Lumentum (NASDAQ:LITE) Shares Down 2.8% – Here’s What Happened

Lumentum Holdings Inc. (NASDAQ:LITE) shares dropped 2.8% during trading on Thursday . The company traded as low as $983.02 and last traded at $1,001.81. Approximately 3,532,721 shares traded hands during trading, a decline of 41% from the average daily volume of 5,988,371 shares. The stock had previously closed at $1,030.37.

Lumentum News Roundup

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum’s inclusion in the Nasdaq-100 is likely driving index-fund buying and extra momentum interest, which can support the stock. Lumentum Joins the Nasdaq-100 Index®, Achieving New Milestone in Global Growth
• Positive Sentiment: Analysts have turned more constructive, with Zacks upgrading LITE to Rank #1 (Strong Buy) and Northland Securities raising earnings estimates, reinforcing expectations for stronger near-term and full-year results. What Makes Lumentum (LITE) a New Strong Buy Stock
• Positive Sentiment: Lumentum’s Components business surged 77% on booming AI optics demand, with products reportedly sold out as hyperscale data center growth accelerates. Lumentum’s Components Business Accelerates: More Upside Ahead?
• Neutral Sentiment: Several articles note that Lumentum has had a very large run this year, so some investors are starting to question whether the stock is becoming expensive after the sharp rally.
• Neutral Sentiment: Insider sales disclosed over the last few days may create some attention, but they were made under pre-arranged trading plans, so they are less likely to signal a fundamental change in outlook.

Analyst Upgrades and Downgrades

LITE has been the topic of a number of research analyst reports. JPMorgan Chase & Co. boosted their price objective on shares of Lumentum from $950.00 to $1,130.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. Craig Hallum boosted their price objective on shares of Lumentum from $900.00 to $1,150.00 in a research report on Wednesday, May 6th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Lumentum in a research report on Tuesday, April 21st. Raymond James Financial reaffirmed an “outperform” rating and set a $1,014.00 price objective on shares of Lumentum in a research report on Wednesday, May 6th. Finally, Barclays boosted their price objective on shares of Lumentum from $750.00 to $1,000.00 and gave the company an “equal weight” rating in a research report on Wednesday, May 6th. Thirteen research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $1,012.43.

Lumentum Price Performance

The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01. The company has a market capitalization of $77.94 billion, a P/E ratio of 185.52 and a beta of 1.53. The company’s 50-day simple moving average is $798.01 and its 200 day simple moving average is $526.37.

Lumentum (NASDAQ:LITE) last posted its earnings results on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, topping the consensus estimate of $2.27 by $0.10. The company had revenue of $808.40 million during the quarter, compared to the consensus estimate of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The company’s revenue for the quarter was up 90.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, sell-side analysts expect that Lumentum Holdings Inc. will post 6.49 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Lumentum news, Director Brian Lillie sold 11,951 shares of the business’s stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $981.64, for a total value of $11,731,579.64. Following the completion of the sale, the director directly owned 13,959 shares of the company’s stock, valued at $13,702,712.76. The trade was a 46.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Jae Kim sold 1,933 shares of the business’s stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $950.99, for a total transaction of $1,838,263.67. Following the completion of the sale, the senior vice president directly owned 35,114 shares of the company’s stock, valued at $33,393,062.86. This represents a 5.22% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 29,333 shares of company stock valued at $24,049,017. 0.43% of the stock is owned by company insiders.

Institutional Trading of Lumentum

Several large investors have recently modified their holdings of LITE. Hilton Head Capital Partners LLC bought a new stake in shares of Lumentum during the 1st quarter worth $25,000. Sachetta LLC boosted its holdings in shares of Lumentum by 118.8% during the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock worth $25,000 after buying an additional 19 shares during the period. EverSource Wealth Advisors LLC boosted its holdings in shares of Lumentum by 363.9% during the 3rd quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company’s stock worth $27,000 after buying an additional 131 shares during the period. V Square Quantitative Management LLC bought a new stake in shares of Lumentum during the 4th quarter worth $28,000. Finally, Truvestments Capital LLC boosted its holdings in shares of Lumentum by 300.0% during the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock worth $28,000 after buying an additional 57 shares during the period. 94.05% of the stock is owned by institutional investors.

Lumentum Company Profile

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.