Lumentum (NASDAQ:LITE) Stock Price Up 1.2% – Should You Buy?

Lumentum Holdings Inc. (NASDAQ:LITE) rose 1.2% during trading on Wednesday . The stock traded as high as $719.12 and last traded at $707.10. Approximately 2,572,510 shares changed hands during mid-day trading, a decline of 57% from the average daily volume of 5,917,500 shares. The stock had previously closed at $698.91.

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. BNP Paribas Exane increased their price target on shares of Lumentum from $1,040.00 to $1,300.00 in a research note on Wednesday, May 6th. Weiss Ratings reissued a “hold (c)” rating on shares of Lumentum in a research report on Tuesday, April 21st. Zacks Research lowered Lumentum from a “strong-buy” rating to a “hold” rating in a research note on Monday. Citigroup raised their price objective on Lumentum from $800.00 to $1,100.00 and gave the company a “buy” rating in a research report on Tuesday, April 21st. Finally, B. Riley Financial reiterated a “buy” rating on shares of Lumentum in a report on Friday, May 1st. Fourteen equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $1,021.95.

Lumentum Stock Performance

The stock’s 50-day simple moving average is $883.44 and its 200-day simple moving average is $697.36. The stock has a market cap of $62.40 billion, a price-to-earnings ratio of 148.52 and a beta of 1.48. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE) last issued its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share 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 company had revenue of $808.40 million during the quarter, compared to the consensus estimate of $810.21 million. During the same quarter in the prior year, the firm posted $0.57 EPS. The firm’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. Analysts forecast that Lumentum Holdings Inc. will post 6.4 earnings per share for the current fiscal year.

Insider Transactions at Lumentum

In other news, insider Yuen Wupen sold 3,210 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 $3,062,179.50. Following the sale, the insider directly owned 81,488 shares in the company, valued at approximately $77,735,477.60. This trade represents a 3.79% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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. Also, Director Ian Small sold 4,954 shares of Lumentum stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $868.07, for a total transaction of $4,300,418.78. Following the sale, the director directly owned 21,008 shares in the company, valued at $18,236,414.56. This trade represents a 19.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 41,260 shares of company stock valued at $38,859,220. 0.43% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Tema ETFs LLC increased its holdings in Lumentum by 14.6% in the 2nd quarter. Tema ETFs LLC now owns 1,331 shares of the technology company’s stock worth $1,142,000 after purchasing an additional 170 shares in the last quarter. Nolet Wealth Management LLC acquired a new stake in shares of Lumentum during the second quarter valued at about $221,000. Farrell Financial LLC boosted its stake in shares of Lumentum by 41.1% during the second quarter. Farrell Financial LLC now owns 573 shares of the technology company’s stock valued at $492,000 after purchasing an additional 167 shares in the last quarter. E. Ohman J or Asset Management AB grew its holdings in shares of Lumentum by 944.2% during the second quarter. E. Ohman J or Asset Management AB now owns 25,061 shares of the technology company’s stock worth $21,504,000 after purchasing an additional 22,661 shares during the last quarter. Finally, Handelsbanken Fonder AB grew its holdings in shares of Lumentum by 84.5% during the second quarter. Handelsbanken Fonder AB now owns 53,040 shares of the technology company’s stock worth $45,512,000 after purchasing an additional 24,293 shares during the last quarter. 94.05% of the stock is currently owned by institutional investors.

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.