Lumentum (NASDAQ:LITE) Trading Down 8.4% – Here’s What Happened

Shares of Lumentum Holdings Inc. (NASDAQ:LITE) traded down 8.4% on Tuesday . The stock traded as low as $602.28 and last traded at $651.93. 5,576,137 shares were traded during trading, a decline of 3% from the average session volume of 5,751,576 shares. The stock had previously closed at $711.96.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. JPMorgan Chase & Co. boosted their target price on shares of Lumentum from $950.00 to $1,130.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. TD Cowen lowered their price target on shares of Lumentum from $995.00 to $800.00 and set a “hold” rating on the stock in a research report on Monday, July 13th. Weiss Ratings reiterated a “hold (c)” rating on shares of Lumentum in a research note on Friday, July 17th. Rosenblatt Securities boosted their price objective on shares of Lumentum from $900.00 to $1,300.00 and gave the company a “buy” rating in a report on Wednesday, May 6th. Finally, Zacks Research cut shares of Lumentum from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Fourteen research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $1,012.67.

Lumentum Trading Down 8.4%

The stock has a market capitalization of $50.72 billion, a P/E ratio of 120.73 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. The business has a 50-day moving average price of $841.23 and a two-hundred day moving average price of $730.69.

Lumentum (NASDAQ:LITE) last issued its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, topping analysts’ consensus estimates of $2.27 by $0.10. The company had revenue of $808.40 million for the quarter, compared to analysts’ expectations of $810.21 million. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.Lumentum’s revenue was up 90.1% on a year-over-year basis. During the same quarter last year, the business earned $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, analysts expect that Lumentum Holdings Inc. will post 6.42 EPS for the current fiscal year.

Insider Transactions at Lumentum

In related news, insider Vincent Retort sold 3,183 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $3,036,422.85. Following the sale, the insider owned 89,563 shares in the company, valued at approximately $85,438,623.85. This trade represents a 3.43% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 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 completion of the transaction, 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 SEC filing for this sale provides additional information. Over the last quarter, insiders sold 41,260 shares of company stock worth $38,859,220. Corporate insiders own 0.43% of the company’s stock.

Institutional Investors Weigh In On Lumentum

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Trust Asset Management LLC bought a new position in shares of Lumentum in the 2nd quarter valued at $703,000. First Community Trust NA acquired a new position in shares of Lumentum during the 2nd quarter worth $148,000. Tema ETFs LLC lifted its position in shares of Lumentum by 14.6% during the 2nd quarter. Tema ETFs LLC now owns 1,331 shares of the technology company’s stock worth $1,142,000 after buying an additional 170 shares during the last quarter. Nolet Wealth Management LLC bought a new stake in shares of Lumentum during the 2nd quarter worth $221,000. Finally, Farrell Financial LLC boosted its stake in Lumentum by 41.1% in the second quarter. Farrell Financial LLC now owns 573 shares of the technology company’s stock valued at $492,000 after buying an additional 167 shares in 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.