Lumentum (NASDAQ:LITE) Stock Price Up 10.7% – Here’s Why

Lumentum Holdings Inc. (NASDAQ:LITE) rose 10.7% on Monday. The stock traded as high as $616.66 and last traded at $596.16. Approximately 5,921,845 shares were traded during trading, an increase of 6% from the average daily volume of 5,592,743 shares. The stock had previously closed at $538.59.

Trending Headlines about Lumentum

Here are a few of the latest headlines about LITE:

• Positive Sentiment: Sanford C. Bernstein raised its price target to $700 from $635 and maintained an “outperform” rating, signaling potential upside in the analyst’s view. Lumentum price-target coverage
• Neutral Sentiment: A report said Lumentum slipped before the market opened as investors and deal experts gave a lukewarm early response to Marvell’s reported $115 billion acquisition plan. That initial reaction contrasts with the later lift from the broad market rally. Lumentum slips on deal reaction
• Negative Sentiment: A law firm announced an investigation involving Lumentum, which could be a source of uncertainty, though the notice provided no details about the matter. Shareholder investigation notice

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on LITE shares. Needham & Company LLC reduced their target price on Lumentum from $1,040.00 to $800.00 and set a “buy” rating for the company in a report on Tuesday, November 3rd. B. Riley Financial lowered Lumentum from a “buy” rating to a “neutral” rating and dropped their price target for the company from $1,142.00 to $770.00 in a research report on Tuesday, November 3rd. Jefferies Financial Group increased their price objective on Lumentum from $1,200.00 to $1,250.00 and gave the stock a “buy” rating in a research note on Tuesday, October 20th. Weiss Ratings downgraded Lumentum from a “hold (c-)” rating to a “sell (d-)” rating in a research note on Wednesday, August 19th. Finally, Wolfe Research restated an “outperform” rating on shares of Lumentum in a research report on Friday, August 21st. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $1,053.17.

Lumentum Price Performance

The company has a debt-to-equity ratio of 0.01, a current ratio of 1.61 and a quick ratio of 1.27. The stock has a market capitalization of $58.78 billion, a price-to-earnings ratio of -8.23 and a beta of 1.64. The stock’s 50 day simple moving average is $881.57 and its 200-day simple moving average is $803.93.

Lumentum (NASDAQ:LITE) last announced its earnings results on Monday, November 2nd. The technology company reported $4.57 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.22 by $0.35. Lumentum had a negative net margin of 175.82% and a positive return on equity of 28.85%. The business had revenue of $1.26 billion during the quarter, compared to analysts’ expectations of $1.26 billion. During the same quarter last year, the company posted $1.10 EPS. The firm’s revenue for the quarter was up 136.5% on a year-over-year basis. On average, analysts expect that Lumentum Holdings Inc. will post 19.93 EPS for the current fiscal year.

Insider Transactions at Lumentum

In other Lumentum news, insider Vincent Retort sold 38,663 shares of Lumentum stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $852.59, for a total transaction of $32,963,687.17. Following the completion of the transaction, the insider directly owned 78,440 shares of the company’s stock, valued at $66,877,159.60. The trade was a 33.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 1,500 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 transaction of $1,241,730.00. Following the transaction, the insider owned 100,434 shares in the company, valued at $83,141,273.88. This trade represents a 1.47% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 the last three months, insiders have sold 94,496 shares of company stock worth $85,978,498. 0.28% of the stock is owned by insiders.

Hedge Funds Weigh In On Lumentum

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

Lumentum Company Profile

Lumentum Holdings Inc. develops and manufactures optical and photonic products used in communications networks and industrial applications. Its offerings include optical components, modules and lasers that help transmit and process data across telecommunications and data center networks. The company also supplies lasers and related technologies for industrial uses, including precision manufacturing and semiconductor production. Its products serve customers in markets around the world. Lumentum became an independent public company in 2015 through a spin-off from JDSU, now Viavi Solutions.