Lumentum (NASDAQ:LITE) Shares Gap Up – Time to Buy?

Lumentum Holdings Inc. (NASDAQ:LITE) gapped up prior to trading on Thursday . The stock had previously closed at $707.10, but opened at $755.16. Lumentum shares last traded at $796.9180, with a volume of 1,467,612 shares trading hands.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on LITE shares. TD Cowen lifted their price target on shares of Lumentum from $875.00 to $995.00 and gave the stock a “hold” rating in a research report on Wednesday, May 6th. Loop Capital increased their price objective on shares of Lumentum from $900.00 to $1,400.00 and gave the company a “buy” rating in a report on Tuesday, May 5th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $1,200.00 price objective on shares of Lumentum in a research note on Wednesday, May 6th. Craig Hallum upped their target price on shares of Lumentum from $900.00 to $1,150.00 in a research report on Wednesday, May 6th. Finally, Needham & Company LLC reiterated a “buy” rating and set a $1,040.00 target price on shares of Lumentum in a research report on Tuesday, June 9th. Fourteen equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, Lumentum presently has an average rating of “Moderate Buy” and an average price target of $1,021.95.

Lumentum Stock Up 2.1%

The company has a market capitalization of $62.40 billion, a P/E ratio of 148.52 and a beta of 1.48. 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 firm has a fifty day simple moving average of $882.31 and a 200-day simple moving average of $698.09.

Lumentum (NASDAQ:LITE) last released its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, beating 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 business had revenue of $808.40 million for the quarter, compared to analysts’ expectations of $810.21 million. During the same quarter in the previous year, the business posted $0.57 EPS. Lumentum’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. On average, equities research analysts expect that Lumentum Holdings Inc. will post 6.4 EPS for the current fiscal year.

Insider Transactions at Lumentum

In other news, Director Ian Small sold 4,954 shares of the company’s stock in a transaction that occurred on Thursday, May 21st. The shares were 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 in the company, valued at $18,236,414.56. This represents a 19.08% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Brian Lillie sold 11,951 shares of the stock in a transaction 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 sale, the director directly owned 13,959 shares of the company’s stock, valued at $13,702,712.76. This represents 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. In the last 90 days, insiders have sold 41,260 shares of company stock valued at $38,859,220. 0.43% of the stock is currently owned by insiders.

Institutional Trading of Lumentum

Several hedge funds and other institutional investors have recently modified their holdings of the company. Hilton Head Capital Partners LLC acquired a new position in shares of Lumentum during the first quarter worth about $25,000. Sachetta LLC grew its holdings in shares of Lumentum by 118.8% during the first quarter. Sachetta LLC now owns 35 shares of the technology company’s stock worth $25,000 after buying an additional 19 shares in the last quarter. V Square Quantitative Management LLC acquired a new stake in Lumentum in the 4th quarter valued at approximately $28,000. Truvestments Capital LLC raised its position in Lumentum by 300.0% in 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 Lumentum in the 4th quarter valued at approximately $30,000. 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.