Lumentum (NASDAQ:LITE) Sets New 12-Month High – Should You Buy?

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price reached a new 52-week high on Tuesday . The company traded as high as $688.07 and last traded at $674.73, with a volume of 4487360 shares trading hands. The stock had previously closed at $667.77.

Key Stories Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Analysts say a 1.6T optics ramp is arriving ahead of plan, tightening laser supply and shifting sales toward higher‑margin 200G lanes — a structural boost to revenue and gross margins. AI Optics Boom: What 1.6T Ramp Means for the LITE Stock’s Prospect
• Positive Sentiment: Coverage highlights that coherent pluggable optics (CPO) orders are moving from “hype” into contracted backlog — improving revenue visibility and making late‑2027 scale more credible, which supports upside to forward guidance. CPO is Moving From Hype to Backlog for LITE: More Upside Ahead?
• Positive Sentiment: Commentary notes LITE shares have nearly doubled in the past month as AI optics demand, OCS backlog and growing CPO orders drive accelerating revenue and margin expansion — fueling momentum and fresh upward analyst attention. Lumentum Rises 99% in a Month: Are the Shares Still a Buy?
• Positive Sentiment: Macro/sector stories are rotating investor money beyond GPUs into AI infrastructure names; LITE appears on several “AI‑infrastructure” buy lists, increasing institutional interest and multiple expansion potential. Forget Nvidia, This Is the Stock to Buy For the AI Boom’s Next Leg Up
• Neutral Sentiment: Unusual options activity: traders bought roughly 13,981 call contracts (about +15% vs typical daily call volume) — a sign of speculative bullish positioning but not definitive proof of sustained buying.
• Neutral Sentiment: Relative comparisons vs. peers underline LITE’s stronger AI-driven revenue outlook versus some equipment vendors with slumping sales — useful context for positioning but not a direct catalyst. Lumentum vs. Amtech: Which Semiconductor Stock is the Better Buy?
• Negative Sentiment: Risk: the rally has produced a rich valuation and fast price moves; high expectations (and a stretched P/E) leave shares exposed to profit‑taking or any miss versus elevated forecasts.

Analyst Ratings Changes

A number of equities analysts have recently commented on the stock. JPMorgan Chase & Co. increased their price objective on shares of Lumentum to $565.00 and gave the stock an “overweight” rating in a research note on Wednesday, February 4th. Northland Securities set a $350.00 target price on Lumentum in a report on Wednesday, December 3rd. Wall Street Zen cut Lumentum from a “buy” rating to a “hold” rating in a research report on Saturday, November 1st. Needham & Company LLC boosted their price target on Lumentum to $550.00 and gave the stock a “buy” rating in a research report on Wednesday, February 4th. Finally, Rosenblatt Securities upped their price objective on Lumentum to $580.00 and gave the stock a “buy” rating in a research note on Wednesday, February 4th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $458.00.

Lumentum Trading Up 1.0%

The company has a debt-to-equity ratio of 0.06, a current ratio of 0.61 and a quick ratio of 0.45. The business has a 50-day simple moving average of $425.90 and a two-hundred day simple moving average of $277.51. The stock has a market cap of $48.18 billion, a price-to-earnings ratio of 206.97 and a beta of 1.51.

Lumentum (NASDAQ:LITE) last released its quarterly earnings data on Tuesday, February 3rd. The technology company reported $1.67 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.41 by $0.26. The company had revenue of $665.50 million during the quarter, compared to analysts’ expectations of $646.74 million. Lumentum had a return on equity of 17.27% and a net margin of 11.95%.The business’s revenue was up 65.5% on a year-over-year basis. During the same period last year, the firm posted $0.42 earnings per share. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. Equities analysts forecast that Lumentum Holdings Inc. will post 0.03 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Yuen Wupen sold 3,157 shares of the firm’s stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $538.00, for a total transaction of $1,698,466.00. Following the completion of the sale, the insider owned 88,439 shares in the company, valued at approximately $47,580,182. This trade represents a 3.45% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Penny Herscher sold 4,849 shares of Lumentum stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $535.48, for a total transaction of $2,596,542.52. Following the sale, the director directly owned 6,057 shares of the company’s stock, valued at $3,243,402.36. The trade was a 44.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 60,473 shares of company stock valued at $35,186,972 over the last ninety days. 0.43% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Lumentum

Several hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. grew its position in shares of Lumentum by 0.6% in the third quarter. Vanguard Group Inc. now owns 7,485,282 shares of the technology company’s stock valued at $1,217,930,000 after purchasing an additional 41,975 shares during the last quarter. Hood River Capital Management LLC boosted its stake in Lumentum by 82.1% in the 2nd quarter. Hood River Capital Management LLC now owns 2,206,453 shares of the technology company’s stock valued at $209,745,000 after purchasing an additional 994,551 shares during the period. Arrowstreet Capital Limited Partnership grew its holdings in Lumentum by 18.7% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company’s stock valued at $683,661,000 after buying an additional 291,591 shares in the last quarter. Geode Capital Management LLC increased its position in Lumentum by 9.6% during the 4th quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company’s stock worth $521,563,000 after buying an additional 123,265 shares during the period. Finally, Situational Awareness LP lifted its holdings in shares of Lumentum by 210.9% during the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock worth $478,577,000 after buying an additional 880,800 shares in the last quarter. 94.05% of the stock is currently owned by institutional investors and hedge funds.

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.