Lumentum (NASDAQ:LITE) Shares Gap Up – Should You Buy?

Lumentum Holdings Inc. (NASDAQ:LITE) gapped up prior to trading on Monday . The stock had previously closed at $66.61, but opened at $70.51. Lumentum shares last traded at $71.69, with a volume of 208,528 shares trading hands.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on LITE. UBS Group lifted their price target on shares of Lumentum from $93.00 to $96.00 and gave the company a “neutral” rating in a research report on Friday, February 7th. BNP Paribas raised shares of Lumentum from a “neutral” rating to an “outperform” rating and set a $92.00 price target for the company in a research report on Tuesday, March 11th. Raymond James raised shares of Lumentum from an “outperform” rating to a “strong-buy” rating and reduced their price target for the company from $96.00 to $82.00 in a research report on Monday. Rosenblatt Securities reissued a “buy” rating and issued a $110.00 price target on shares of Lumentum in a research report on Friday, February 7th. Finally, Barclays raised shares of Lumentum from an “underweight” rating to an “overweight” rating and lifted their price target for the company from $80.00 to $125.00 in a research report on Friday, January 17th. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating, nine have given a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $87.40.

Lumentum Stock Up 8.7 %

The company has a market capitalization of $5.01 billion, a P/E ratio of -9.42 and a beta of 1.03. The company has a debt-to-equity ratio of 2.94, a quick ratio of 3.60 and a current ratio of 4.76. The stock has a 50 day moving average price of $77.36 and a 200 day moving average price of $75.77.

Lumentum (NASDAQ:LITE) last released its earnings results on Thursday, February 13th. The technology company reported ($0.14) EPS for the quarter, missing analysts’ consensus estimates of $0.27 by ($0.41). Lumentum had a negative return on equity of 7.25% and a negative net margin of 36.98%. Equities research analysts forecast that Lumentum Holdings Inc. will post 0.03 earnings per share for the current fiscal year.

Insider Activity at Lumentum

In related news, CFO Wajid Ali sold 2,172 shares of the business’s stock in a transaction dated Tuesday, February 18th. The stock was sold at an average price of $78.34, for a total value of $170,154.48. Following the sale, the chief financial officer now directly owns 51,976 shares in the company, valued at approximately $4,071,799.84. The trade was a 4.01 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 0.19% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Lumentum

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. UMB Bank n.a. raised its stake in Lumentum by 301.2% in the 4th quarter. UMB Bank n.a. now owns 337 shares of the technology company’s stock valued at $28,000 after acquiring an additional 253 shares during the period. Jones Financial Companies Lllp grew its holdings in Lumentum by 54.2% during the 4th quarter. Jones Financial Companies Lllp now owns 370 shares of the technology company’s stock valued at $31,000 after buying an additional 130 shares in the last quarter. CoreCap Advisors LLC grew its holdings in Lumentum by 2,235.3% during the 4th quarter. CoreCap Advisors LLC now owns 397 shares of the technology company’s stock valued at $33,000 after buying an additional 380 shares in the last quarter. Quarry LP grew its holdings in Lumentum by 85.5% during the 3rd quarter. Quarry LP now owns 436 shares of the technology company’s stock valued at $28,000 after buying an additional 201 shares in the last quarter. Finally, J.Safra Asset Management Corp grew its holdings in Lumentum by 31.1% during the 4th quarter. J.Safra Asset Management Corp now owns 514 shares of the technology company’s stock valued at $43,000 after buying an additional 122 shares in the last quarter. 94.05% of the stock is currently owned by 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.