Lumentum (NASDAQ:LITE) Trading Down 1.8% Following Insider Selling

Shares of Lumentum Holdings Inc. (NASDAQ:LITE) were down 1.8% during trading on Friday after an insider sold shares in the company. The company traded as low as $934.85 and last traded at $946.90. Approximately 3,051,597 shares traded hands during mid-day trading, a decline of 49% from the average daily volume of 5,993,385 shares. The stock had previously closed at $964.50.

Specifically, Director Ian Small sold 4,954 shares of Lumentum stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $868.07, for a total transaction of $4,300,418.78. Following the completion of the sale, the director directly owned 21,008 shares of the company’s stock, valued at approximately $18,236,414.56. This trade represents a 19.08% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Wajid Ali sold 2,487 shares of Lumentum stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $2,372,473.65. Following the sale, the chief financial officer directly owned 60,951 shares of the company’s stock, valued at approximately $58,144,206.45. The trade was a 3.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In related news, SVP Jae Kim sold 1,422 shares of Lumentum stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $953.95, for a total transaction of $1,356,516.90. Following the completion of the sale, the senior vice president directly owned 32,333 shares of the company’s stock, valued at approximately $30,844,065.35. This trade represents a 4.21% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on LITE shares. Morgan Stanley lifted their price target on Lumentum from $710.00 to $900.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 6th. Citic Securities lifted their price objective on Lumentum from $620.00 to $1,186.00 in a report on Monday, May 11th. Craig Hallum lifted their price objective on Lumentum from $900.00 to $1,150.00 in a report on Wednesday, May 6th. Loop Capital lifted their price objective on Lumentum from $900.00 to $1,400.00 and gave the company a “buy” rating in a report on Tuesday, May 5th. Finally, Raymond James Financial reaffirmed an “outperform” rating and issued a $1,014.00 price objective on shares of Lumentum in a report on Wednesday, May 6th. One 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 data from MarketBeat, Lumentum currently has an average rating of “Moderate Buy” and a consensus price target of $1,012.43.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Articles argue that Nvidia’s results reinforce the scarcity and importance of AI networking hardware, which could support continued demand for Lumentum’s optical components. Lumentum: Market Is Missing What Nvidia’s Q1 Just Confirmed
• Positive Sentiment: Coverage says Lumentum’s AI connectivity portfolio is expanding and hyperscaler demand is driving record revenues and rapid growth in optical connectivity shipments. Lumentum’s AI Connectivity Portfolio Expands: Is Growth Durable?
• Positive Sentiment: Analysts and market commentary describe Lumentum’s earnings as confirming an “AI scarcity advantage,” suggesting the company may be well positioned to benefit from tight supply and strong demand. Lumentum’s Earnings Confirm AI Scarcity Advantage
• Positive Sentiment: Lumentum’s addition to the Nasdaq-100 is increasing visibility and could bring more institutional and ETF-related demand for the shares. Does Lumentum (LITE) Joining the Nasdaq-100 Recast Its AI Infrastructure Investment Narrative?
• Neutral Sentiment: REX Shares launched a 2x leveraged ETF tied to Lumentum, which may boost trading interest but does not change the company’s fundamentals. REX Shares Launches T-REX 2X ASTS (ASUP) & 2X LITE (LITU) ETFs
• Neutral Sentiment: Several insider sale filings were reported, but the trades were relatively small and do not appear to be a major driver of the stock move. Yuen Wupen Sells 3,210 Shares of Lumentum (NASDAQ:LITE) Stock

Lumentum Price Performance

The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14. The company has a market cap of $73.67 billion, a price-to-earnings ratio of 175.35 and a beta of 1.53. The business has a fifty day moving average price of $831.67 and a 200 day moving average price of $557.30.

Lumentum (NASDAQ:LITE) last posted its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 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 company had revenue of $808.40 million during the quarter, compared to analysts’ expectations of $810.21 million. During the same quarter in the previous year, the firm earned $0.57 EPS. Lumentum’s revenue 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, research analysts anticipate that Lumentum Holdings Inc. will post 6.49 earnings per share for the current year.

Hedge Funds Weigh In On Lumentum

A number of institutional investors have recently modified their holdings of LITE. Sachetta LLC increased 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 in the last quarter. Hilton Head Capital Partners LLC acquired a new position in Lumentum in the 1st quarter worth about $25,000. Abel Hall LLC increased its holdings in Lumentum by 5.5% in the 1st quarter. Abel Hall LLC now owns 693 shares of the technology company’s stock worth $487,000 after purchasing an additional 36 shares in the last quarter. Checchi Capital Advisers LLC increased its holdings in Lumentum by 5.1% in the 1st quarter. Checchi Capital Advisers LLC now owns 790 shares of the technology company’s stock worth $555,000 after purchasing an additional 38 shares in the last quarter. Finally, 180 Wealth Advisors LLC increased its holdings in Lumentum by 2.9% in the 1st quarter. 180 Wealth Advisors LLC now owns 1,553 shares of the technology company’s stock worth $1,092,000 after purchasing an additional 44 shares in the last quarter. Institutional investors and hedge funds own 94.05% of the company’s stock.

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.