Lumentum (NASDAQ:LITE) Cut to Hold at Zacks Research

Lumentum (NASDAQ:LITE) was downgraded by stock analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Monday,Zacks.com reports.

A number of other research firms also recently issued reports on LITE. Citigroup increased their price target on shares of Lumentum to $560.00 and gave the stock a “buy” rating in a research note on Thursday, February 5th. UBS Group increased their price target on shares of Lumentum from $215.00 to $455.00 and gave the stock a “neutral” rating in a research note on Wednesday, February 4th. B. Riley Financial raised shares of Lumentum from a “neutral” rating to a “buy” rating and increased their price target for the stock from $147.00 to $526.00 in a research note on Wednesday, February 4th. Morgan Stanley increased their price target on shares of Lumentum to $595.00 and gave the stock an “equal weight” rating in a research note on Wednesday, March 18th. Finally, JPMorgan Chase & Co. raised their target price on shares of Lumentum to $950.00 and gave the company an “overweight” rating in a research note on Thursday, April 9th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, Lumentum presently has an average rating of “Moderate Buy” and an average target price of $629.44.

Lumentum Stock Performance

Lumentum stock opened at $852.79 on Monday. The company has a current ratio of 0.61, a quick ratio of 0.45 and a debt-to-equity ratio of 0.06. The firm has a 50-day moving average of $688.49 and a 200-day moving average of $427.13. The firm has a market cap of $60.89 billion, a P/E ratio of 261.59 and a beta of 1.38. Lumentum has a 1-year low of $49.13 and a 1-year high of $960.00.

Lumentum (NASDAQ:LITE) last posted its earnings results on Tuesday, February 3rd. The technology company reported $1.67 earnings per share for the quarter, topping analysts’ consensus estimates of $1.41 by $0.26. The company had revenue of $665.50 million during 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%. Lumentum’s revenue for the quarter was up 65.5% on a year-over-year basis. During the same period in the prior year, the business posted $0.42 earnings per share. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. Sell-side analysts expect that Lumentum will post 0.03 EPS for the current year.

Insider Activity

In related news, insider Vincent Retort sold 45,026 shares of the business’s stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $591.32, for a total value of $26,624,774.32. Following the completion of the transaction, the insider directly owned 102,455 shares in the company, valued at $60,583,690.60. The trade was a 30.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Yuen Wupen sold 3,157 shares of the business’s stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $538.00, for a total transaction of $1,698,466.00. Following the completion of the transaction, the insider owned 88,439 shares of the company’s stock, valued at approximately $47,580,182. The trade was a 3.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 65,775 shares of company stock valued at $38,851,343 in the last quarter. Insiders own 0.43% of the company’s stock.

Institutional Investors Weigh In On Lumentum

Large investors have recently added to or reduced their stakes in the stock. EverSource Wealth Advisors LLC grew its position in Lumentum by 363.9% in the 3rd quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company’s stock worth $27,000 after purchasing an additional 131 shares during the period. V Square Quantitative Management LLC purchased a new position in shares of Lumentum during the 4th quarter worth $28,000. Truvestments Capital LLC boosted its stake in shares of Lumentum by 300.0% during the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock worth $28,000 after acquiring an additional 57 shares during the last quarter. Triumph Capital Management purchased a new position in shares of Lumentum during the 4th quarter worth $30,000. Finally, Danske Bank A S purchased a new position in shares of Lumentum during the 3rd quarter worth $33,000. Institutional investors own 94.05% of the company’s stock.

More Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Strong fundamentals and upbeat outlook: recent quarterly results beat estimates and the company reiterated robust guidance tied to AI-driven optical demand, supporting longer-term growth expectations. Why Lumentum (LITE) Just Saw One of the Most Aggressive Target Revisions in Tech
• Positive Sentiment: Analyst support: at least one firm recently raised LITE’s price target (to $875), signaling continued analyst conviction that revenue and margin momentum persist. Lumentum (NASDAQ:LITE) Price Target Raised to $875.00
• Positive Sentiment: Macro/sector tailwinds: multiple market write-ups highlight LITE as a beneficiary of the AI infrastructure boom and hyperscaler optical/network spending, and it’s listed among stocks that helped tech-driven rebounds. Buy 3 AI Infra Giants Flourishing Past Month With More Room to Run
• Neutral Sentiment: Wild share-price appreciation: multiple articles note Lumentum’s parabolic gains (1,500%–1,600%+ YTD/1yr), prompting debate about sustainability—coverage that both attracts buyers and highlights risk. Up 1,600% over the past year, does Lumentum stock have more room to run? Up 1,539% over the past year, what is next for red-hot Lumentum stock?
• Neutral Sentiment: Relative positioning: analysts comparing fiber-laser/optics peers still favor LITE on growth and estimate revisions versus some competitors, which supports investor rotation within the group. nLIGHT vs. Lumentum: Which Fiber Laser Stock is a Buy Right Now?
• Negative Sentiment: Technical/valuation risks: commentators flag LITE as overbought and vulnerable to a pullback after the steep rally; elevated valuation metrics increase the odds of short-term profit-taking. Soaring Lumentum stock gets overbought as Wyckoff points to a dive
• Negative Sentiment: Market dynamics/profit-taking: after the massive rally, intraday weakness is consistent with rotation and traders locking gains despite the positive fundamentals; this is exacerbated by high P/E and tighter near-term liquidity metrics. 5 Stocks in the S&P 500 ETF That Helped Erase Iran War Losses

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.