Lumentum (NASDAQ:LITE) SVP Jae Kim Sells 1,366 Shares of Stock

Lumentum Holdings Inc. (NASDAQ:LITE) SVP Jae Kim sold 1,366 shares of Lumentum stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $909.43, for a total transaction of $1,242,281.38. Following the completion of the transaction, the senior vice president directly owned 45,973 shares in the company, valued at $41,809,225.39. The trade was a 2.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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%

Shares of NASDAQ:LITE opened at $873.31 on Wednesday. The stock has a market cap of $67.94 billion, a P/E ratio of -10.62 and a beta of 1.50. The firm has a fifty day moving average price of $811.58 and a 200 day moving average price of $783.10. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.68 and a quick ratio of 1.40. Lumentum Holdings Inc. has a 1-year low of $111.20 and a 1-year high of $1,085.68.

Lumentum (NASDAQ:LITE) last issued its quarterly earnings data on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.97 by $0.26. The company had revenue of $1.01 billion for 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%. Lumentum’s revenue for the quarter was up 109.3% on a year-over-year basis. During the same period last year, the firm posted $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Sell-side analysts predict that Lumentum Holdings Inc. will post 16.97 EPS for the current year.

Key Lumentum News

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

Analyst Ratings Changes

Several equities analysts recently issued reports on the company. Craig Hallum boosted their price target on Lumentum from $900.00 to $1,150.00 in a research report on Wednesday, May 6th. Jefferies Financial Group reaffirmed a “buy” rating and set a $1,200.00 price objective on shares of Lumentum in a research report on Wednesday, May 6th. Northland Securities lifted their target price on Lumentum from $1,000.00 to $1,200.00 and gave the company an “outperform” rating in a research note on Wednesday, June 3rd. B. Riley Financial reissued a “buy” rating on shares of Lumentum in a report on Friday, May 1st. Finally, Bank of America cut their price target on Lumentum from $1,100.00 to $1,000.00 and set a “neutral” rating for the company in a research note on Wednesday, August 12th. Thirteen investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $1,044.67.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Jupiter Topco LLC acquired a new stake in Lumentum in the second quarter valued at about $1,621,396,000. Arrowstreet Capital Limited Partnership increased its position in Lumentum by 18.7% during 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 raised 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 buying an additional 123,265 shares in the last quarter. Situational Awareness LP raised its stake in shares of Lumentum by 210.9% during the 4th quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock worth $478,577,000 after buying an additional 880,800 shares in the last quarter. Finally, Norges Bank acquired a new stake in shares of Lumentum in the 4th quarter valued at approximately $474,495,000. 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.