Lumentum’s (LITE) Buy Rating Reiterated at Rosenblatt Securities

Lumentum (NASDAQ:LITE)‘s stock had its “buy” rating reissued by stock analysts at Rosenblatt Securities in a research report issued on Wednesday,Benzinga reports. They currently have a $1,300.00 target price on the technology company’s stock. Rosenblatt Securities’ price objective indicates a potential upside of 58.42% from the company’s current price.

Several other equities research analysts have also commented on the stock. Jefferies Financial Group reiterated a “buy” rating and issued a $1,200.00 price objective on shares of Lumentum in a research note on Wednesday, May 6th. Morgan Stanley reaffirmed an “outperform” rating on shares of Lumentum in a report on Wednesday. Susquehanna increased their price target on Lumentum from $550.00 to $1,100.00 and gave the company a “positive” rating in a research report on Monday, April 20th. Citic Securities lifted their price target on Lumentum from $620.00 to $1,186.00 in a report on Monday, May 11th. Finally, BNP Paribas Exane upped their price objective on Lumentum from $1,040.00 to $1,300.00 in a research note on Wednesday, May 6th. Fifteen equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $1,035.52.

Lumentum Stock Performance

NASDAQ LITE opened at $820.59 on Wednesday. Lumentum has a 1 year low of $111.20 and a 1 year high of $1,085.68. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97. The firm has a market cap of $63.84 billion, a price-to-earnings ratio of 151.96 and a beta of 1.50. The company has a fifty day moving average price of $809.23 and a 200-day moving average price of $763.39.

Lumentum (NASDAQ:LITE) last released its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, beating analysts’ consensus estimates of $2.97 by $0.26. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The company had revenue of $1.01 billion for the quarter, compared to analyst estimates of $987.70 million. During the same period last year, the firm earned $0.88 earnings per share. The firm’s revenue was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, equities research analysts predict that Lumentum will post 6.42 EPS for the current fiscal year.

Insider Activity at Lumentum

In related news, insider Vincent Retort sold 3,183 shares of Lumentum 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 $3,036,422.85. Following 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 position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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, CFO Wajid Ali sold 2,487 shares of the firm’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $2,372,473.65. Following the completion of the sale, the chief financial officer directly owned 60,951 shares of the company’s stock, valued at $58,144,206.45. This represents a 3.92% 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 have sold a total of 23,827 shares of company stock worth $22,051,069 over the last 90 days. Corporate insiders own 0.43% of the company’s stock.

Hedge Funds Weigh In On Lumentum

Several hedge funds have recently bought and sold shares of LITE. Arrowstreet Capital Limited Partnership raised its position in Lumentum by 18.7% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company’s stock valued at $683,661,000 after purchasing an additional 291,591 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Lumentum by 9.6% during the fourth quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company’s stock valued at $521,563,000 after buying an additional 123,265 shares during the period. Situational Awareness LP raised its position 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 worth $478,577,000 after acquiring 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 approximately $474,495,000. Finally, Value Aligned Research Advisors LLC purchased a new stake in Lumentum in the fourth quarter worth $432,062,000. Hedge funds and other institutional investors own 94.05% of the company’s stock.

Key Stories Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Earnings and revenue beat estimates: Fiscal Q4 revenue rose 109% year over year to approximately $1.01 billion, exceeding consensus near $988 million. Adjusted EPS reached $3.23 versus estimates of about $2.97–$2.99, representing a substantial increase from $0.88 a year earlier. Lumentum stock surges 8% after earnings as Nvidia bet starts paying off
• Positive Sentiment: Exceptional forward guidance: Lumentum forecast fiscal Q1 2027 adjusted EPS of $4.05–$4.35, well above the roughly $3.55 analyst consensus, with revenue projected at approximately $1.23–$1.27 billion. The outlook suggests that accelerating demand is continuing into the new fiscal year. Lumentum: Strike While The Iron Is Hot
• Positive Sentiment: AI infrastructure remains a key growth driver: Management and analysts highlighted increasing data-center adoption of optical links as AI networks expand and connectivity shifts from copper to optical technology. Non-GAAP gross margin also surpassed 50% ahead of schedule, supporting profit growth. Lumentum Beats Q4 Estimates: CEO Says Data Centers Turn Increasingly to Optical Links
• Neutral Sentiment: Valuation remains a risk: After a substantial longer-term rally, LITE trades at an elevated earnings multiple, leaving the stock vulnerable to profit-taking or disappointment if AI-related growth slows. Investors had already pressured AI-optics shares ahead of the report. Lumentum stock: Is the valuation too rich heading into Q4 results?

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.