Lumentum (NASDAQ:LITE) Trading Up 8.2% – Time to Buy?

Lumentum Holdings Inc. (NASDAQ:LITE) rose 8.2% during trading on Thursday . The stock traded as high as $903.00 and last traded at $891.22. Approximately 6,015,840 shares were traded during mid-day trading, a decline of 1% from the average daily volume of 6,054,270 shares. The stock had previously closed at $824.01.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the stock. UBS Group lifted their target price on shares of Lumentum from $215.00 to $455.00 and gave the company a “neutral” rating in a research note on Wednesday, February 4th. B. Riley Financial raised shares of Lumentum from a “neutral” rating to a “buy” rating and increased their price target for the stock from $147.00 to $526.00 in a research note on Wednesday, February 4th. JPMorgan Chase & Co. raised their price objective on shares of Lumentum to $950.00 and gave the stock an “overweight” rating in a report on Thursday, April 9th. Needham & Company LLC lifted their price objective on Lumentum to $850.00 and gave the company a “buy” rating in a research report on Wednesday, March 4th. Finally, Susquehanna upped their target price on Lumentum to $550.00 and gave the stock a “positive” rating in a report on Wednesday, February 4th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Lumentum currently has an average rating of “Moderate Buy” and a consensus target price of $629.44.

Lumentum Stock Up 0.3%

The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.45 and a current ratio of 0.61. The stock’s 50-day moving average price is $710.25 and its two-hundred day moving average price is $438.19. The stock has a market capitalization of $63.84 billion, a PE ratio of 274.25 and a beta of 1.38.

Lumentum (NASDAQ:LITE) last issued its quarterly earnings results on Tuesday, February 3rd. The technology company reported $1.67 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.41 by $0.26. Lumentum had a net margin of 11.95% and a return on equity of 17.27%. The company had revenue of $665.50 million during the quarter, compared to analysts’ expectations of $646.74 million. During the same period last year, the company posted $0.42 EPS. Lumentum’s revenue was up 65.5% on a year-over-year basis. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. As a group, analysts expect that Lumentum Holdings Inc. will post 0.03 EPS for the current fiscal year.

Insider Buying and Selling at Lumentum

In other news, insider Vincent Retort sold 45,026 shares of Lumentum stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $591.32, for a total transaction of $26,624,774.32. Following the completion of the transaction, the insider directly owned 102,455 shares in the company, valued at approximately $60,583,690.60. This trade represents a 30.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Penny Herscher sold 4,849 shares of the business’s stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $535.48, for a total value of $2,596,542.52. Following the completion of the sale, the director directly owned 6,057 shares in the company, valued at approximately $3,243,402.36. This represents a 44.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 65,775 shares of company stock worth $38,851,343 over the last three months. Company insiders own 0.43% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in LITE. Advisors Asset Management Inc. grew its stake in shares of Lumentum by 36.8% in the first quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company’s stock worth $59,000 after acquiring an additional 254 shares during the last quarter. NewEdge Advisors LLC raised its position in shares of Lumentum by 109.9% in the 1st quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company’s stock worth $747,000 after purchasing an additional 6,275 shares during the last quarter. Empowered Funds LLC boosted its stake in Lumentum by 9.1% in the 1st quarter. Empowered Funds LLC now owns 8,139 shares of the technology company’s stock worth $507,000 after purchasing an additional 680 shares in the last quarter. Hsbc Holdings PLC purchased a new stake in Lumentum during the 2nd quarter valued at about $298,000. Finally, Arrowstreet Capital Limited Partnership purchased a new stake in Lumentum during the 2nd quarter valued at about $1,712,000. Hedge funds and other 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.