Lumentum (NASDAQ:LITE) Trading Down 4.4% on Analyst Downgrade

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price was down 4.4% during mid-day trading on Tuesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $680.43 and last traded at $698.91. Approximately 3,655,151 shares were traded during trading, a decline of 38% from the average session volume of 5,939,536 shares. The stock had previously closed at $731.25.

A number of other equities analysts have also recently weighed in on the company. BNP Paribas Exane boosted their price target on Lumentum from $1,040.00 to $1,300.00 in a report on Wednesday, May 6th. B. Riley Financial reaffirmed a “buy” rating on shares of Lumentum in a research note on Friday, May 1st. Citic Securities lifted their price objective on Lumentum from $620.00 to $1,186.00 in a research report on Monday, May 11th. TD Cowen upped their target price on shares of Lumentum from $875.00 to $995.00 and gave the company a “hold” rating in a report on Wednesday, May 6th. Finally, Citigroup raised their price target on shares of Lumentum from $800.00 to $1,100.00 and gave the stock a “buy” rating in a research note on Tuesday, April 21st. Fourteen equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $1,021.95.

Insider Transactions at Lumentum

In related news, SVP Jae Kim sold 1,422 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $953.95, for a total value of $1,356,516.90. Following the sale, the senior vice president directly owned 32,333 shares of the company’s stock, valued at approximately $30,844,065.35. This trade represents a 4.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at 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, insider Vincent Retort sold 3,183 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $3,036,422.85. Following the completion of the sale, the insider owned 89,563 shares of the company’s stock, valued at approximately $85,438,623.85. The trade was a 3.43% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders sold 41,260 shares of company stock worth $38,859,220 in the last quarter. 0.43% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in LITE. Hilton Head Capital Partners LLC purchased a new stake in Lumentum during the first quarter valued at about $25,000. Sachetta LLC raised its holdings in shares of Lumentum by 118.8% in the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock worth $25,000 after purchasing an additional 19 shares during the period. V Square Quantitative Management LLC acquired a new position in shares of Lumentum in the 4th quarter valued at about $28,000. Truvestments Capital LLC grew its holdings in shares of Lumentum by 300.0% during the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock worth $28,000 after purchasing an additional 57 shares during the period. Finally, Triumph Capital Management purchased a new stake in shares of Lumentum during the 4th quarter worth about $30,000. 94.05% of the stock is owned by hedge funds and other institutional investors.

Lumentum Stock Performance

The stock’s 50-day moving average is $883.55 and its 200-day moving average is $694.44. The stock has a market cap of $61.13 billion, a price-to-earnings ratio of 145.51 and a beta of 1.48. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE) last announced its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, beating analysts’ consensus estimates of $2.27 by $0.10. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The firm had revenue of $808.40 million for the quarter, compared to analysts’ expectations of $810.21 million. During the same period in the previous year, the company posted $0.57 earnings per share. Lumentum’s 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. On average, analysts expect that Lumentum Holdings Inc. will post 6.4 EPS for the current year.

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.