Lumentum (NASDAQ:LITE) Shares Gap Down – Time to Sell?

Shares of Lumentum Holdings Inc. (NASDAQ:LITE) gapped down prior to trading on Thursday . The stock had previously closed at $764.65, but opened at $708.59. Lumentum shares last traded at $766.4560, with a volume of 1,194,923 shares changing hands.

Analysts Set New Price Targets

LITE has been the subject of a number of recent analyst reports. B. Riley Financial raised shares of Lumentum from a “neutral” rating to a “buy” rating and upped their price target for the stock from $147.00 to $526.00 in a report on Wednesday, February 4th. Rosenblatt Securities restated a “buy” rating and set a $900.00 price objective on shares of Lumentum in a research report on Wednesday, March 18th. TD Cowen started coverage on Lumentum in a research note on Thursday, March 12th. They set a “hold” rating and a $675.00 target price for the company. Mizuho raised their target price on Lumentum to $645.00 and gave the company an “outperform” rating in a report on Tuesday, February 17th. Finally, Northland Securities set a $350.00 price target on Lumentum in a research note on Wednesday, December 3rd. Two investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $575.06.

Lumentum Stock Up 5.3%

The firm’s fifty day moving average is $603.71 and its 200-day moving average is $382.13. The company has a market capitalization of $57.50 billion, a P/E ratio of 246.60 and a beta of 1.38. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.45 and a current ratio of 0.61.

Lumentum (NASDAQ:LITE) last issued its earnings results on Tuesday, February 3rd. The technology company reported $1.67 earnings per share for the quarter, beating analysts’ consensus estimates of $1.41 by $0.26. The firm had revenue of $665.50 million for the quarter, compared to analyst estimates of $646.74 million. Lumentum had a net margin of 11.95% and a return on equity of 17.27%. The company’s quarterly revenue was up 65.5% on a year-over-year basis. During the same quarter last year, the business posted $0.42 earnings per share. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. As a group, equities research analysts predict that Lumentum Holdings Inc. will post 0.03 EPS for the current year.

Insider Transactions at Lumentum

In other Lumentum news, Director Penny Herscher sold 4,000 shares of the company’s stock in a transaction dated 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 transaction, the director owned 2,057 shares of the company’s stock, valued at $1,228,625.53. This represents a 66.04% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Wajid Ali sold 5,302 shares of the stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $691.13, for a total value of $3,664,371.26. Following the completion of the transaction, the chief financial officer owned 66,287 shares of the company’s stock, valued at $45,812,934.31. This represents a 7.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 65,775 shares of company stock worth $38,851,343. 0.43% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC grew its holdings in Lumentum by 363.9% during the 3rd quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company’s stock worth $27,000 after acquiring an additional 131 shares during the last quarter. V Square Quantitative Management LLC bought a new position in shares of Lumentum during the fourth quarter valued at $28,000. Truvestments Capital LLC raised its stake in shares of Lumentum by 300.0% during the fourth quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock valued at $28,000 after acquiring an additional 57 shares during the last quarter. Triumph Capital Management acquired a new position in shares of Lumentum during the fourth quarter worth $30,000. Finally, Danske Bank A S acquired a new position in shares of Lumentum during the third quarter worth $33,000. 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.