Lumentum (NASDAQ:LITE) Shares Gap Down – What’s Next?

Lumentum Holdings Inc. (NASDAQ:LITE) shares gapped down prior to trading on Tuesday . The stock had previously closed at $624.84, but opened at $597.00. Lumentum shares last traded at $641.6970, with a volume of 2,422,500 shares changing hands.

Analysts Set New Price Targets

LITE has been the topic of a number of research analyst reports. JPMorgan Chase & Co. increased their price objective on shares of Lumentum to $565.00 and gave the company an “overweight” rating in a research note on Wednesday, February 4th. Northland Securities set a $350.00 target price on shares of Lumentum in a research note on Wednesday, December 3rd. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Lumentum in a research report on Monday, December 29th. Stifel Nicolaus lifted their price target on Lumentum to $800.00 and gave the stock a “buy” rating in a research note on Monday, March 2nd. Finally, B. Riley Financial raised Lumentum from a “neutral” rating to a “buy” rating and boosted their price objective for the company from $147.00 to $526.00 in a report on Wednesday, February 4th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, Lumentum currently has a consensus rating of “Moderate Buy” and a consensus price target of $550.38.

Lumentum Trading Down 1.1%

The company has a debt-to-equity ratio of 0.06, a current ratio of 0.61 and a quick ratio of 0.45. The business has a fifty day moving average of $515.37 and a 200-day moving average of $335.29. The stock has a market capitalization of $44.13 billion, a price-to-earnings ratio of 189.63 and a beta of 1.38.

Lumentum (NASDAQ:LITE) last issued its quarterly earnings results on Tuesday, February 3rd. The technology company reported $1.67 earnings per share for the quarter, beating analysts’ consensus estimates of $1.41 by $0.26. The company had revenue of $665.50 million during the quarter, compared to the consensus estimate of $646.74 million. Lumentum had a net margin of 11.95% and a return on equity of 17.27%. Lumentum’s revenue was up 65.5% on a year-over-year basis. During the same period in the prior year, the company earned $0.42 EPS. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. On average, equities analysts anticipate that Lumentum Holdings Inc. will post 0.03 earnings per share for the current fiscal year.

Insider Buying and Selling at Lumentum

In other Lumentum news, CFO Wajid Ali sold 5,302 shares of Lumentum stock in a transaction that occurred on Friday, February 27th. The shares were sold at an average price of $691.13, for a total value of $3,664,371.26. Following the transaction, the chief financial officer owned 66,287 shares in the company, valued at approximately $45,812,934.31. The trade was a 7.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Vincent Retort sold 3,441 shares of the company’s stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $545.78, for a total value of $1,878,028.98. Following the completion of the transaction, the insider directly owned 95,975 shares in the company, valued at $52,381,235.50. This represents a 3.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 65,775 shares of company stock valued at $38,851,343. 0.43% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lumentum

Several hedge funds have recently bought and sold shares of the business. Arrowstreet Capital Limited Partnership grew its stake in Lumentum by 8,579.2% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company’s stock valued at $254,350,000 after acquiring an additional 1,545,199 shares in the last quarter. Norges Bank purchased a new stake in shares of Lumentum in the fourth quarter worth approximately $474,495,000. Value Aligned Research Advisors LLC purchased a new position in Lumentum during the fourth quarter valued at approximately $432,062,000. Hood River Capital Management LLC increased its stake in Lumentum by 82.1% in the 2nd quarter. Hood River Capital Management LLC now owns 2,206,453 shares of the technology company’s stock valued at $209,745,000 after buying an additional 994,551 shares during the period. Finally, Situational Awareness LP lifted its position in Lumentum by 210.9% in the 4th quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock worth $478,577,000 after buying an additional 880,800 shares in the last quarter. 94.05% of the stock is 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.