Lumentum (NASDAQ:LITE) Stock Price Up 4.2% – Still a Buy?

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price shot up 4.2% during trading on Monday . The company traded as high as $852.78 and last traded at $851.40. Approximately 5,550,989 shares were traded during mid-day trading, a decline of 8% from the average session volume of 6,008,645 shares. The stock had previously closed at $816.98.

Wall Street Analysts Forecast Growth

LITE has been the topic of several analyst reports. Stifel Nicolaus lifted their target price on Lumentum from $800.00 to $1,100.00 and gave the company a “buy” rating in a research report on Tuesday, May 5th. Loop Capital upped their price target on Lumentum from $900.00 to $1,400.00 and gave the stock a “buy” rating in a research report on Tuesday, May 5th. UBS Group lifted their price objective on Lumentum from $455.00 to $960.00 and gave the company a “neutral” rating in a research report on Wednesday, May 6th. JPMorgan Chase & Co. boosted their price objective on Lumentum from $950.00 to $1,130.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Finally, Zacks Research raised shares of Lumentum from a “hold” rating to a “strong-buy” rating in a report on Wednesday, May 13th. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $1,021.95.

Lumentum Price Performance

The company has a market cap of $66.24 billion, a P/E ratio of 157.67 and a beta of 1.47. 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 firm’s fifty day moving average is $901.03 and its two-hundred day moving average is $670.68.

Lumentum (NASDAQ:LITE) last issued its quarterly 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. The business had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.21 million. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.Lumentum’s revenue for the quarter was up 90.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, analysts anticipate that Lumentum Holdings Inc. will post 6.4 earnings per share for the current fiscal year.

Insider Transactions at Lumentum

In related news, insider Yuen Wupen sold 3,210 shares of the business’s 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 $3,062,179.50. Following the transaction, the insider directly owned 81,488 shares of the company’s stock, valued at approximately $77,735,477.60. The trade was a 3.79% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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. Also, Director Ian Small sold 4,954 shares of the company’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $868.07, for a total value of $4,300,418.78. Following the completion of the transaction, the director owned 21,008 shares of the company’s stock, valued at $18,236,414.56. The trade was a 19.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 41,260 shares of company stock valued at $38,859,220. 0.43% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Lumentum

Several institutional investors and hedge funds have recently modified their holdings of the stock. Parallel Advisors LLC lifted its holdings in shares of Lumentum by 71.8% in the first quarter. Parallel Advisors LLC now owns 560 shares of the technology company’s stock worth $394,000 after buying an additional 234 shares in the last quarter. Caerus Investment Advisors LLC bought a new position in shares of Lumentum during the first quarter worth $346,000. Concorde Asset Management LLC purchased a new position in Lumentum during the first quarter valued at $212,000. Glenmede Trust Co. NA grew its stake in Lumentum by 39.2% during the first quarter. Glenmede Trust Co. NA now owns 1,515 shares of the technology company’s stock valued at $1,065,000 after acquiring an additional 427 shares in the last quarter. Finally, Essential Partners LLC increased its holdings in Lumentum by 590.3% in the 1st quarter. Essential Partners LLC now owns 214 shares of the technology company’s stock valued at $150,000 after acquiring an additional 183 shares during the last quarter. 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.