Lumentum (NASDAQ:LITE) Shares Gap Down – Should You Sell?

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $577.15, but opened at $548.22. Lumentum shares last traded at $560.4260, with a volume of 1,693,791 shares changing hands.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the company. JPMorgan Chase & Co. boosted their price objective on Lumentum to $565.00 and gave the company an “overweight” rating in a report on Wednesday, February 4th. Needham & Company LLC lifted their price target on shares of Lumentum to $550.00 and gave the company a “buy” rating in a report on Wednesday, February 4th. Northland Securities set a $350.00 target price on shares of Lumentum in a report on Wednesday, December 3rd. UBS Group upped their target price on Lumentum from $215.00 to $455.00 and gave the company a “neutral” rating in a report on Wednesday, February 4th. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Lumentum in a research report on Monday, December 29th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, Lumentum presently has an average rating of “Moderate Buy” and an average price target of $444.94.

Lumentum Stock Performance

The company has a quick ratio of 0.45, a current ratio of 0.61 and a debt-to-equity ratio of 0.06. The firm has a market capitalization of $40.22 billion, a price-to-earnings ratio of 172.66 and a beta of 1.51. The company has a 50-day moving average price of $372.86 and a 200-day moving average price of $242.80.

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

Insider Buying and Selling at Lumentum

In other Lumentum news, SVP Jae Kim sold 1,367 shares of the business’s stock in a transaction dated Monday, November 17th. The shares were sold at an average price of $234.14, for a total transaction of $320,069.38. Following the sale, the senior vice president directly owned 38,570 shares in the company, valued at approximately $9,030,779.80. The trade was a 3.42% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Yuen Wupen sold 822 shares of the business’s stock in a transaction that occurred on Wednesday, November 19th. The stock was sold at an average price of $258.96, for a total value of $212,865.12. Following the sale, the insider directly owned 95,077 shares in the company, valued at approximately $24,621,139.92. The trade was a 0.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 7,180 shares of company stock valued at $1,847,480. Company insiders own 0.43% of the company’s stock.

Institutional Trading of Lumentum

A number of large investors have recently added to or reduced their stakes in the business. Norges Bank acquired a new stake in shares of Lumentum during the fourth quarter worth $474,495,000. Zweig DiMenna Associates LLC increased its position in shares of Lumentum by 0.5% in the fourth quarter. Zweig DiMenna Associates LLC now owns 131,567 shares of the technology company’s stock worth $48,494,000 after acquiring an additional 617 shares in the last quarter. Eurizon Capital SGR S.p.A. acquired a new stake in shares of Lumentum during the fourth quarter valued at approximately $648,000. Andar Capital Management HK Ltd purchased a new stake in shares of Lumentum in the 4th quarter valued at approximately $4,325,000. Finally, Savant Capital LLC acquired a new position in Lumentum in the 4th quarter worth approximately $245,000. 94.05% of the stock is currently owned by institutional investors.

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.