Lumentum (NASDAQ:LITE) Raised to “Strong-Buy” at Zacks Research

Lumentum (NASDAQ:LITE) was upgraded by Zacks Research from a “hold” rating to a “strong-buy” rating in a report issued on Wednesday,Zacks.com reports.

A number of other equities research analysts have also recently commented on the stock. Stifel Nicolaus increased their price objective on shares of Lumentum from $800.00 to $1,100.00 and gave the company a “buy” rating in a research note on Tuesday, May 5th. Jefferies Financial Group reaffirmed a “buy” rating and set a $1,200.00 price target on shares of Lumentum in a research note on Wednesday, May 6th. Needham & Company LLC raised their price target on shares of Lumentum from $880.00 to $1,040.00 and gave the stock a “buy” rating in a research note on Tuesday, April 21st. B. Riley Financial reaffirmed a “buy” rating on shares of Lumentum in a research note on Friday, May 1st. Finally, 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. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, Lumentum has an average rating of “Moderate Buy” and a consensus price target of $1,012.43.

Lumentum Price Performance

Shares of NASDAQ LITE opened at $1,001.81 on Wednesday. The stock has a market cap of $77.94 billion, a price-to-earnings ratio of 185.52 and a beta of 1.53. Lumentum has a 52 week low of $71.04 and a 52 week high of $1,085.68. The company’s 50-day moving average price is $804.16 and its 200 day moving average price is $532.16. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01.

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

Insiders Place Their Bets

In related news, Director Ian Small sold 3,500 shares of the firm’s stock in a transaction that occurred on 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 transaction, the director owned 25,962 shares in the company, valued at approximately $23,655,795.54. This trade represents a 11.88% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Wajid Ali sold 5,302 shares of the firm’s stock in a transaction that occurred on Friday, February 27th. The shares were sold at an average price of $691.13, for a total transaction of $3,664,371.26. Following the completion of the transaction, the chief financial officer owned 66,287 shares in the company, valued at $45,812,934.31. The trade was a 7.41% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 29,333 shares of company stock valued at $24,049,017. 0.43% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of LITE. Advisors Asset Management Inc. raised its holdings in Lumentum by 36.8% in the first quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company’s stock valued at $59,000 after buying an additional 254 shares during the period. NewEdge Advisors LLC raised its holdings in Lumentum by 109.9% in the first quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company’s stock valued at $747,000 after buying an additional 6,275 shares during the period. Empowered Funds LLC raised its holdings in Lumentum by 9.1% in the first quarter. Empowered Funds LLC now owns 8,139 shares of the technology company’s stock valued at $507,000 after buying an additional 680 shares during the period. Hsbc Holdings PLC purchased a new position in Lumentum in the second quarter valued at approximately $298,000. Finally, Arrowstreet Capital Limited Partnership purchased a new position in Lumentum in the second quarter valued at approximately $1,712,000. Hedge funds and other institutional investors own 94.05% of the company’s stock.

Trending Headlines about 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.

Lumentum Company Profile

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.