Lumentum (NASDAQ:LITE) Trading Down 11.2% After Insider Selling

Lumentum Holdings Inc. (NASDAQ:LITE) was down 11.2% during mid-day trading on Tuesday following insider selling activity. The stock traded as low as $681.10 and last traded at $695.19. Approximately 6,205,673 shares were traded during trading, an increase of 19% from the average daily volume of 5,210,936 shares. The stock had previously closed at $783.25.

Specifically, CFO Wajid Ali sold 5,302 shares of the business’s stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $691.13, for a total transaction of $3,664,371.26. Following the completion of the sale, the chief financial officer owned 66,287 shares in the company, valued at approximately $45,812,934.31. The trade was a 7.41% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.

Analyst Ratings Changes

LITE has been the topic of a number of recent research reports. Northland Securities set a $350.00 price target on shares of Lumentum in a research report on Wednesday, December 3rd. Zacks Research upgraded shares of Lumentum from a “hold” rating to a “strong-buy” rating in a report on Tuesday, December 2nd. Wolfe Research reaffirmed an “outperform” rating and set a $240.00 price target on shares of Lumentum in a research report on Wednesday, November 5th. Citigroup increased their price target on Lumentum to $560.00 and gave the company a “buy” rating in a report on Thursday, February 5th. Finally, Mizuho boosted their price objective on Lumentum to $645.00 and gave the stock an “outperform” rating in a research note on Tuesday, February 17th. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $495.19.

More Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Nvidia strategic deal: Nvidia committed to a $2 billion investment/partnership with Lumentum to accelerate optics R&D and U.S. photonics capacity — a direct, large-customer tie that secures demand and funding for Lumentum’s AI-related products. Read More.
• Positive Sentiment: Sector/analyst support: Multiple outlets and analysts (JPMorgan, Citi coverage) highlight Lumentum as a key beneficiary of a multi‑year optics upcycle driven by hyperscaler AI spend — reinforcing a longer-term demand thesis. Read More.
• Positive Sentiment: Analyst price-target move: Barclays raised its price target on LITE to $750 (equal-weight), which provides near-term institutional validation for higher valuations. Read More.
• Neutral Sentiment: Market/theme lift: Coverage notes the Nvidia news lifted the whole AI‑optics group (Coherent, Lumentum) — much of the move is theme-driven flows into AI infrastructure rather than fresh company-specific earnings. Read More.
• Neutral Sentiment: Repeated coverage: Multiple outlets repeat the Nvidia announcement (driving awareness) but provide limited new details on timing, contract terms or when capacity will come online — leaves some execution risk unquantified. Read More.
• Negative Sentiment: Insider selling: CFO Wajid Ali sold 5,302 shares (filed with the SEC) for roughly $3.66M, trimming his stake by ~7.4% — a signal some investors interpret as a negative despite common non-fundamental explanations. Read More.
• Negative Sentiment: Prominent sell-side voice: TV commentator Jim Cramer publicly said he would be a seller, not a buyer, after the recent run — a statement that can accelerate short-term profit-taking among retail/institutional investors. Read More.

Lumentum Trading Down 11.2%

The business’s 50-day simple moving average is $462.66 and its two-hundred day simple moving average is $298.55. The company has a current ratio of 0.61, a quick ratio of 0.45 and a debt-to-equity ratio of 0.06. The company has a market capitalization of $49.64 billion, a PE ratio of 213.25 and a beta of 1.38.

Lumentum (NASDAQ:LITE) last released its quarterly earnings results on Tuesday, February 3rd. The technology company reported $1.67 EPS for the quarter, topping the consensus estimate of $1.41 by $0.26. The business had revenue of $665.50 million for the quarter, compared to analysts’ expectations of $646.74 million. Lumentum had a return on equity of 17.27% and a net margin of 11.95%.The company’s revenue was up 65.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.42 earnings per share. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. On average, analysts predict that Lumentum Holdings Inc. will post 0.03 earnings per share for the current year.

Institutional Trading of Lumentum

Hedge funds have recently made changes to their positions in the stock. Parallel Advisors LLC boosted its stake in Lumentum by 16.0% during the 4th quarter. Parallel Advisors LLC now owns 326 shares of the technology company’s stock valued at $120,000 after acquiring an additional 45 shares during the last quarter. Allworth Financial LP raised its stake in shares of Lumentum by 6.4% in the 3rd quarter. Allworth Financial LP now owns 784 shares of the technology company’s stock valued at $128,000 after purchasing an additional 47 shares in the last quarter. UMB Bank n.a. raised its stake in shares of Lumentum by 5.2% in the 4th quarter. UMB Bank n.a. now owns 968 shares of the technology company’s stock valued at $357,000 after purchasing an additional 48 shares in the last quarter. Truvestments Capital LLC lifted its position in shares of Lumentum by 300.0% during the fourth quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock worth $28,000 after purchasing an additional 57 shares during the last quarter. Finally, Oregon Public Employees Retirement Fund grew its stake in Lumentum by 0.4% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 14,130 shares of the technology company’s stock worth $5,208,000 after purchasing an additional 60 shares in the last quarter. Institutional investors and hedge funds 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.