Lumentum (NASDAQ:LITE) Trading Down 13.1% – Here’s Why

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price was down 13.1% during mid-day trading on Thursday . The stock traded as low as $234.00 and last traded at $233.6660. Approximately 6,472,973 shares changed hands during trading, an increase of 115% from the average daily volume of 3,009,497 shares. The stock had previously closed at $268.92.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. Northland Securities set a $250.00 target price on Lumentum in a report on Wednesday, November 5th. Wolfe Research restated an “outperform” rating and set a $240.00 target price on shares of Lumentum in a research report on Wednesday, November 5th. Citigroup initiated coverage on shares of Lumentum in a research note on Friday, August 29th. They issued a “buy” rating and a $165.00 price target for the company. JPMorgan Chase & Co. upped their target price on Lumentum from $145.00 to $185.00 and gave the stock an “overweight” rating in a research report on Thursday, October 16th. Finally, Rosenblatt Securities boosted their price objective on Lumentum to $280.00 and gave the stock a “buy” rating in a report on Wednesday, November 5th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $196.88.

Lumentum Stock Down 13.3%

The stock has a 50-day simple moving average of $186.34 and a 200-day simple moving average of $129.37. The firm has a market capitalization of $16.54 billion, a PE ratio of 156.54 and a beta of 1.48. The company has a quick ratio of 1.02, a current ratio of 1.37 and a debt-to-equity ratio of 2.77.

Lumentum (NASDAQ:LITE) last issued its earnings results on Tuesday, November 4th. The technology company reported $1.10 earnings per share for the quarter, topping analysts’ consensus estimates of $1.03 by $0.07. The firm had revenue of $533.80 million during the quarter, compared to analyst estimates of $525.10 million. Lumentum had a net margin of 6.11% and a return on equity of 4.62%. The company’s quarterly revenue was up 58.4% on a year-over-year basis. During the same quarter last year, the business earned $0.18 earnings per share. Lumentum has set its Q2 2026 guidance at 1.300-1.500 EPS. Analysts forecast that Lumentum Holdings Inc. will post 0.03 EPS for the current year.

Insider Buying and Selling at Lumentum

In related news, Director Isaac Hosojiro Harris sold 7,200 shares of Lumentum stock in a transaction on Friday, November 7th. The stock was sold at an average price of $243.32, for a total transaction of $1,751,904.00. Following the completion of the sale, the director owned 9,764 shares of the company’s stock, valued at approximately $2,375,776.48. This trade represents a 42.44% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Yuen Wupen sold 3,282 shares of Lumentum stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $119.25, for a total value of $391,378.50. Following the sale, the insider owned 104,554 shares of the company’s stock, valued at approximately $12,468,064.50. This trade represents a 3.04% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 37,965 shares of company stock worth $7,810,818. 0.43% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its stake in Lumentum by 0.6% in the third quarter. Vanguard Group Inc. now owns 7,485,282 shares of the technology company’s stock worth $1,217,930,000 after buying an additional 41,975 shares in the last quarter. PointState Capital LP purchased a new stake in shares of Lumentum during the first quarter worth about $213,503,000. Hood River Capital Management LLC grew its stake in shares of Lumentum by 82.1% in the second quarter. Hood River Capital Management LLC now owns 2,206,453 shares of the technology company’s stock worth $209,745,000 after purchasing an additional 994,551 shares during the last quarter. Atreides Management LP grew its stake in shares of Lumentum by 6.8% in the first quarter. Atreides Management LP now owns 1,875,257 shares of the technology company’s stock worth $116,904,000 after purchasing an additional 119,938 shares during the last quarter. Finally, Alliancebernstein L.P. increased its holdings in Lumentum by 1.1% during the 1st quarter. Alliancebernstein L.P. now owns 1,731,041 shares of the technology company’s stock valued at $107,913,000 after purchasing an additional 19,085 shares during the period. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

Lumentum Company Profile

Lumentum Holdings Inc manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables.