Lumentum (NASDAQ:LITE) Upgraded by Zacks Research to Strong-Buy Rating

Zacks Research upgraded shares of Lumentum (NASDAQ:LITE) from a hold rating to a strong-buy rating in a research note released on Thursday,Zacks.com reports.

Several other research analysts have also recently weighed in on the stock. Citic Securities boosted their price objective on shares of Lumentum from $620.00 to $1,186.00 in a research report on Monday, May 11th. B. Riley Financial reiterated a “buy” rating on shares of Lumentum in a research report on Friday, May 1st. Barclays lifted their target price on Lumentum from $750.00 to $1,000.00 and gave the company an “equal weight” rating in a research note on Wednesday, May 6th. Loop Capital lifted their target price on Lumentum from $900.00 to $1,400.00 and gave the company a “buy” rating in a research note on Tuesday, May 5th. Finally, Raymond James Financial restated an “outperform” rating and set a $1,036.00 target price on shares of Lumentum in a research report on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Lumentum has an average rating of “Moderate Buy” and an average price target of $1,044.67.

Lumentum Trading Down 1.4%

LITE opened at $866.71 on Thursday. 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 market capitalization of $77.74 billion, a PE ratio of -10.54 and a beta of 1.50. Lumentum has a 1-year low of $115.89 and a 1-year high of $1,085.68. The firm has a 50-day moving average price of $809.76 and a two-hundred day moving average price of $790.21.

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

Insider Buying and Selling at Lumentum

In related news, SVP Jae Kim sold 1,904 shares of the business’s stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $827.82, for a total transaction of $1,576,169.28. Following the completion of the sale, the senior vice president directly owned 42,096 shares of the company’s stock, valued at $34,847,910.72. The trade was a 4.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at 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 Isaac Hosojiro Harris sold 1,416 shares of the 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 transaction of $1,416,113.28. Following the completion of the transaction, the director owned 6,984 shares in the company, valued at $6,984,558.72. This represents a 16.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 16,352 shares of company stock valued at $14,315,562. 0.43% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. TD Waterhouse Canada Inc. boosted its position in shares of Lumentum by 150.4% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 27,429 shares of the technology company’s stock worth $21,978,000 after purchasing an additional 16,477 shares during the last quarter. Concurrent Investment Advisors LLC increased its holdings in Lumentum by 6.6% in the second quarter. Concurrent Investment Advisors LLC now owns 4,388 shares of the technology company’s stock valued at $3,765,000 after purchasing an additional 270 shares during the last quarter. NEOS Investment Management LLC increased its holdings in Lumentum by 416.9% in the second quarter. NEOS Investment Management LLC now owns 53,187 shares of the technology company’s stock valued at $45,638,000 after purchasing an additional 42,897 shares during the last quarter. Power Wealth Management LLC lifted its stake in Lumentum by 51.0% in the second quarter. Power Wealth Management LLC now owns 515 shares of the technology company’s stock valued at $442,000 after buying an additional 174 shares during the period. Finally, AXQ Capital LP acquired a new position in Lumentum in the second quarter valued at about $5,371,000. Institutional investors and hedge funds own 94.05% of the company’s stock.

Lumentum News Roundup

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Northland Securities raised its Lumentum earnings forecasts substantially. The firm lifted its FY2027 EPS estimate to $19.81 from $14.97, with quarterly estimates now ranging from $3.81 in Q1 to $6.20 in Q4. Northland maintained an “Outperform” rating and a $1,200 price target, supporting the bullish case for continued earnings growth. Northland Securities analyst estimate report
• Positive Sentiment: Lumentum is being highlighted as an AI-infrastructure beneficiary. Analysts and financial publications point to rising demand for optical networking equipment as data centers expand to support artificial intelligence workloads. Lumentum is positioned across the optics and networking portions of that buildout. Beyond Chipmakers: 4 Stocks to Buy That Power AI Data Center Expansion
• Positive Sentiment: LITE was added to Zacks’ Rank #1 momentum-stock list. The designation may attract momentum-oriented investors and reinforces the stock’s strong recent performance. Best Momentum Stocks to Buy for August 21st
• Neutral Sentiment: A report on data-center construction emphasized the enormous fiber requirements of new AI facilities, a potential long-term demand driver for optical-component suppliers such as Lumentum. However, the article provided limited company-specific financial updates. A Single Meta Data Center Will Require “8 Million Miles of Fiber”
• Negative Sentiment: Valuation concerns could be limiting further upside. A Seeking Alpha analysis characterized Lumentum as increasingly expensive after its sharp rally. With the shares near their 52-week high and the company still reporting a negative net margin, some investors may be taking profits despite the favorable growth outlook. Lumentum: It’s Getting Expensive

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.