Lumentum (NASDAQ:LITE) Shares Up 15.1% – Still a Buy?

Shares of Lumentum Holdings Inc. (NASDAQ:LITE) rose 15.1% during trading on Thursday . The stock traded as high as $698.28 and last traded at $693.24. Approximately 5,485,023 shares traded hands during trading, a decline of 5% from the average session volume of 5,757,249 shares. The stock had previously closed at $602.35.

Wall Street Analysts Forecast Growth

LITE has been the topic of several recent analyst reports. Craig Hallum increased their target price on shares of Lumentum from $900.00 to $1,150.00 in a research note on Wednesday, May 6th. Needham & Company LLC restated a “buy” rating and issued a $1,040.00 price target on shares of Lumentum in a research note on Tuesday, June 9th. Susquehanna upped their price target on Lumentum from $550.00 to $1,100.00 and gave the stock a “positive” rating in a report on Monday, April 20th. Mizuho set a $1,100.00 price target on Lumentum in a research report on Wednesday, May 6th. Finally, Morgan Stanley raised their price objective on Lumentum from $710.00 to $900.00 and gave the company an “equal weight” rating in a report on Wednesday, May 6th. Fourteen equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,012.67.

Lumentum Trading Up 15.1%

The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97. The firm has a market capitalization of $53.93 billion, a PE ratio of 128.38 and a beta of 1.48. The company’s fifty day simple moving average is $831.15 and its 200-day simple moving average is $734.30.

Lumentum (NASDAQ:LITE) last released its earnings results on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, topping analysts’ consensus estimates of $2.27 by $0.10. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The business had revenue of $808.40 million during the quarter, compared to analysts’ expectations of $810.21 million. During the same quarter in the previous year, the company earned $0.57 earnings per share. The company’s quarterly revenue was up 90.1% on a year-over-year basis. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, sell-side analysts expect that Lumentum Holdings Inc. will post 6.42 earnings per share for the current fiscal year.

Insider Activity at Lumentum

In other Lumentum news, Director Isaac Hosojiro Harris sold 1,416 shares of the business’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $1,000.08, for a total transaction of $1,416,113.28. Following the completion of the sale, the director directly owned 6,984 shares in the company, valued at approximately $6,984,558.72. The trade was a 16.86% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Wajid Ali sold 2,487 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $953.95, for a total value of $2,372,473.65. Following the completion of the transaction, the chief financial officer owned 60,951 shares in the company, valued at approximately $58,144,206.45. This trade represents a 3.92% decrease in their position. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 41,260 shares of company stock worth $38,859,220 in the last quarter. Corporate insiders own 0.43% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Arrowstreet Capital Limited Partnership grew its holdings in shares of Lumentum by 8,579.2% during the third quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company’s stock worth $254,350,000 after buying an additional 1,545,199 shares in the last quarter. Norges Bank purchased a new position in shares of Lumentum in the fourth quarter worth about $474,495,000. Value Aligned Research Advisors LLC purchased a new position in shares of Lumentum in the fourth quarter worth about $432,062,000. Situational Awareness LP boosted its position in 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 acquiring an additional 880,800 shares during the last quarter. Finally, Aspex Management HK Ltd purchased a new stake in Lumentum during the 4th quarter valued at about $251,363,000. Hedge funds and other institutional investors own 94.05% of the company’s stock.

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.