Lumentum (NASDAQ:LITE) Stock Price Down 8.5% – Here’s Why

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price fell 8.5% on Friday . The stock traded as low as $755.03 and last traded at $762.99. Approximately 3,637,947 shares traded hands during mid-day trading, a decline of 37% from the average session volume of 5,766,834 shares. The stock had previously closed at $833.64.

Analysts Set New Price Targets

A number of research firms recently issued reports on LITE. TD Cowen dropped their price target on Lumentum from $995.00 to $800.00 and set a “hold” rating on the stock in a research note on Monday, July 13th. UBS Group boosted their price objective on Lumentum from $455.00 to $960.00 and gave the company a “neutral” rating in a research note on Wednesday, May 6th. Craig Hallum raised their target price on shares of Lumentum from $900.00 to $1,150.00 in a research report on Wednesday, May 6th. Citic Securities upped their price target on shares of Lumentum from $620.00 to $1,186.00 in a research report on Monday, May 11th. Finally, BNP Paribas Exane increased their price target on shares of Lumentum from $1,040.00 to $1,300.00 in a research note on Wednesday, May 6th. Fourteen equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $1,012.67.

Lumentum Stock Down 8.5%

The business has a 50-day simple moving average of $848.84 and a two-hundred day simple moving average of $725.62. The company has a market capitalization of $59.36 billion, a price-to-earnings ratio of 141.29 and a beta of 1.48. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14.

Lumentum (NASDAQ:LITE) last released its earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.27 by $0.10. The business had revenue of $808.40 million for the quarter, compared to analyst estimates of $810.21 million. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The company’s revenue for the quarter was up 90.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, equities analysts predict that Lumentum Holdings Inc. will post 6.42 EPS for the current year.

Insider Activity

In other Lumentum news, Director Brian Lillie sold 11,951 shares of Lumentum stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $981.64, for a total value of $11,731,579.64. Following the sale, the director owned 13,959 shares of the company’s stock, valued at approximately $13,702,712.76. The trade was a 46.13% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Vincent Retort sold 3,183 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $3,036,422.85. Following the transaction, the insider owned 89,563 shares in the company, valued at $85,438,623.85. The trade was a 3.43% decrease in their position. 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 a total of 41,260 shares of company stock valued at $38,859,220 over the last ninety days. 0.43% of the stock is currently owned by company insiders.

Institutional Trading of Lumentum

Institutional investors have recently modified their holdings of the business. Arrowstreet Capital Limited Partnership raised its position in Lumentum by 18.7% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company’s stock worth $683,661,000 after acquiring an additional 291,591 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of Lumentum by 9.6% during the 4th quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company’s stock worth $521,563,000 after purchasing an additional 123,265 shares during the period. Situational Awareness LP increased its holdings in shares of Lumentum by 210.9% in the 4th quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock valued at $478,577,000 after purchasing an additional 880,800 shares in the last quarter. Norges Bank purchased a new position in shares of Lumentum in the 4th quarter valued at about $474,495,000. Finally, Value Aligned Research Advisors LLC acquired a new stake in shares of Lumentum in the fourth quarter valued at about $432,062,000. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

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.