Lumentum (NASDAQ:LITE) Stock Price Up 1.2% – Time to Buy?

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price traded up 1.2% during trading on Friday . The stock traded as high as $934.92 and last traded at $903.1160. 6,685,634 shares were traded during mid-day trading, an increase of 12% from the average session volume of 5,975,488 shares. The stock had previously closed at $892.58.

Key Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum reported fiscal Q3 earnings that beat estimates, with revenue up 90% year over year on strong cloud and AI demand; the company also said 1.6T transceiver shipments are set to ramp in fiscal Q4. Article Title
• Positive Sentiment: Several analysts turned constructive on Lumentum, including Craig Hallum raising its price target to $1,150, Barclays lifting its target to $1,000, Loop Capital boosting its target to $1,400, and Rothschild Redburn initiating coverage with a Buy rating and a $1,270 target.
• Positive Sentiment: Other note writers, including JPMorgan and BNP Paribas Exane, also issued upbeat outlooks, reinforcing the view that demand is exceeding supply and that the company remains well positioned in AI and cloud optics.
• Neutral Sentiment: One market report said the stock was among several technology names with conflicted analyst views, suggesting investors are still weighing valuation against growth expectations. Article Title
• Negative Sentiment: Despite the strong fundamentals, Lumentum shares slipped intraday as the AI optics trade cooled, with peers like Coherent and Applied Optoelectronics also falling sharply, pointing to sector profit-taking rather than company-specific weakness. Article Title

Analyst Ratings Changes

Several equities analysts have recently issued reports on LITE shares. UBS Group boosted their price objective on Lumentum from $455.00 to $960.00 and gave the stock a “neutral” rating in a research report on Wednesday. Raymond James Financial reaffirmed an “outperform” rating and set a $1,014.00 target price on shares of Lumentum in a research note on Wednesday. JPMorgan Chase & Co. boosted their price target on Lumentum from $950.00 to $1,130.00 and gave the stock an “overweight” rating in a research report on Wednesday. Stifel Nicolaus increased their price target on Lumentum from $800.00 to $1,100.00 and gave the stock a “buy” rating in a research note on Tuesday. Finally, Morgan Stanley raised their price target on Lumentum from $710.00 to $900.00 and gave the company an “equal weight” rating in a report on Wednesday. Thirteen research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $1,003.75.

Lumentum Stock Up 1.2%

The firm has a market cap of $64.48 billion, a price-to-earnings ratio of 167.24 and a beta of 1.53. The stock’s 50 day moving average is $776.13 and its 200 day moving average is $502.93. The company has a quick ratio of 0.45, a current ratio of 1.14 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE) last released its earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, topping analysts’ consensus estimates of $2.27 by $0.10. The firm had revenue of $808.40 million during the quarter, compared to the consensus estimate of $810.21 million. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The firm’s revenue for the quarter was up 90.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. Analysts forecast that Lumentum Holdings Inc. will post 5.87 EPS for the current year.

Insider Transactions at Lumentum

In other news, Director Penny Herscher sold 4,000 shares of the company’s stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $597.29, for a total value of $2,389,160.00. Following the completion of the sale, the director owned 2,057 shares in the company, valued at $1,228,625.53. This represents a 66.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CFO Wajid Ali sold 5,302 shares of Lumentum stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $691.13, for a total value of $3,664,371.26. Following the transaction, the chief financial officer directly owned 66,287 shares in the company, valued at approximately $45,812,934.31. The trade was a 7.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 60,926 shares of company stock worth $36,254,801 over the last 90 days. 0.43% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Lumentum

Several hedge funds have recently made changes to their positions in the business. Arrowstreet Capital Limited Partnership boosted its holdings in Lumentum by 8,579.2% during the third quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company’s stock worth $254,350,000 after buying an additional 1,545,199 shares in the last quarter. Norges Bank bought a new position in shares of Lumentum in the fourth quarter valued at $474,495,000. Value Aligned Research Advisors LLC bought a new position in shares of Lumentum in the fourth quarter valued at $432,062,000. Situational Awareness LP lifted its position in shares of Lumentum by 210.9% during the 4th quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock valued at $478,577,000 after acquiring an additional 880,800 shares during the last quarter. Finally, Assenagon Asset Management S.A. lifted its position in shares of Lumentum by 707.0% during the 4th quarter. Assenagon Asset Management S.A. now owns 994,478 shares of the technology company’s stock valued at $366,555,000 after acquiring an additional 871,249 shares during the last quarter. 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.