Lumentum (NASDAQ:LITE) Stock Price Down 3.6% – Time to Sell?

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price was down 3.6% on Thursday. The stock traded as low as $591.17 and last traded at $624.65. Approximately 4,428,726 shares changed hands during mid-day trading, a decline of 21% from the average session volume of 5,588,465 shares. The stock had previously closed at $648.06.

Latest Lumentum News

Here’s some of the latest news about LITE:

• Positive Sentiment: Lumentum rose sharply amid a broad technology-sector rally, which may have supported investor demand for the stock. Article: Lumentum rises 15% amid broad technology rally
• Neutral Sentiment: Marvell added three independent directors to its board ahead of its proposed Lumentum acquisition. The appointments may reflect preparation for the transaction, but do not by themselves confirm its completion. Article: Marvell adds three independent directors to board ahead of proposed Lumentum acquisition
• Negative Sentiment: UBS issued a pessimistic forecast for Lumentum, adding to concerns about the stock’s outlook. Article: UBS Group Issues Pessimistic Forecast for Lumentum Stock Price

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Citigroup upped their target price on Lumentum from $1,200.00 to $1,400.00 and gave the company a “buy” rating in a research report on Monday, September 28th. UBS Group reduced their price objective on Lumentum from $960.00 to $686.00 and set a “neutral” rating for the company in a research note on Tuesday. Bank of America reduced their price objective on Lumentum from $1,100.00 to $1,000.00 and set a “neutral” rating for the company in a research note on Wednesday, August 12th. Mizuho set a $1,132.00 price objective on Lumentum in a report on Monday, November 2nd. Finally, Evercore started coverage on shares of Lumentum in a research report on Monday, August 31st. They set an “outperform” rating and a $1,100.00 target price on the stock. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Lumentum has a consensus rating of “Moderate Buy” and a consensus target price of $1,053.17.

Lumentum Stock Down 3.6%

The business’s fifty day moving average price is $877.15 and its 200 day moving average price is $805.47. The company has a quick ratio of 1.27, a current ratio of 1.61 and a debt-to-equity ratio of 0.01. The firm has a market capitalization of $56.66 billion, a PE ratio of -7.94 and a beta of 1.64.

Lumentum (NASDAQ:LITE) last released its quarterly earnings results on Monday, November 2nd. The technology company reported $4.57 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.22 by $0.35. The firm 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 business’s revenue was up 136.5% on a year-over-year basis. During the same quarter last year, the company posted $1.10 earnings per share. On average, equities research analysts forecast that Lumentum Holdings Inc. will post 19.93 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Lumentum news, CFO Wajid Ali sold 24,542 shares of the 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 completion of 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 position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 307 shares of Lumentum stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $945.00, for a total value of $290,115.00. Following the completion of the transaction, the insider owned 108,320 shares in the company, valued at $102,362,400. This trade represents a 0.28% 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. Insiders have sold a total of 94,496 shares of company stock valued at $85,978,498 over the last ninety days. 0.28% of the stock is owned by insiders.

Hedge Funds Weigh In On Lumentum

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Jupiter Topco LLC acquired a new position in Lumentum in the 2nd quarter valued at $1,621,396,000. Amundi lifted its stake in shares of Lumentum by 188.7% in the 2nd quarter. Amundi now owns 658,427 shares of the technology company’s stock worth $564,970,000 after acquiring an additional 430,355 shares during the period. Winslow Capital Management LLC lifted its stake in shares of Lumentum by 9.3% in the 3rd quarter. Winslow Capital Management LLC now owns 650,929 shares of the technology company’s stock worth $632,221,000 after acquiring an additional 55,368 shares during the period. WT Asset Management Ltd purchased a new stake in shares of Lumentum in the second quarter valued at about $494,688,000. Finally, Janus Henderson Group PLC boosted its holdings in shares of Lumentum by 163.2% in the first quarter. Janus Henderson Group PLC now owns 567,182 shares of the technology company’s stock valued at $398,590,000 after acquiring an additional 351,676 shares in the last quarter. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

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.