Lumentum (NASDAQ:LITE) Trading 10.4% Higher – Here’s Why

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price shot up 10.4% during mid-day trading on Friday . The company traded as high as $369.38 and last traded at $372.1150. 2,607,237 shares traded hands during mid-day trading, a decline of 17% from the average session volume of 3,153,329 shares. The stock had previously closed at $337.13.

Wall Street Analysts Forecast Growth

LITE has been the topic of a number of analyst reports. Needham & Company LLC upped their target price on shares of Lumentum to $290.00 and gave the stock a “buy” rating in a report on Monday, November 24th. Zacks Research upgraded Lumentum from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, December 2nd. 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. Wall Street Zen lowered Lumentum from a “buy” rating to a “hold” rating in a research note on Saturday, November 1st. Finally, Citigroup started coverage on Lumentum in a research report on Friday, August 29th. They set a “buy” rating and a $165.00 price target for the company. Two analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $222.13.

Lumentum Price Performance

The company has a current ratio of 1.37, a quick ratio of 1.02 and a debt-to-equity ratio of 2.77. The stock has a market capitalization of $26.33 billion, a PE ratio of 249.28 and a beta of 1.53. The business has a fifty day moving average price of $251.03 and a 200-day moving average price of $164.66.

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

Insider Buying and Selling

In other news, CAO Matthew Joseph Sepe sold 4,232 shares of Lumentum stock in a transaction dated Friday, November 7th. The stock was sold at an average price of $239.63, for a total value of $1,014,114.16. Following the transaction, the chief accounting officer owned 43,544 shares in the company, valued at approximately $10,434,448.72. The trade was a 8.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Jae Kim sold 1,367 shares of the business’s stock in a transaction dated Monday, November 17th. The shares were sold at an average price of $234.14, for a total value of $320,069.38. Following the completion of the sale, the senior vice president directly owned 38,570 shares of the company’s stock, valued at approximately $9,030,779.80. This trade represents a 3.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 28,612 shares of company stock worth $7,317,398 over the last 90 days. Insiders own 0.43% of the company’s stock.

Institutional Trading of Lumentum

Several hedge funds and other institutional investors have recently bought and sold shares of LITE. Vanguard Group Inc. increased its stake in shares of 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 during the period. PointState Capital LP purchased a new position in shares of Lumentum in the first quarter valued at about $213,503,000. Hood River Capital Management LLC raised its stake in shares of Lumentum by 82.1% during the second quarter. Hood River Capital Management LLC now owns 2,206,453 shares of the technology company’s stock valued at $209,745,000 after acquiring an additional 994,551 shares during the last quarter. Atreides Management LP raised its stake in shares of Lumentum by 6.8% during the first quarter. Atreides Management LP now owns 1,875,257 shares of the technology company’s stock valued at $116,904,000 after acquiring an additional 119,938 shares during the last quarter. Finally, Alliancebernstein L.P. boosted its holdings in shares of Lumentum by 1.1% during the first quarter. Alliancebernstein L.P. now owns 1,731,041 shares of the technology company’s stock worth $107,913,000 after purchasing an additional 19,085 shares during the period. Institutional investors own 94.05% of the company’s stock.

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.