Lumentum (NASDAQ:LITE) Sets New 52-Week High – Still a Buy?

Lumentum Holdings Inc. (NASDAQ:LITE) shares hit a new 52-week high on Friday. The stock traded as high as $1,091.61 and last traded at $1,085.2910, with a volume of 2971179 shares changing hands. The stock had previously closed at $1,045.78.

Wall Street Analyst Weigh In

A number of research firms have issued reports on LITE. Rosenblatt Securities restated a “buy” rating and issued a $1,300.00 price objective on shares of Lumentum in a research report on Wednesday, September 23rd. Bank of America cut their target price on Lumentum from $1,100.00 to $1,000.00 and set a “neutral” rating on the stock in a research note on Wednesday, August 12th. Morgan Stanley upped their price target on Lumentum from $900.00 to $1,000.00 and gave the company an “equal weight” rating in a research report on Wednesday, August 12th. Raymond James Financial reiterated an “outperform” rating and issued a $1,036.00 price objective on shares of Lumentum in a report on Wednesday, August 12th. Finally, UBS Group set a $820.00 target price on Lumentum in a research note on Wednesday, August 12th. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $1,073.25.

Lumentum Price Performance

The firm has a 50-day simple moving average of $874.94 and a 200 day simple moving average of $854.11. The firm has a market cap of $97.27 billion, a PE ratio of -13.18 and a beta of 1.53. 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 (NASDAQ:LITE) last issued its quarterly earnings results 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. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The company had revenue of $1.01 billion during the quarter, compared to analyst estimates of $987.70 million. During the same period last year, the business earned $0.88 EPS. Lumentum’s quarterly revenue was up 109.3% compared to the same quarter last year. 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 19.78 EPS for the current year.

Insider Buying and Selling at Lumentum

In other news, insider Yuen Wupen sold 1,500 shares of the business’s 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 $1,241,730.00. Following the sale, the insider directly owned 100,434 shares of the company’s stock, valued at $83,141,273.88. The trade was a 1.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available 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, CEO Michael Hurlston sold 548 shares of the firm’s stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $958.66, for a total value of $525,345.68. Following the transaction, the chief executive officer directly owned 186,951 shares of the company’s stock, valued at approximately $179,222,445.66. This trade represents a 0.29% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 69,954 shares of company stock valued at $60,246,211 over the last ninety days. Company insiders own 0.43% of the company’s stock.

Hedge Funds Weigh In On Lumentum

Several large investors have recently modified their holdings of the stock. Hilton Head Capital Partners LLC purchased a new stake in Lumentum during the 1st quarter valued at about $25,000. Sachetta LLC increased its stake in Lumentum by 118.8% during the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock valued at $25,000 after purchasing an additional 19 shares in the last quarter. Burkett Financial Services LLC purchased a new position in Lumentum in the third quarter worth about $28,000. Harbour Investments Inc. lifted its stake in shares of Lumentum by 675.0% in the fourth quarter. Harbour Investments Inc. now owns 93 shares of the technology company’s stock worth $34,000 after buying an additional 81 shares in the last quarter. Finally, Meeder Asset Management Inc. purchased a new stake in shares of Lumentum during the second quarter valued at approximately $40,000. Hedge funds and other institutional investors own 94.05% of the company’s stock.

Lumentum Company Profile

Lumentum Holdings Inc is a photonics and optical technology company that develops and manufactures products used to transmit, process and manage light. Its solutions support communications networks, data centers, cloud computing infrastructure, industrial applications, and other technology markets that rely on high-speed optical connectivity and precision lasers.

The company’s product portfolio includes optical components and modules for telecommunications and networking, lasers and laser systems, optical amplifiers, wavelength-management products, and photonic subsystems.