Lumentum (NASDAQ:LITE) Trading 4.3% Higher – Still a Buy?

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price traded up 4.3% during mid-day trading on Thursday . The stock traded as high as $890.80 and last traded at $889.59. 4,627,964 shares traded hands during trading, a decline of 23% from the average session volume of 6,024,652 shares. The stock had previously closed at $853.26.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the company. Craig Hallum lifted their target price on Lumentum from $900.00 to $1,150.00 in a research report on Wednesday, May 6th. Rosenblatt Securities lifted their target price on Lumentum from $900.00 to $1,300.00 and gave the company a “buy” rating in a research report on Wednesday, May 6th. Weiss Ratings reissued a “hold (c)” rating on shares of Lumentum in a research report on Tuesday, April 21st. Citigroup boosted their price objective on Lumentum from $800.00 to $1,100.00 and gave the stock a “buy” rating in a research report on Tuesday, April 21st. Finally, Loop Capital boosted their price objective on Lumentum from $900.00 to $1,400.00 and gave the stock a “buy” rating in a research report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $1,021.95.

Lumentum Stock Performance

The company has a 50-day simple moving average of $897.64 and a two-hundred day simple moving average of $629.72. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01. The firm has a market cap of $71.70 billion, a PE ratio of 170.66 and a beta of 1.47.

Lumentum (NASDAQ:LITE) last posted its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, topping the consensus estimate of $2.27 by $0.10. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The business had revenue of $808.40 million for the quarter, compared to analysts’ expectations of $810.21 million. During the same quarter in the previous year, the firm earned $0.57 earnings per share. The business’s revenue was up 90.1% on a year-over-year basis. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, equities research analysts forecast that Lumentum Holdings Inc. will post 6.49 earnings per share for the current year.

Insider Activity

In other news, Director Brian Lillie sold 11,951 shares of the company’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $981.64, for a total transaction of $11,731,579.64. Following the transaction, the director owned 13,959 shares of the company’s stock, valued at $13,702,712.76. This represents a 46.13% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Vincent Retort sold 3,183 shares of the company’s stock in a transaction on Monday, May 18th. The shares were sold at an average price of $953.95, for a total value of $3,036,422.85. Following the transaction, the insider directly owned 89,563 shares in the company, valued at $85,438,623.85. This represents a 3.43% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 41,260 shares of company stock worth $38,859,220. 0.43% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Hilton Head Capital Partners LLC purchased a new position in shares of Lumentum during the 1st quarter valued at $25,000. Sachetta LLC lifted its position 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 buying an additional 19 shares during the last quarter. EverSource Wealth Advisors LLC lifted its position in shares of Lumentum by 363.9% during the 3rd quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company’s stock valued at $27,000 after buying an additional 131 shares during the last quarter. V Square Quantitative Management LLC purchased a new position in shares of Lumentum during the 4th quarter valued at $28,000. Finally, Truvestments Capital LLC lifted its position in shares of Lumentum by 300.0% during the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock valued at $28,000 after buying an additional 57 shares during the last quarter. Hedge funds and other institutional investors own 94.05% of the company’s stock.

About Lumentum

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.