Lumentum (NASDAQ:LITE) Stock Price Down 7.7% – What’s Next?

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price dropped 7.7% on Wednesday . The stock traded as low as $716.40 and last traded at $752.00. 4,190,253 shares changed hands during mid-day trading, a decline of 28% from the average daily volume of 5,851,615 shares. The stock had previously closed at $814.80.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on LITE. Barclays upped their target price on Lumentum from $750.00 to $1,000.00 and gave the company an “equal weight” rating in a report on Wednesday, May 6th. JPMorgan Chase & Co. lifted their target price on Lumentum from $950.00 to $1,130.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. Weiss Ratings reiterated a “hold (c)” rating on shares of Lumentum in a report on Tuesday, April 21st. Jefferies Financial Group reaffirmed a “buy” rating and issued a $1,200.00 target price on shares of Lumentum in a research report on Wednesday, May 6th. Finally, Stifel Nicolaus upped their price objective on shares of Lumentum from $800.00 to $1,100.00 and gave the stock a “buy” rating in a report on Tuesday, May 5th. Fourteen research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $1,012.67.

Lumentum Stock Down 7.7%

The stock has a market cap of $58.51 billion, a PE ratio of 139.26 and a beta of 1.48. The firm has a fifty day moving average of $876.03 and a 200 day moving average of $705.88. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE) last released its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.27 by $0.10. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The business had revenue of $808.40 million during the quarter, compared to analysts’ expectations of $810.21 million. During the same period in the prior year, the firm posted $0.57 EPS. The business’s quarterly 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, equities research analysts anticipate that Lumentum Holdings Inc. will post 6.4 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Brian Lillie sold 11,951 shares of the company’s stock in a transaction on Monday, May 11th. The shares were sold at an average price of $981.64, for a total value of $11,731,579.64. Following the completion of the transaction, the director owned 13,959 shares in the company, valued at approximately $13,702,712.76. This represents a 46.13% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 3,210 shares of the stock in a transaction on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $3,062,179.50. Following the completion of the transaction, the insider directly owned 81,488 shares in the company, valued at $77,735,477.60. This trade represents a 3.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 a total of 41,260 shares of company stock valued at $38,859,220 over the last three months. 0.43% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Lumentum

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Hilltop National Bank grew its position in Lumentum by 26.8% in the second quarter. Hilltop National Bank now owns 71 shares of the technology company’s stock valued at $61,000 after acquiring an additional 15 shares in the last quarter. Sachetta LLC lifted its position in shares of Lumentum by 118.8% during the first quarter. Sachetta LLC now owns 35 shares of the technology company’s stock worth $25,000 after purchasing an additional 19 shares in the last quarter. Versant Capital Management Inc boosted its stake in shares of Lumentum by 39.5% in the second quarter. Versant Capital Management Inc now owns 106 shares of the technology company’s stock valued at $91,000 after purchasing an additional 30 shares during the period. Hilton Head Capital Partners LLC purchased a new position in shares of Lumentum in the first quarter valued at $25,000. Finally, Abel Hall LLC grew its holdings in Lumentum by 5.5% during the 1st quarter. Abel Hall LLC now owns 693 shares of the technology company’s stock valued at $487,000 after purchasing an additional 36 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.