Lumentum (NASDAQ:LITE) Insider Vincent Retort Sells 3,183 Shares of Stock

Lumentum Holdings Inc. (NASDAQ:LITE) insider Vincent Retort sold 3,183 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $909.43, for a total transaction of $2,894,715.69. Following the completion of the transaction, the insider owned 114,495 shares in the company, valued at $104,125,187.85. This trade represents a 2.70% decrease in their position. The sale was disclosed in a document filed with the SEC, 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.

Lumentum Stock Down 9.9%

Lumentum stock traded down $95.59 during midday trading on Tuesday, reaching $873.31. The stock had a trading volume of 5,992,989 shares, compared to its average volume of 5,176,457. Lumentum Holdings Inc. has a 12 month low of $111.20 and a 12 month high of $1,085.68. The company has a fifty day moving average price of $811.58 and a two-hundred day moving average price of $783.10. The company has a current ratio of 1.68, a quick ratio of 1.40 and a debt-to-equity ratio of 0.01. The company has a market capitalization of $67.94 billion, a P/E ratio of -10.62 and a beta of 1.50.

Lumentum (NASDAQ:LITE) last posted its earnings results on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, topping the consensus estimate of $2.97 by $0.26. The company had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The firm’s revenue for the quarter was up 109.3% on a year-over-year basis. During the same period in the previous year, the firm posted $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, equities analysts expect that Lumentum Holdings Inc. will post 16.97 EPS for the current fiscal year.

Hedge Funds Weigh In On Lumentum

Large investors have recently modified their holdings of the company. Jupiter Topco LLC bought a new position in shares of Lumentum during the second quarter valued at about $1,621,396,000. Arrowstreet Capital Limited Partnership grew its position in Lumentum by 18.7% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company’s stock worth $683,661,000 after purchasing an additional 291,591 shares during the period. Geode Capital Management LLC lifted its holdings in Lumentum by 9.6% in 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 acquiring an additional 123,265 shares during the period. Situational Awareness LP boosted its position in Lumentum by 210.9% in the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock worth $478,577,000 after purchasing an additional 880,800 shares during the last quarter. Finally, Norges Bank bought a new stake in shares of Lumentum during the 4th quarter valued at about $474,495,000. 94.05% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. Citigroup reissued a “buy” rating on shares of Lumentum in a report on Wednesday, August 12th. Bank of America lowered their price target on shares of Lumentum from $1,100.00 to $1,000.00 and set a “neutral” rating on the stock in a report on Wednesday, August 12th. UBS Group set a $820.00 price objective on Lumentum in a report on Wednesday, August 12th. Loop Capital boosted their target price on Lumentum from $900.00 to $1,400.00 and gave the company a “buy” rating in a research note on Tuesday, May 5th. Finally, Morgan Stanley increased their price target on Lumentum from $900.00 to $1,000.00 and gave the stock an “equal weight” rating in a research note on Wednesday, August 12th. Thirteen analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, Lumentum presently has an average rating of “Moderate Buy” and an average target price of $1,044.67.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: AI-driven growth remains the bullish case. Lumentum’s exposure to optical components used in AI data-center networks, along with expectations for rising margins and stronger fiscal 2027 earnings, continues to support the long-term growth narrative. Lumentum Stock Is Overvalued at 11.4X P/S: Should You Still Buy It?
• Positive Sentiment: Broker sentiment remains constructive. Analysts collectively assign Lumentum an average “Moderate Buy” rating, providing ongoing support despite the recent volatility. Lumentum Receives Average Rating of Moderate Buy
• Neutral Sentiment: Valuation is a central debate. At approximately 11.4 times sales, Lumentum trades at a demanding multiple after substantial multi-year gains. While a discounted-cash-flow analysis indicates potential upside, market-based valuation measures suggest the stock may already reflect considerable optimism. Lumentum Stock Looks Fully Priced Despite Cash Flow Upside
• Negative Sentiment: Risk aversion is weighing on optics stocks. Reports concerning Anthropic and a Wall Street Journal article have triggered a selloff across AI hardware names, with Lumentum among the affected optics companies. The move indicates investors are taking profits and questioning near-term AI spending or demand expectations. Optics Stocks Drop on Anthropic News
• Negative Sentiment: The recent rally has increased downside sensitivity. Lumentum had rallied alongside Coherent and AXT after indium phosphide price hikes, but the reversal shows how quickly sentiment can change when sector-wide AI concerns emerge. Optics Stocks Rally on Indium Phosphide Price Hikes

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.