Lumentum (NASDAQ:LITE) Trading Down 4.2% on Insider Selling

Lumentum Holdings Inc. (NASDAQ:LITE) was down 4.2% during trading on Monday after an insider sold shares in the company. The company traded as low as $784.47 and last traded at $830.17. Approximately 3,709,393 shares traded hands during trading, a decline of 35% from the average session volume of 5,703,229 shares. The stock had previously closed at $866.71.

Specifically, SVP Jae Kim sold 1,904 shares of the stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $827.82, for a total value of $1,576,169.28. Following the sale, the senior vice president directly owned 42,096 shares in the company, valued at approximately $34,847,910.72. This represents a 4.33% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through 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. Also, insider Vincent Retort sold 2,483 shares of the business’s stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $827.82, for a total value of $2,055,477.06. Following the transaction, the insider owned 109,438 shares of the company’s stock, valued at approximately $90,594,965.16. The trade was a 2.22% decrease in their position. 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. In other Lumentum news, insider Yuen Wupen sold 500 shares of the company’s stock in a transaction on Friday, August 21st. The stock was sold at an average price of $898.15, for a total value of $449,075.00. Following the transaction, the insider owned 93,229 shares of the company’s stock, valued at $83,733,626.35. This represents a 0.53% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available 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.

Analysts Set New Price Targets

Several analysts have recently weighed in on LITE shares. Bank of America decreased their target price on Lumentum from $1,100.00 to $1,000.00 and set a “neutral” rating for the company in a research report on Wednesday, August 12th. Needham & Company LLC reaffirmed a “buy” rating and issued a $1,040.00 price target on shares of Lumentum in a research note on Wednesday, August 12th. Craig Hallum raised their price target on shares of Lumentum from $900.00 to $1,150.00 in a research note on Wednesday, May 6th. Northland Securities boosted their price objective on shares of Lumentum from $1,000.00 to $1,200.00 and gave the company an “outperform” rating in a research report on Wednesday, June 3rd. Finally, Wolfe Research restated an “outperform” rating on shares of Lumentum in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $1,044.67.

Lumentum Trading Down 4.2%

The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01. The stock’s 50 day moving average is $809.76 and its two-hundred day moving average is $792.80. The company has a market capitalization of $74.47 billion, a PE ratio of -10.10 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, beating analysts’ consensus estimates of $2.97 by $0.26. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The business had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $987.70 million. During the same quarter last year, the firm posted $0.88 EPS. The company’s revenue for the quarter 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, sell-side analysts predict that Lumentum Holdings Inc. will post 19.76 EPS for the current fiscal year.

Hedge Funds Weigh In On Lumentum

Several institutional investors have recently bought and sold shares of LITE. California State Teachers Retirement System raised its stake in Lumentum by 112,343.2% in the second quarter. California State Teachers Retirement System now owns 92,237,160 shares of the technology company’s stock worth $79,145,018,000 after buying an additional 92,155,130 shares in the last quarter. Jupiter Topco LLC bought a new stake in Lumentum during the 2nd quarter valued at $1,621,396,000. Arrowstreet Capital Limited Partnership boosted 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 valued at $683,661,000 after acquiring an additional 291,591 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of Lumentum by 9.6% in the 4th 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. Finally, 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 acquiring an additional 880,800 shares during the period. 94.05% of the stock is 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.