Brokerages Set Lumentum Holdings Inc. (NASDAQ:LITE) PT at $1,003.75

Lumentum Holdings Inc. (NASDAQ:LITE) has been given an average recommendation of “Moderate Buy” by the twenty research firms that are presently covering the company, Marketbeat Ratings reports. Seven investment analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company. The average 1 year target price among brokerages that have updated their coverage on the stock in the last year is $1,012.4286.

Several brokerages recently weighed in on LITE. JPMorgan Chase & Co. increased their target price on Lumentum from $950.00 to $1,130.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $1,200.00 target price on shares of Lumentum in a research report on Wednesday, May 6th. Raymond James Financial reaffirmed an “outperform” rating and issued a $1,014.00 target price on shares of Lumentum in a research report on Wednesday, May 6th. UBS Group increased their target price on Lumentum from $455.00 to $960.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 6th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Lumentum in a research report on Tuesday, April 21st.

Insider Buying and Selling

In other Lumentum news, CFO Wajid Ali sold 5,302 shares of the firm’s stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $691.13, for a total value of $3,664,371.26. Following the transaction, the chief financial officer directly owned 66,287 shares of the company’s stock, valued at $45,812,934.31. This trade represents a 7.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Ian Small sold 3,500 shares of the firm’s stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $911.17, for a total value of $3,189,095.00. Following the completion of the transaction, the director directly owned 25,962 shares in the company, valued at $23,655,795.54. This trade represents a 11.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 29,333 shares of company stock valued at $24,049,017 over the last ninety days. Insiders own 0.43% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in LITE. Arrowstreet Capital Limited Partnership raised its position in Lumentum by 8,579.2% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company’s stock valued at $254,350,000 after purchasing an additional 1,545,199 shares during the period. Norges Bank purchased a new position in Lumentum in the fourth quarter valued at about $474,495,000. Value Aligned Research Advisors LLC purchased a new position in Lumentum in the fourth quarter valued at about $432,062,000. Situational Awareness LP raised its position in Lumentum by 210.9% in the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock valued at $478,577,000 after purchasing an additional 880,800 shares during the period. Finally, Assenagon Asset Management S.A. raised its position in Lumentum by 707.0% in the fourth quarter. Assenagon Asset Management S.A. now owns 994,478 shares of the technology company’s stock valued at $366,555,000 after purchasing an additional 871,249 shares during the period. 94.05% of the stock is owned by hedge funds and other institutional investors.

Lumentum Price Performance

LITE stock opened at $1,001.81 on Friday. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01. The stock has a market capitalization of $77.94 billion, a price-to-earnings ratio of 185.52 and a beta of 1.53. The stock’s fifty day simple moving average is $804.16 and its 200-day simple moving average is $532.16. Lumentum has a 52-week low of $71.04 and a 52-week high of $1,085.68.

Lumentum (NASDAQ:LITE) last issued its earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, topping the consensus estimate of $2.27 by $0.10. The business had revenue of $808.40 million for the quarter, compared to analyst estimates of $810.21 million. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The business’s quarterly revenue was up 90.1% on a year-over-year basis. During the same period last year, the company posted $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. Equities research analysts expect that Lumentum will post 6.49 EPS for the current year.

Key Stories Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum was added to the Nasdaq-100, which can trigger buying from index funds and boost visibility with large institutional investors. Lumentum Joins the Nasdaq-100 Index®, Achieving New Milestone in Global Growth
• Positive Sentiment: Lumentum was upgraded to Zacks Rank #1 (Strong Buy), reflecting improving earnings expectations and reinforcing momentum-buying interest. What Makes Lumentum (LITE) a New Strong Buy Stock
• Positive Sentiment: Commentary highlighted that Lumentum’s Components business is accelerating, with AI optics demand surging and key products sold out, suggesting stronger revenue potential ahead. Lumentum’s Components Business Accelerates: More Upside Ahead?
• Positive Sentiment: Northland Securities raised earnings estimates for Lumentum, adding to the view that the company’s profit outlook is improving. Lumentum stock report
• Neutral Sentiment: Recent coverage also notes that Lumentum’s strong rally has pushed the stock to fresh highs, which can attract momentum buyers but also raise valuation questions.
• Neutral Sentiment: Insider selling was reported this week, but the transactions were made under pre-arranged trading plans, so they appear less likely to signal a major change in fundamentals.

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.