Lumentum (NASDAQ:LITE) Rating Lowered to Hold at Zacks Research

Lumentum (NASDAQ:LITE) was downgraded by investment analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a report issued on Monday, Zacks reports.

A number of other brokerages also recently commented on LITE. Citigroup boosted their price objective on shares of Lumentum from $1,200.00 to $1,400.00 and gave the company a “buy” rating in a research report on Monday, September 28th. Needham & Company LLC reiterated a “buy” rating and issued a $1,040.00 target price on shares of Lumentum in a research report on Wednesday, August 12th. Sanford C. Bernstein initiated coverage on shares of Lumentum in a research note on Wednesday, September 30th. They set an “outperform” rating and a $1,220.00 target price for the company. Evercore began coverage on shares of Lumentum in a research note on Monday, August 31st. They set an “outperform” rating and a $1,100.00 target price for the company. Finally, Mizuho boosted their price target on shares of Lumentum from $1,100.00 to $1,140.00 and gave the company an “outperform” rating in a report on Wednesday, August 12th. Sixteen research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Lumentum presently has a consensus rating of “Moderate Buy” and an average target price of $1,078.75.

Lumentum Stock Down 0.7%

Shares of Lumentum stock opened at $987.99 on Monday. Lumentum has a 1 year low of $152.54 and a 1 year high of $1,143.00. The company has a market cap of $89.49 billion, a P/E ratio of -12.02 and a beta of 1.53. 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 stock has a 50-day moving average price of $930.77 and a 200 day moving average price of $873.79.

Lumentum (NASDAQ:LITE) last released its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, beating the consensus estimate of $2.97 by $0.26. The company had revenue of $1.01 billion for the quarter, compared to analysts’ expectations of $987.70 million. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%. The business’s revenue for the quarter was up 109.3% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, analysts expect that Lumentum will post 19.79 EPS for the current fiscal year.

Insider Activity at Lumentum

In other news, insider Yuen Wupen sold 307 shares of the stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $945.00, for a total transaction of $290,115.00. Following the transaction, the insider owned 108,320 shares in the company, valued at $102,362,400. This represents a 0.28% decrease in their position. The sale 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. Also, CFO Wajid Ali sold 24,542 shares of the firm’s stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $1,048.50, for a total transaction of $25,732,287.00. Following the transaction, the chief financial officer owned 75,074 shares in the company, valued at $78,715,089. This represents a 24.64% 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. Insiders sold 94,496 shares of company stock valued at $85,978,498 over the last three months. Insiders own 0.28% of the company’s stock.

Hedge Funds Weigh In On Lumentum

Several institutional investors have recently bought and sold shares of the stock. Jupiter Topco LLC bought a new position in shares of Lumentum during the 2nd quarter worth about $1,621,396,000. Amundi increased its stake in Lumentum by 188.7% in the second quarter. Amundi now owns 658,427 shares of the technology company’s stock valued at $564,970,000 after acquiring an additional 430,355 shares during the period. WT Asset Management Ltd acquired a new position in Lumentum in the second quarter worth about $494,688,000. Janus Henderson Group PLC raised its position in Lumentum by 163.2% in the first quarter. Janus Henderson Group PLC now owns 567,182 shares of the technology company’s stock worth $398,590,000 after purchasing an additional 351,676 shares in the last quarter. Finally, Legal & General Group Plc acquired a new position in Lumentum in the second quarter worth about $376,539,000. 94.05% of the stock is currently owned by institutional investors.

Key Headlines Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum’s backlog has crossed a significant threshold, with demand reportedly exceeding supply and orders booked well into 2029. Supporters argue that this visibility strengthens the company’s outlook and may justify buying the recent pullback. Lumentum’s Massive Backlog and Demand Justify Buying at Today’s Price
• Positive Sentiment: Lumentum, Astera Labs, and Corning demonstrated a PCIe-over-optics platform for AI rack-scale systems at the OCP Global Summit. The technology highlights Lumentum’s role in next-generation data-center connectivity, while management said optical-component demand is largely committed through 2029. Lumentum, Astera Labs, and Corning Demonstrate PCIe over Optics
• Positive Sentiment: Several analysts and commentators remain bullish, citing potential free-cash-flow expansion, approximately $1.1 billion in net cash, strong AI exposure, and the possibility of substantial fiscal 2027 revenue growth. Lumentum has also been identified as a potential buy-on-the-dip AI stock. Lumentum: The Free Cash Flow Inflection I’m Betting On
• Neutral Sentiment: Analyst opinions are mixed. While some see significant long-term upside from AI connectivity, others are more cautious following Lumentum’s sharp rally and the stock’s demanding valuation. Analysts’ Opinions Are Mixed
• Negative Sentiment: The immediate catalyst is sector-wide selling in optical stocks. After gaining roughly 164% in 2026, Lumentum has experienced a recent pullback as investors take profits and question whether AI infrastructure spending can remain at current levels. Optical Networking Selloff and AI Funding Fears
• Negative Sentiment: The selloff has been especially pronounced even though Lumentum’s capacity is reportedly sold out, suggesting that valuation and concerns about future demand—not current order visibility—are driving the stock lower. Lumentum Falls as Optics Selloff Hits Hardest

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.