Lumentum (NASDAQ:LITE) Stock Gets Downgrade from Zacks Research

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

Several other equities analysts have also recently issued reports on LITE. Mizuho boosted their target price on shares of Lumentum from $1,100.00 to $1,140.00 and gave the company an “outperform” rating in a research note on Wednesday, August 12th. TD Cowen boosted their price target on shares of Lumentum from $800.00 to $820.00 and gave the stock a “hold” rating in a research report on Wednesday, August 12th. Raymond James Financial restated an “outperform” rating and issued a $1,036.00 target price on shares of Lumentum in a report on Wednesday, August 12th. Wolfe Research restated an “outperform” rating on shares of Lumentum in a report on Friday, August 21st. Finally, Weiss Ratings cut shares of Lumentum from a “hold (c-)” rating to a “sell (d-)” rating in a research report on Wednesday, August 19th. Sixteen investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Lumentum has an average rating of “Moderate Buy” and an average target price of $1,078.75.

Lumentum Price Performance

Shares of NASDAQ LITE opened at $987.99 on Monday. Lumentum has a fifty-two week low of $152.54 and a fifty-two week high of $1,143.00. The company has a market cap of $89.49 billion, a PE ratio of -12.02 and a beta of 1.53. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.40 and a current ratio of 1.68. The business has a 50-day simple moving average of $930.77 and a two-hundred day simple moving average of $873.79.

Lumentum (NASDAQ:LITE) last issued its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) 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 analyst estimates of $987.70 million. During the same quarter last year, the business posted $0.88 EPS. The firm’s quarterly revenue was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, equities analysts expect that Lumentum will post 19.79 EPS for the current fiscal year.

Insider Transactions at Lumentum

In other Lumentum news, CEO Michael Hurlston sold 548 shares of the stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $958.66, for a total value of $525,345.68. Following the transaction, the chief executive officer directly owned 186,951 shares in the company, valued at $179,222,445.66. This represents a 0.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Jae Kim sold 12,000 shares of the 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 transaction, the senior vice president directly owned 37,804 shares in the company, valued at $32,230,934.32. This trade represents a 24.09% decrease in their ownership of the stock. 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 94,496 shares of company stock valued at $85,978,498 over the last three months. 0.28% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Lumentum

Hedge funds have recently made changes to their positions in the business. Red Spruce Capital LLC lifted its position in shares of Lumentum by 0.4% in the 3rd quarter. Red Spruce Capital LLC now owns 3,200 shares of the technology company’s stock valued at $3,108,000 after acquiring an additional 12 shares in the last quarter. CYBER HORNET ETFs LLC grew its stake in Lumentum by 7.2% in the second quarter. CYBER HORNET ETFs LLC now owns 209 shares of the technology company’s stock valued at $179,000 after purchasing an additional 14 shares in the last quarter. Hilltop National Bank increased its holdings in Lumentum by 26.8% in the second quarter. Hilltop National Bank now owns 71 shares of the technology company’s stock worth $61,000 after buying an additional 15 shares during the last quarter. Sachetta LLC raised its holdings in shares of Lumentum by 118.8% during the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock valued at $25,000 after purchasing an additional 19 shares in the last quarter. Finally, Kieckhefer Group LLC raised its holdings in Lumentum by 0.8% during the third quarter. Kieckhefer Group LLC now owns 3,191 shares of the technology company’s stock valued at $3,099,000 after buying an additional 25 shares in the last quarter. Institutional investors and hedge funds own 94.05% of the company’s stock.

Key Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum, Astera Labs and Corning demonstrated a 1060 nm VCSEL-based PCIe-over-optics platform for AI rack-scale connectivity. The technology could support future data-center bandwidth demand and strengthen Lumentum’s position in AI infrastructure. Lumentum, Astera Labs, and Corning Demonstrate PCIe over Optics
• Positive Sentiment: Several reports remain bullish, citing a backlog that is booked through early 2029, demand that exceeds available supply and a potential free-cash-flow inflection. These factors suggest strong visibility for revenue growth, although the shares trade at a demanding valuation. Lumentum’s Massive Backlog and Demand
• Neutral Sentiment: Investors and analysts have mixed views. Some see Lumentum as a leading momentum and AI stock, while others argue that its substantial gains this year warrant taking profits after a recent pullback. Analysts’ Opinions Are Mixed on Lumentum
• Negative Sentiment: Zacks Research downgraded LITE from “strong buy” to “hold,” reducing a source of near-term buying support.
• Negative Sentiment: Optical stocks have fallen broadly as investors question whether AI data-center spending can remain durable after their significant year-to-date gains. Lumentum’s long-term commitments and booked capacity have not insulated it from this sector repricing. Lumentum Down After AI Optics Concerns

About Lumentum

Lumentum Holdings Inc is a photonics and optical technology company that develops and manufactures products used to transmit, process and manage light. Its solutions support communications networks, data centers, cloud computing infrastructure, industrial applications, and other technology markets that rely on high-speed optical connectivity and precision lasers.

The company’s product portfolio includes optical components and modules for telecommunications and networking, lasers and laser systems, optical amplifiers, wavelength-management products, and photonic subsystems.