Lumentum (NASDAQ:LITE) Stock Price Target Cut by TD Cowen

Lumentum (NASDAQ:LITE) had its price target cut by equities research analysts at TD Cowen from $820.00 to $685.00 in a report released on Tuesday, Benzinga reports. The brokerage presently has a “hold” rating on the technology company’s stock. TD Cowen‘s price objective would indicate a potential upside of 0.51% from the stock’s current price.

A number of other brokerages have also weighed in on LITE. Zacks Research lowered Lumentum from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 12th. Citigroup lifted their price target on shares of Lumentum from $1,200.00 to $1,400.00 and gave the stock a “buy” rating in a report on Monday, September 28th. UBS Group set a $820.00 price target on Lumentum in a research report on Wednesday, August 12th. Evercore initiated coverage on shares of Lumentum in a research report on Monday, August 31st. They set an “outperform” rating and a $1,100.00 target price for the company. Finally, Bank of America dropped their target price on Lumentum from $1,100.00 to $1,000.00 and set a “neutral” rating for the company in a research report on Wednesday, August 12th. Two analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $1,046.54.

Lumentum Stock Down 0.4%

NASDAQ LITE traded down $2.88 on Tuesday, reaching $681.52. The company had a trading volume of 2,695,855 shares, compared to its average volume of 5,528,871. The company’s fifty day moving average is $919.26 and its 200-day moving average is $796.61. Lumentum has a 1-year low of $184.20 and a 1-year high of $1,143.00. The firm has a market capitalization of $61.73 billion, a price-to-earnings ratio of -8.31 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.

Lumentum (NASDAQ:LITE) last posted its quarterly earnings data on Monday, November 2nd. The technology company reported $4.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.22 by $0.35. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The company had revenue of $1.26 billion for the quarter, compared to the consensus estimate of $1.26 billion. During the same period last year, the company earned $1.10 earnings per share. The firm’s revenue was up 136.5% compared to the same quarter last year. On average, research analysts forecast that Lumentum will post 19.79 earnings per share for the current fiscal year.

Insider Activity

In other Lumentum news, CEO Michael E. Hurlston sold 548 shares of the company’s 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 completion of 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 transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Vincent Retort sold 38,663 shares of the stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $852.59, for a total transaction of $32,963,687.17. Following the completion of the sale, the insider directly owned 78,440 shares of the company’s stock, valued at approximately $66,877,159.60. This trade represents a 33.02% decrease in their ownership of the stock. 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. Over the last quarter, insiders sold 94,496 shares of company stock worth $85,978,498. 0.28% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Lumentum

Several large investors have recently made changes to their positions in LITE. Jupiter Topco LLC bought a new position in Lumentum in the 2nd quarter worth approximately $1,621,396,000. Amundi raised its position in shares of Lumentum by 188.7% during the second quarter. Amundi now owns 658,427 shares of the technology company’s stock valued at $564,970,000 after buying an additional 430,355 shares during the last quarter. WT Asset Management Ltd purchased a new position in shares of Lumentum in the second quarter worth $494,688,000. Janus Henderson Group PLC lifted its holdings in shares of Lumentum by 163.2% in the first quarter. Janus Henderson Group PLC now owns 567,182 shares of the technology company’s stock worth $398,590,000 after buying an additional 351,676 shares in the last quarter. Finally, Legal & General Group Plc bought a new position in shares of Lumentum during the second quarter worth $376,539,000. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum reported fiscal first-quarter adjusted earnings of $4.57 per share, exceeding the $4.22 consensus estimate, while revenue of $1.26 billion was in line with expectations and rose 136.5% year over year. Lumentum Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: The company guided to fiscal second-quarter earnings of $5.90–$6.20 per share and revenue of approximately $1.6 billion, above analyst expectations of $4.98 per share and $1.5 billion, signaling continued strength in AI-related optical demand.
• Positive Sentiment: Rosenblatt Securities maintained a “buy” rating and set a $900 price target, suggesting substantial potential upside from recent trading levels.
• Neutral Sentiment: Marvell agreed to acquire Lumentum in an all-stock transaction offering 4.5 Marvell shares for each Lumentum share. The combination is intended to create a major AI-connectivity platform by joining Marvell’s custom silicon with Lumentum’s optical components. Marvell and Lumentum to Combine
• Negative Sentiment: Investors have reacted negatively to the transaction because it is entirely stock-funded, raising concerns about dilution, the deal’s large valuation, integration risk and limited near-term upside. Falling Marvell shares also reduce the effective value of Lumentum’s consideration. MRVL and LITE Downgraded
• Negative Sentiment: B. Riley Financial downgraded Lumentum from “buy” to “neutral,” with a $770 price target. Investor-rights law firms are also reviewing whether the proposed consideration fairly values Lumentum shareholders, adding uncertainty around deal approval and terms. LITE Shareholder Investigation

About Lumentum

Lumentum Holdings Inc is a technology company that designs and manufactures optical and photonic products for communications networks, industrial applications, and consumer electronics. Its portfolio includes optical components, modules, and subsystems used in fiber-optic networks, data centers, cloud computing infrastructure, telecommunications equipment, and high-speed connectivity systems.

The company also develops laser products for applications such as industrial processing, sensing, three-dimensional imaging, and other specialized commercial and consumer uses.