Zacks Research Downgrades Lumentum (NASDAQ:LITE) to Hold

Lumentum (NASDAQ:LITE) was downgraded by equities researchers at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Monday,Zacks.com reports.

Other equities research analysts have also issued research reports about the stock. Citic Securities boosted their price target on shares of Lumentum from $620.00 to $1,186.00 in a report on Monday, May 11th. Needham & Company LLC reiterated a “buy” rating and set a $1,040.00 price objective on shares of Lumentum in a research report on Tuesday, June 9th. JPMorgan Chase & Co. boosted their target price on shares of Lumentum from $950.00 to $1,130.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. B. Riley Financial restated a “buy” rating on shares of Lumentum in a report on Friday, May 1st. Finally, Raymond James Financial reaffirmed an “outperform” rating and issued a $1,014.00 target price on shares of Lumentum in a research report on Wednesday, May 6th. Fourteen investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $1,021.95.

Lumentum Trading Down 4.4%

Shares of NASDAQ LITE opened at $698.91 on Monday. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01. Lumentum has a 12 month low of $88.93 and a 12 month high of $1,085.68. The company has a market cap of $54.38 billion, a price-to-earnings ratio of 129.43 and a beta of 1.48. The business has a fifty day simple moving average of $886.59 and a 200-day simple moving average of $691.84.

Lumentum (NASDAQ:LITE) last posted its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.27 by $0.10. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The firm had revenue of $808.40 million for the quarter, compared to the consensus estimate of $810.21 million. During the same quarter in the previous year, the company earned $0.57 EPS. The business’s revenue for the quarter was up 90.1% compared to the same quarter last year. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. Sell-side analysts predict that Lumentum will post 6.4 EPS for the current year.

Insider Activity

In other Lumentum news, Director Isaac Hosojiro Harris sold 4,000 shares of the company’s stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $860.00, for a total value of $3,440,000.00. Following the transaction, the director owned 8,400 shares in the company, valued at approximately $7,224,000. This represents a 32.26% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Brian Lillie sold 11,951 shares of the stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $981.64, for a total transaction of $11,731,579.64. Following the completion of the sale, the director owned 13,959 shares of the company’s stock, valued at approximately $13,702,712.76. The trade was a 46.13% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 41,260 shares of company stock valued at $38,859,220 in the last three months. 0.43% of the stock is currently owned by insiders.

Institutional Trading of Lumentum

Hedge funds and other institutional investors have recently modified their holdings of the company. Hilton Head Capital Partners LLC purchased a new position in Lumentum in the first quarter valued at about $25,000. Sachetta LLC raised its stake 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 purchasing an additional 19 shares in the last quarter. V Square Quantitative Management LLC acquired a new stake in shares of Lumentum during the 4th quarter valued at about $28,000. Truvestments Capital LLC lifted 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 valued at $28,000 after buying an additional 57 shares during the last quarter. Finally, Triumph Capital Management bought a new stake in shares of Lumentum in the 4th quarter valued at approximately $30,000. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

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.