Lumentum (NASDAQ:LITE) Trading 11% Higher – Time to Buy?

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price traded up 11% during trading on Tuesday . The company traded as high as $1,000.15 and last traded at $978.54. 7,358,237 shares traded hands during trading, an increase of 31% from the average daily volume of 5,599,289 shares. The stock had previously closed at $881.26.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. Morgan Stanley lifted their price target on Lumentum from $900.00 to $1,000.00 and gave the company an “equal weight” rating in a report on Wednesday, August 12th. Citigroup reiterated a “buy” rating 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. Raymond James Financial reiterated an “outperform” rating and issued a $1,036.00 price objective on shares of Lumentum in a research note on Wednesday, August 12th. Finally, Citic Securities boosted their price target on shares of Lumentum from $620.00 to $1,186.00 in a report on Monday, May 11th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Lumentum presently has an average rating of “Moderate Buy” and an average price target of $1,053.83.

Lumentum Price Performance

The company has a debt-to-equity ratio of 0.01, a current ratio of 1.68 and a quick ratio of 1.40. The stock has a market capitalization of $87.77 billion, a price-to-earnings ratio of -11.90 and a beta of 1.53. The stock’s 50 day simple moving average is $815.21 and its 200-day simple moving average is $819.50.

Lumentum (NASDAQ:LITE) last released its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, beating analysts’ consensus estimates of $2.97 by $0.26. The business had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. Lumentum’s revenue for the quarter was up 109.3% on a year-over-year basis. During the same quarter last year, the firm earned $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. On average, analysts expect that Lumentum Holdings Inc. will post 19.78 EPS for the current fiscal year.

Insider Buying and Selling

In other Lumentum news, SVP Jae Kim sold 12,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $852.58, for a total transaction of $10,230,960.00. Following the completion of the sale, the senior vice president owned 37,804 shares of the company’s stock, valued at $32,230,934.32. This represents a 24.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 500 shares of Lumentum stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $860.00, for a total transaction of $430,000.00. Following the completion of the transaction, the insider directly owned 116,127 shares in the company, valued at approximately $99,869,220. This represents a 0.43% 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. Insiders have sold a total of 65,147 shares of company stock valued at $55,812,856 in the last quarter. Company insiders own 0.43% of the company’s stock.

Institutional Investors Weigh In On Lumentum

Hedge funds have recently bought and sold shares of the company. CYBER HORNET ETFs LLC increased its stake in shares of Lumentum by 7.2% in the second quarter. CYBER HORNET ETFs LLC now owns 209 shares of the technology company’s stock worth $179,000 after purchasing an additional 14 shares during the period. Hilltop National Bank boosted its stake in Lumentum by 26.8% during the 2nd quarter. Hilltop National Bank now owns 71 shares of the technology company’s stock valued at $61,000 after purchasing an additional 15 shares during the period. Sachetta LLC grew its holdings in Lumentum by 118.8% in 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. Toth Financial Advisory Corp grew its holdings in Lumentum by 127.3% in the 2nd quarter. Toth Financial Advisory Corp now owns 50 shares of the technology company’s stock valued at $43,000 after buying an additional 28 shares during the last quarter. Finally, Versant Capital Management Inc increased its position in Lumentum by 39.5% in the 2nd quarter. Versant Capital Management Inc now owns 106 shares of the technology company’s stock worth $91,000 after buying an additional 30 shares during the period. 94.05% of the stock is currently owned by institutional investors.

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.