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

Lumentum Holdings Inc. (NASDAQ:LITE) shares gapped up before the market opened on Monday . The stock had previously closed at $51.27, but opened at $54.92. Lumentum shares last traded at $53.83, with a volume of 365,722 shares trading hands.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on LITE. Rosenblatt Securities reiterated a “buy” rating and issued a $110.00 target price on shares of Lumentum in a research report on Friday, February 7th. Needham & Company LLC reissued a “buy” rating and set a $110.00 price objective on shares of Lumentum in a research report on Friday, February 7th. Jefferies Financial Group assumed coverage on Lumentum in a research report on Friday, February 21st. They issued a “buy” rating on the stock. Raymond James upgraded 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 report on Monday, March 24th. Finally, UBS Group increased their price objective on Lumentum from $93.00 to $96.00 and gave the stock a “neutral” rating in a report on Friday, February 7th. Two research analysts have rated the stock with a sell rating, three have assigned a hold rating, ten have assigned a buy rating and two have assigned a strong buy rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $87.40.

Lumentum Trading Up 0.6 %

The company’s fifty day moving average is $66.08 and its 200-day moving average is $75.65. The company has a current ratio of 4.76, a quick ratio of 3.60 and a debt-to-equity ratio of 2.94. The firm has a market capitalization of $3.65 billion, a P/E ratio of -6.85 and a beta of 1.14.

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

Insiders Place Their Bets

In other Lumentum news, CFO Wajid Ali sold 2,172 shares of the stock in a transaction on Tuesday, February 18th. The shares were sold at an average price of $78.34, for a total value of $170,154.48. Following the completion of the sale, the chief financial officer now directly owns 51,976 shares of the company’s stock, valued at $4,071,799.84. This represents a 4.01 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Company insiders own 0.19% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in LITE. UMB Bank n.a. grew its position in Lumentum by 301.2% during the fourth quarter. UMB Bank n.a. now owns 337 shares of the technology company’s stock worth $28,000 after buying an additional 253 shares in the last quarter. Jones Financial Companies Lllp grew its holdings in shares of Lumentum by 54.2% during the 4th quarter. Jones Financial Companies Lllp now owns 370 shares of the technology company’s stock worth $31,000 after purchasing an additional 130 shares in the last quarter. CoreCap Advisors LLC increased its position in shares of Lumentum by 2,235.3% during the fourth quarter. CoreCap Advisors LLC now owns 397 shares of the technology company’s stock valued at $33,000 after purchasing an additional 380 shares during the period. J.Safra Asset Management Corp raised its stake in shares of Lumentum by 31.1% in the fourth quarter. J.Safra Asset Management Corp now owns 514 shares of the technology company’s stock valued at $43,000 after purchasing an additional 122 shares in the last quarter. Finally, Quadrant Capital Group LLC lifted its position in Lumentum by 27.2% in the fourth quarter. Quadrant Capital Group LLC now owns 766 shares of the technology company’s stock worth $64,000 after purchasing an additional 164 shares during the period. Institutional investors own 94.05% of the company’s stock.

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.