5th. Rosenblatt Securities upped their price target on shares of Lumentum to $380.00 and gave the company a “buy” rating in a report on Thursday, December 4th. Finally, B. Riley increased their price target on Lumentum from $83.00 to $147.00 and gave the stock a “neutral” rating in a research report on Wednesday, November 5th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, Lumentum currently has an average rating of “Moderate Buy” and a consensus price target of $230.25.

Lumentum Price Performance

The company has a current ratio of 1.37, a quick ratio of 1.02 and a debt-to-equity ratio of 2.77. The stock has a 50-day moving average price of $316.21 and a 200 day moving average price of $198.85. The stock has a market capitalization of $24.10 billion, a price-to-earnings ratio of 228.10 and a beta of 1.51.

Lumentum (NASDAQ:LITE) last issued its quarterly earnings results on Tuesday, November 4th. The technology company reported $1.10 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.03 by $0.07. Lumentum had a return on equity of 4.62% and a net margin of 6.11%.The company had revenue of $533.80 million for the quarter, compared to the consensus estimate of $525.10 million. During the same quarter in the prior year, the business posted $0.18 earnings per share. Lumentum’s revenue for the quarter was up 58.4% on a year-over-year basis. Lumentum has set its Q2 2026 guidance at 1.300-1.500 EPS. As a group, equities research analysts expect that Lumentum Holdings Inc. will post 0.03 earnings per share for the current year.

Insider Buying and Selling at Lumentum

In other news, Director Isaac Hosojiro Harris sold 7,200 shares of the business’s stock in a transaction dated Friday, November 7th. The shares were sold at an average price of $243.32, for a total transaction of $1,751,904.00. Following the completion of the sale, the director owned 9,764 shares of the company’s stock, valued at $2,375,776.48. The trade was a 42.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Julia Suzanne Johnson sold 10,000 shares of the company’s stock in a transaction dated Monday, November 10th. The stock was sold at an average price of $270.39, for a total transaction of $2,703,900.00. Following the transaction, the director owned 12,037 shares of the company’s stock, valued at approximately $3,254,684.43. This trade represents a 45.38% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 28,612 shares of company stock valued at $7,317,398. Insiders own 0.43% of the company’s stock.

Institutional Investors Weigh In On Lumentum

A number of large investors have recently modified their holdings of LITE. Arrowstreet Capital Limited Partnership boosted its position in Lumentum by 8,579.2% during the third quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company’s stock worth $254,350,000 after acquiring an additional 1,545,199 shares during the last quarter. Hood River Capital Management LLC boosted its holdings in shares of Lumentum by 82.1% during the 2nd quarter. Hood River Capital Management LLC now owns 2,206,453 shares of the technology company’s stock worth $209,745,000 after purchasing an additional 994,551 shares during the last quarter. Norges Bank purchased a new stake in shares of Lumentum in the second quarter valued at approximately $82,983,000. Assenagon Asset Management S.A. increased its holdings in shares of Lumentum by 707.0% in the fourth quarter. Assenagon Asset Management S.A. now owns 994,478 shares of the technology company’s stock valued at $366,555,000 after purchasing an additional 871,249 shares during the last quarter. Finally, Holocene Advisors LP purchased a new position in Lumentum during the third quarter worth approximately $136,401,000. Hedge funds and other institutional investors own 94.05% of the company’s stock.

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.