Lumentum Holdings Inc. (NASDAQ:LITE – Get Free Report)’s stock price shot up 5.7% on Friday. The company traded as high as $559.00 and last traded at $538.59. 5,366,445 shares were traded during mid-day trading, a decline of 4% from the average daily volume of 5,589,168 shares. The stock had previously closed at $509.70.
Trending Headlines about Lumentum
Here are the key news stories impacting Lumentum this week:
- Positive Sentiment: Some commentary sees Lumentum as potentially undervalued after Marvell agreed to acquire it, arguing the deal highlights demand for optical interconnects—a potential bottleneck in AI data centers. Lumentum’s shares also rose alongside a broader recovery in optical stocks. Article: Lumentum Holdings Could Be 90% Undervalued Following The Marvell Deal Article: Optical stocks rally
- Neutral Sentiment: The proposed all-stock Marvell deal values Lumentum at about $115 billion, with Lumentum shareholders set to receive 4.5 Marvell shares per share. That is not a fixed cash offer: its implied value will move with Marvell’s stock. The transaction is expected to take time to close and remains subject to regulatory approval. Article: Marvell Agreed to Pay $1,132 a Share for Lumentum
- Positive Sentiment: A bullish technical view says Lumentum is oversold after a steep decline, while analysts’ earnings-estimate increases could support a recovery. Article: Lumentum is Poised for a Turnaround
- Negative Sentiment: Recent pressure reflects a broader sell-off in AI and optical shares, alongside analyst downgrades and lower price expectations. The sharp recent declines suggest investors remain cautious despite the proposed acquisition and the latest rebound. Article: Lumentum Shares Down After Analyst Downgrade Article: AI optical stocks slide
Wall Street Analysts Forecast Growth
A number of research firms recently issued reports on LITE. Mizuho set a $1,132.00 price target on Lumentum in a report on Monday. Weiss Ratings lowered shares of Lumentum from a “hold (c-)” rating to a “sell (d-)” rating in a report on Wednesday, August 19th. Zacks Research cut shares of Lumentum from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 12th. Deutsche Bank Aktiengesellschaft started coverage on shares of Lumentum in a research note on Monday, August 31st. They issued a “buy” rating and a $1,200.00 target price for the company. Finally, Stifel Nicolaus set a $806.00 target price on shares of Lumentum in a research note on Monday. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $1,081.61.
View Our Latest Research Report on LITE
Lumentum Price Performance
The company has a market capitalization of $48.85 billion, a price-to-earnings ratio of -6.84 and a beta of 1.64. The company has a current ratio of 1.61, a quick ratio of 1.40 and a debt-to-equity ratio of 0.01. The company has a 50 day moving average price of $902.48 and a 200 day moving average price of $800.69.
Lumentum (NASDAQ:LITE – Get Free Report) last issued its quarterly earnings results on Monday, November 2nd. The technology company reported $4.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.22 by $0.35. The business had revenue of $1.26 billion for the quarter, compared to analyst estimates of $1.26 billion. Lumentum had a positive return on equity of 28.85% and a negative net margin of 175.82%. The firm’s revenue for the quarter was up 136.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.10 earnings per share. As a group, equities research analysts forecast that Lumentum Holdings Inc. will post 19.80 earnings per share for the current year.
Insider Activity at Lumentum
In related news, insider Vincent Retort sold 38,663 shares of the business’s stock in a transaction that occurred 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 sale, 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 SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Wajid Ali sold 24,542 shares of the business’s stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $1,048.50, for a total transaction of $25,732,287.00. Following the sale, the chief financial officer directly owned 75,074 shares of the company’s stock, valued at approximately $78,715,089. This trade represents a 24.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 94,496 shares of company stock worth $85,978,498. Insiders own 0.28% of the company’s stock.
Institutional Trading of Lumentum
A number of institutional investors have recently bought and sold shares of the business. Allworth Financial LP boosted its stake in shares of Lumentum by 3.6% in the third quarter. Allworth Financial LP now owns 1,786 shares of the technology company’s stock valued at $1,735,000 after buying an additional 62 shares during the period. Eurizon Capital SGR S.p.A. increased its stake in Lumentum by 9.7% during the 3rd quarter. Eurizon Capital SGR S.p.A. now owns 10,540 shares of the technology company’s stock worth $10,238,000 after acquiring an additional 935 shares during the period. R Squared Ltd bought a new position in Lumentum during the 3rd quarter worth $223,000. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. raised its holdings in Lumentum by 25.3% in the 3rd quarter. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. now owns 610 shares of the technology company’s stock valued at $592,000 after acquiring an additional 123 shares in the last quarter. Finally, Artemis Wealth Advisors LLC raised its holdings in Lumentum by 28.6% in the 3rd quarter. Artemis Wealth Advisors LLC now owns 4,500 shares of the technology company’s stock valued at $4,371,000 after acquiring an additional 1,000 shares in the last quarter. Institutional investors and hedge funds own 94.05% of the company’s stock.
About Lumentum
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.
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