Lumentum (NASDAQ:LITE – Get Free Report) had its price objective raised by equities research analysts at Morgan Stanley from $520.00 to $595.00 in a research report issued on Wednesday,Benzinga reports. The brokerage currently has an “equal weight” rating on the technology company’s stock. Morgan Stanley’s price target would indicate a potential downside of 15.90% from the company’s previous close.
Several other equities analysts have also issued reports on the company. Bank of America lifted their price target on Lumentum to $520.00 and gave the company a “neutral” rating in a research note on Wednesday, February 4th. Rosenblatt Securities reiterated a “buy” rating and issued a $900.00 target price on shares of Lumentum in a research report on Wednesday. JPMorgan Chase & Co. boosted their target price on Lumentum to $565.00 and gave the stock an “overweight” rating in a research note on Wednesday, February 4th. Citigroup increased their target price on shares of Lumentum to $560.00 and gave the stock a “buy” rating in a report on Thursday, February 5th. Finally, Mizuho raised their price target on shares of Lumentum to $645.00 and gave the company an “outperform” rating in a research note on Tuesday, February 17th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, Lumentum has a consensus rating of “Moderate Buy” and a consensus target price of $575.06.
Lumentum Price Performance
Lumentum (NASDAQ:LITE – Get Free Report) last issued its quarterly earnings results on Tuesday, February 3rd. The technology company reported $1.67 earnings per share for the quarter, topping 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%. The firm’s quarterly revenue was up 65.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.42 EPS. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. Sell-side analysts forecast that Lumentum will post 0.03 EPS for the current fiscal year.
Insider Buying and Selling at Lumentum
In other news, CFO Wajid Ali sold 5,302 shares of the firm’s stock in a transaction 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 completion of the transaction, the chief financial officer owned 66,287 shares of the company’s stock, valued at approximately $45,812,934.31. This trade represents a 7.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Penny Herscher sold 4,000 shares of the company’s stock in a transaction dated Thursday, February 12th. The shares were sold at an average price of $597.29, for a total value of $2,389,160.00. Following the completion of the sale, the director owned 2,057 shares in the company, valued at $1,228,625.53. This trade represents a 66.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 65,775 shares of company stock valued at $38,851,343. 0.43% of the stock is owned by insiders.
Institutional Investors Weigh In On Lumentum
Several hedge funds and other institutional investors have recently made changes to their positions in LITE. EverSource Wealth Advisors LLC grew its holdings in Lumentum by 363.9% during the third quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company’s stock worth $27,000 after buying an additional 131 shares in the last quarter. V Square Quantitative Management LLC bought a new position in shares of Lumentum during the 4th quarter valued at approximately $28,000. Truvestments Capital LLC increased its position in Lumentum by 300.0% in the fourth quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock worth $28,000 after buying an additional 57 shares during the last quarter. Triumph Capital Management bought a new stake in Lumentum in the 4th quarter valued at about $30,000. Finally, Danske Bank A S bought a new stake in shares of Lumentum in the third quarter valued at approximately $33,000. 94.05% of the stock is owned by institutional investors.
Lumentum News Roundup
Here are the key news stories impacting Lumentum this week:
- Positive Sentiment: Stifel highlighted Lumentum’s disclosure at OFC that it sees a long-term quarterly revenue run rate of roughly $2 billion — a concrete signal of sustained demand for its optical components that supports higher revenue visibility. Lumentum leaps after revealing long-term quarterly revenue run rate of $2B at OFC: Stifel
- Positive Sentiment: Market focus on NVIDIA’s AI expansion is boosting Lumentum: coverage notes the company is a direct beneficiary of the AI optics supercycle (NVIDIA has a strategic supply relationship), which increases expected multi-year demand for high-speed lasers and transceivers. Lumentum Soars 12% — and NVIDIA’s AI Boom Is a Big Reason Why
- Positive Sentiment: Rosenblatt reiterated a “buy” and raised its price target to $900, signaling meaningful analyst upside and adding conviction for momentum traders and funds that track analyst sentiment. Benzinga
- Positive Sentiment: Product and demo announcements at OFC (VCSEL-based scale-up demo and broader scale-out/scale-up AI solutions) reinforce Lumentum’s technology leadership for rack- and pod-level AI networking — a commercial catalyst if demos translate into design wins. Lumentum Demonstrates Industry-Leading Technologies and Products for Scale-Out, Scale-Up and Scale-Across AI Infrastructure at OFC 2026 Lumentum Showcases Breakthrough Optical Scale-Up Demonstration at OFC 2026 Using VCSEL Technology
- Positive Sentiment: Partnership demos with Marvell (optical circuit switching) show ecosystem adoption and could accelerate integration into next-gen AI fabrics — another technical/commercial validation. Marvell and Lumentum to Demonstrate Optical Circuit Switching for Next-generation AI Scale-up Infrastructure
- Positive Sentiment: T. Rowe Price warns of multi-year shortages for optical suppliers as AI scale-out accelerates — a supply/demand imbalance that could support pricing and margins for suppliers like Lumentum. “Multi-Year Shortages” Coming for Optical Suppliers, Says T. Rowe Price. Here’s What That Means for LITE and CIEN
- Neutral Sentiment: Company-hosted presentations and transcripts from OFC/earnings (Seeking Alpha slides and transcript) provide detail for investors but are informational unless they reveal new bookings or formal customer commitments. Lumentum Holdings Inc. (LITE) Discusses Illuminating the Networks of Tomorrow and Industry Trends Transcript Slideshow
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.
Further Reading
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