Lumentum (NASDAQ:LITE) Stock Rating Lowered by B. Riley Financial

Lumentum (NASDAQ:LITE) was downgraded by B. Riley Financial from a “buy” rating to a “neutral” rating in a research note issued on Tuesday, Briefing.com reports. They currently have a $770.00 target price on the technology company’s stock. B. Riley Financial‘s price target indicates a potential upside of 12.51% from the company’s previous close.

Other research analysts also recently issued research reports about the stock. Evercore initiated coverage on shares of Lumentum in a research report on Monday, August 31st. They issued an “outperform” rating and a $1,100.00 target price for the company. Bank of America cut their price target on shares of Lumentum from $1,100.00 to $1,000.00 and set a “neutral” rating on the stock in a research report on Wednesday, August 12th. Stifel Nicolaus set a $806.00 price objective on shares of Lumentum in a research note on Monday. TD Cowen increased their price objective on shares of Lumentum from $800.00 to $820.00 and gave the stock a “hold” rating in a research note on Wednesday, August 12th. Finally, Zacks Research cut Lumentum from a “strong-buy” rating to a “hold” rating in a report on Monday, October 12th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Lumentum presently has a consensus rating of “Moderate Buy” and an average price target of $1,085.08.

Lumentum Price Performance

NASDAQ LITE opened at $684.40 on Tuesday. The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01. Lumentum has a 12-month low of $184.20 and a 12-month high of $1,143.00. The company has a market capitalization of $61.99 billion, a PE ratio of -8.33 and a beta of 1.53. The firm’s 50 day moving average is $919.26 and its 200-day moving average is $796.61.

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

Insider Activity at Lumentum

In related news, insider Yuen Wupen sold 307 shares of the firm’s stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $945.00, for a total value of $290,115.00. Following the completion of the transaction, the insider directly owned 108,320 shares of the company’s stock, valued at approximately $102,362,400. This trade represents a 0.28% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Wajid Ali sold 24,542 shares of the firm’s stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $1,048.50, for a total transaction of $25,732,287.00. Following the completion of the transaction, the chief financial officer directly owned 75,074 shares of the company’s stock, valued at $78,715,089. This represents a 24.64% 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. In the last three months, insiders sold 94,496 shares of company stock valued at $85,978,498. 0.28% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of LITE. Red Spruce Capital LLC grew its stake in shares of Lumentum by 0.4% in the third quarter. Red Spruce Capital LLC now owns 3,200 shares of the technology company’s stock worth $3,108,000 after purchasing an additional 12 shares during the last quarter. CYBER HORNET ETFs LLC increased its holdings 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 during the period. Hilltop National Bank raised its position in Lumentum by 26.8% during the 2nd quarter. Hilltop National Bank now owns 71 shares of the technology company’s stock worth $61,000 after purchasing an additional 15 shares during the last quarter. Sachetta LLC raised its position 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 purchasing an additional 19 shares during the last quarter. Finally, TrinityBridge Ltd raised its position in Lumentum by 35.8% during the 3rd quarter. TrinityBridge Ltd now owns 72 shares of the technology company’s stock worth $70,000 after purchasing an additional 19 shares during the last quarter. Institutional investors own 94.05% of the company’s stock.

Key Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum beat fiscal first-quarter expectations, reporting $4.57 in adjusted EPS versus the $4.22 consensus estimate. Revenue was approximately $1.26 billion, up 136.5% year over year and in line with forecasts. Lumentum Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: The proposed combination would unite Marvell’s custom silicon and networking technology with Lumentum’s optical components, creating a larger AI-data-center connectivity platform and potentially giving the combined company greater scale in a rapidly expanding market. Marvell and Lumentum to Combine
• Neutral Sentiment: The transaction would be financed entirely with stock. Lumentum shareholders would receive 4.5 Marvell shares per Lumentum share and own about 33% of the combined company; the deal carries an implied enterprise value of roughly $115 billion, including debt. Its final value will fluctuate with Marvell’s share price. Marvell Buys Lumentum for $115 Billion
• Negative Sentiment: Investors appear concerned that Marvell is paying an aggressive price at a time when the AI infrastructure boom is facing questions about spending durability and returns. Analysts have cited dilution, limited near-term upside and integration risk, while comparisons with past technology bubbles have further pressured the shares. Stocks Downgraded on Merger Concerns
• Negative Sentiment: Shareholder-rights law firms are investigating whether Lumentum is receiving a fair price and whether insiders’ interests or deal restrictions could limit competing offers. These reviews add uncertainty around approval and completion. Lumentum Shareholder Investigation

Lumentum Company Profile

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.