Lumentum (NASDAQ:LITE) Raised to Strong-Buy at Zacks Research

Lumentum (NASDAQ:LITE) was upgraded by analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

LITE has been the subject of several other research reports. Needham & Company LLC raised their target price on Lumentum from $880.00 to $1,040.00 and gave the stock a “buy” rating in a research note on Tuesday, April 21st. Susquehanna lifted their price objective on Lumentum from $550.00 to $1,100.00 and gave the company a “positive” rating in a research note on Monday, April 20th. UBS Group lifted their price target on Lumentum from $455.00 to $960.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 6th. Jefferies Financial Group reiterated a “buy” rating and issued a $1,200.00 price objective on shares of Lumentum in a report on Wednesday, May 6th. Finally, Loop Capital lifted their price objective on Lumentum from $900.00 to $1,400.00 and gave the stock a “buy” rating in a report on Tuesday, May 5th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat, Lumentum has a consensus rating of “Moderate Buy” and a consensus price target of $1,012.43.

Lumentum Stock Performance

Shares of LITE opened at $1,001.81 on Wednesday. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01. The stock has a 50 day moving average of $804.16 and a 200 day moving average of $532.16. Lumentum has a 12 month low of $71.04 and a 12 month high of $1,085.68. The company has a market capitalization of $77.94 billion, a price-to-earnings ratio of 185.52 and a beta of 1.53.

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

Insider Buying and Selling

In related news, CFO Wajid Ali sold 5,302 shares of the company’s stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $691.13, for a total value of $3,664,371.26. Following the sale, the chief financial officer owned 66,287 shares in the company, valued at $45,812,934.31. This represents a 7.41% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Brian Lillie sold 11,951 shares of the company’s stock in a transaction that occurred on Monday, May 11th. The stock was 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 owned 13,959 shares in the company, valued at $13,702,712.76. The trade was a 46.13% decrease in their position. 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. Insiders have sold a total of 29,333 shares of company stock worth $24,049,017 over the last three months. Corporate insiders own 0.43% of the company’s stock.

Hedge Funds Weigh In On Lumentum

Several hedge funds and other institutional investors have recently added to or reduced their stakes in LITE. Hilton Head Capital Partners LLC bought a new position in Lumentum in the 1st quarter valued at approximately $25,000. Sachetta LLC raised its holdings in Lumentum by 118.8% in the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock worth $25,000 after purchasing an additional 19 shares during the period. EverSource Wealth Advisors LLC raised its holdings in Lumentum by 363.9% in the 3rd quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company’s stock worth $27,000 after purchasing an additional 131 shares during the period. V Square Quantitative Management LLC bought a new position in Lumentum in the 4th quarter worth $28,000. Finally, Truvestments Capital LLC increased its stake in Lumentum by 300.0% in 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 in the last quarter. 94.05% of the stock is owned by institutional investors.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum’s AI optics business is seeing strong demand, with management saying optical capacity is effectively sold out through 2028 and that the company plans to expand manufacturing to meet next-generation data center needs. Lumentum’s AI Optics Demand And NVIDIA Deal Reshape Valuation Debate
• Positive Sentiment: NVIDIA announced a $2 billion investment in Lumentum, reinforcing the company’s role in AI optical infrastructure and adding credibility to the long-term growth story. Lumentum’s AI Optics Demand And NVIDIA Deal Reshape Valuation Debate
• Positive Sentiment: Lumentum was upgraded to a Zacks Rank #1 (Strong Buy), and the stock also appeared on momentum-stock lists, signaling improving analyst sentiment and earnings optimism. What Makes Lumentum (LITE) a New Strong Buy Stock
• Positive Sentiment: Northland Securities raised its earnings estimates for Lumentum, reflecting stronger expectations for fiscal 2026 profitability. Lumentum Holdings Inc. analyst estimate update
• Neutral Sentiment: Several articles highlighted that Lumentum hit a 52-week high and has become a hot momentum and AI-networking trade, which may keep traders interested but also raises valuation sensitivity. Lumentum Holdings Inc. (LITE) Hit a 52 Week High, Can the Run Continue?

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.