Lumentum (NASDAQ:LITE) Trading 2.2% Higher – Here’s Why

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price shot up 2.2% on Monday . The company traded as high as $918.84 and last traded at $914.76. Approximately 3,200,136 shares traded hands during trading, a decline of 43% from the average daily volume of 5,644,238 shares. The stock had previously closed at $895.00.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the stock. Stifel Nicolaus lifted their price objective on shares of Lumentum from $800.00 to $1,100.00 and gave the company a “buy” rating in a research report on Tuesday, May 5th. Morgan Stanley upped their target price on shares of Lumentum from $900.00 to $1,000.00 and gave the stock an “equal weight” rating in a research report on Wednesday, August 12th. Needham & Company LLC reissued a “buy” rating and set a $1,040.00 price target on shares of Lumentum in a report on Wednesday, August 12th. TD Cowen increased their price target on Lumentum from $800.00 to $820.00 and gave the company a “hold” rating in a research note on Wednesday, August 12th. Finally, Raymond James Financial restated an “outperform” rating and set a $1,036.00 price objective on shares of Lumentum in a research report on Wednesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $1,047.18.

Lumentum Price Performance

The stock has a market capitalization of $82.05 billion, a price-to-earnings ratio of -11.13 and a beta of 1.50. The company has a current ratio of 1.68, a quick ratio of 1.40 and a debt-to-equity ratio of 0.01. The stock has a 50-day simple moving average of $811.83 and a 200 day simple moving average of $806.69.

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

Insider Activity

In other news, Director Isaac Hosojiro Harris sold 1,416 shares of Lumentum stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $1,000.08, for a total value of $1,416,113.28. Following the transaction, the director owned 6,984 shares of the company’s stock, valued at $6,984,558.72. This trade represents a 16.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael E. Hurlston sold 548 shares of the firm’s stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $958.66, for a total transaction of $525,345.68. Following the completion of the transaction, the chief executive officer owned 186,951 shares in the company, valued at $179,222,445.66. The trade was a 0.29% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 64,563 shares of company stock valued at $55,448,750. Corporate insiders own 0.43% of the company’s stock.

Institutional Investors Weigh In On Lumentum

A number of hedge funds have recently bought and sold shares of LITE. Advisors Asset Management Inc. boosted its position in shares of Lumentum by 36.8% in the first quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company’s stock valued at $59,000 after acquiring an additional 254 shares during the period. NewEdge Advisors LLC increased its position in Lumentum by 109.9% during the first quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company’s stock worth $747,000 after acquiring an additional 6,275 shares during the period. Empowered Funds LLC raised its stake in Lumentum by 9.1% during the 1st quarter. Empowered Funds LLC now owns 8,139 shares of the technology company’s stock valued at $507,000 after purchasing an additional 680 shares during the last quarter. Hsbc Holdings PLC bought a new position in Lumentum during the second quarter valued at about $298,000. Finally, Arrowstreet Capital Limited Partnership acquired a new position in Lumentum in the 2nd quarter valued at approximately $1,712,000. 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.