Lumentum (NASDAQ:LITE) Stock Price Down 5% After Insider Selling

Lumentum Holdings Inc. (NASDAQ:LITE) was down 5% during trading on Tuesday after an insider sold shares in the company. The company traded as low as $854.13 and last traded at $868.95. 3,815,619 shares traded hands during trading, a decline of 32% from the average session volume of 5,632,734 shares. The stock had previously closed at $914.76.

Specifically, insider Yuen Wupen sold 500 shares of the firm’s stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $895.00, for a total value of $447,500.00. Following the sale, the insider directly owned 118,127 shares of the company’s stock, valued at approximately $105,723,665. This trade represents a 0.42% decrease in their ownership of the stock. The sale was disclosed in a document filed 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, insider Yuen Wupen sold 500 shares of the company’s stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $940.95, for a total value of $470,475.00. Following the transaction, the insider directly owned 118,627 shares of the company’s stock, valued at approximately $111,622,075.65. The trade was a 0.42% 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 other news, CEO Michael E. Hurlston sold 548 shares of the stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $958.66, for a total transaction of $525,345.68. Following the transaction, the chief executive officer owned 186,951 shares in the company, valued at $179,222,445.66. This trade represents a 0.29% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on LITE shares. Barclays boosted their price target on shares of Lumentum from $750.00 to $1,000.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 6th. Northland Securities boosted their target price on shares of Lumentum from $1,000.00 to $1,200.00 and gave the stock an “outperform” rating in a research note on Wednesday, June 3rd. UBS Group set a $820.00 price target on shares of Lumentum in a research report on Wednesday, August 12th. Zacks Research raised shares of Lumentum from a “hold” rating to a “strong-buy” rating in a research note on Thursday, August 20th. Finally, Morgan Stanley boosted their price objective on Lumentum from $900.00 to $1,000.00 and gave the stock an “equal weight” rating in a research note on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $1,053.83.

Lumentum Trading Down 2.6%

The stock has a market capitalization of $76.05 billion, a PE ratio of -10.31 and a beta of 1.53. The company’s 50 day moving average price is $813.66 and its two-hundred day moving average price is $813.27. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.68 and a quick ratio of 1.40.

Lumentum (NASDAQ:LITE) last announced its quarterly earnings data on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.97 by $0.26. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The company had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $987.70 million. During the same quarter in the prior year, the company earned $0.88 EPS. Lumentum’s revenue was up 109.3% compared to the same quarter last year. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, analysts expect that Lumentum Holdings Inc. will post 19.76 earnings per share for the current year.

Institutional Investors Weigh In On Lumentum

Several hedge funds and other institutional investors have recently made changes to their positions in LITE. Hilton Head Capital Partners LLC purchased a new position in shares of Lumentum during the 1st quarter worth $25,000. Sachetta LLC boosted its holdings in Lumentum by 118.8% in the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock valued at $25,000 after purchasing an additional 19 shares during the last quarter. Meeder Asset Management Inc. acquired a new position in Lumentum in the 2nd quarter valued at about $40,000. Keating Financial Advisory Services Inc. purchased a new stake in shares of Lumentum in the 2nd quarter valued at approximately $41,000. Finally, Fiduciary Financial Advisors purchased a new stake in shares of Lumentum in the 2nd quarter valued at approximately $42,000. Institutional investors and hedge funds own 94.05% of the company’s stock.

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.