Lumentum (NASDAQ:LITE) Stock Price Down 9.9% – Should You Sell?

Lumentum Holdings Inc. (NASDAQ:LITE) fell 9.9% during mid-day trading on Monday . The company traded as low as $833.70 and last traded at $835.03. 4,887,950 shares changed hands during mid-day trading, a decline of 12% from the average daily volume of 5,569,411 shares. The stock had previously closed at $927.03.

Wall Street Analyst Weigh In

Several research firms recently issued reports on LITE. Citigroup reissued a “buy” rating on shares of Lumentum in a research report on Wednesday, August 12th. Deutsche Bank Aktiengesellschaft assumed coverage on Lumentum in a research note on Monday, August 31st. They issued a “buy” rating and a $1,200.00 price objective for the company. Weiss Ratings downgraded Lumentum from a “hold (c-)” rating to a “sell (d-)” rating in a report on Wednesday, August 19th. Wolfe Research reiterated an “outperform” rating on shares of Lumentum in a report on Friday, August 21st. Finally, Evercore assumed coverage on shares of Lumentum in a research report on Monday, August 31st. They set an “outperform” rating and a $1,100.00 price target for the company. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $1,053.83.

Lumentum Stock Performance

The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01. The firm has a market cap of $75.25 billion, a price-to-earnings ratio of -10.21 and a beta of 1.53. The business’s 50-day simple moving average is $834.38 and its two-hundred day simple moving average is $830.21.

Lumentum (NASDAQ:LITE) last released its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, topping analysts’ consensus estimates of $2.97 by $0.26. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%.The company had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $987.70 million. During the same quarter in the prior year, the firm posted $0.88 EPS. Lumentum’s quarterly revenue was up 109.3% compared to the same quarter last year. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, sell-side analysts expect that Lumentum Holdings Inc. will post 19.78 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Michael Hurlston sold 548 shares of the stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $958.66, for a total transaction of $525,345.68. Following the transaction, the chief executive officer owned 186,951 shares in the company, valued at $179,222,445.66. This trade represents a 0.29% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, SVP Jae Kim sold 12,000 shares of Lumentum stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $852.58, for a total transaction of $10,230,960.00. Following the completion of the sale, the senior vice president directly owned 37,804 shares in the company, valued at $32,230,934.32. This represents a 24.09% 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. In the last 90 days, insiders sold 66,647 shares of company stock valued at $57,172,641. Corporate insiders own 0.43% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Hilton Head Capital Partners LLC acquired a new position in Lumentum in the 1st quarter valued at about $25,000. Sachetta LLC increased its stake in Lumentum by 118.8% during the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock worth $25,000 after buying an additional 19 shares during the period. Meeder Asset Management Inc. acquired a new stake in Lumentum during the 2nd quarter worth approximately $40,000. Keating Financial Advisory Services Inc. purchased a new position in Lumentum in the 2nd quarter valued at approximately $41,000. Finally, Fiduciary Financial Advisors purchased a new stake in shares of Lumentum during the second quarter worth $42,000. 94.05% of the stock is owned by hedge funds and other institutional investors.

Lumentum Company Profile

Lumentum Holdings Inc (NASDAQ: LITE) designs and manufactures optical and photonic products used to transmit, process and control light. Its portfolio includes optical components, modules, subsystems, lasers and photonic integrated circuits that support communications networks, data centers, cloud infrastructure and industrial applications.

The company also supplies technologies for consumer electronics and 3D sensing, including laser-based products used in applications such as depth sensing and facial recognition.