Lumentum (NASDAQ:LITE) Shares Down 8.8% After Insider Selling

Lumentum Holdings Inc. (NASDAQ:LITE) shares fell 8.8% during trading on Monday after an insider sold shares in the company. The company traded as low as $857.00 and last traded at $884.98. 7,155,423 shares traded hands during trading, an increase of 18% from the average session volume of 6,045,229 shares. The stock had previously closed at $970.70.

Specifically, Director Pamela Fletcher sold 1,578 shares of the stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $940.82, for a total value of $1,484,613.96. Following the sale, the director directly owned 7,406 shares in the company, valued at $6,967,712.92. This represents a 17.56% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Pamela Fletcher sold 1,577 shares of the stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $1,003.38, for a total transaction of $1,582,330.26. Following the completion of the sale, the director owned 8,984 shares in the company, valued at $9,014,365.92. This represents a 14.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In other Lumentum news, SVP Jae Kim sold 1,933 shares of the stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $950.99, for a total value of $1,838,263.67. Following the sale, the senior vice president directly owned 35,114 shares in the company, valued at $33,393,062.86. This represents a 5.22% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

Several research firms have issued reports on LITE. Craig Hallum increased their target price on shares of Lumentum from $900.00 to $1,150.00 in a research note on Wednesday, May 6th. Weiss Ratings restated a “hold (c)” rating on shares of Lumentum in a research report on Tuesday, April 21st. Rosenblatt Securities raised their price objective on shares of Lumentum from $900.00 to $1,300.00 and gave the company a “buy” rating in a research report on Wednesday, May 6th. Citigroup raised their price objective on shares of Lumentum from $800.00 to $1,100.00 and gave the company a “buy” rating in a research report on Tuesday, April 21st. Finally, Mizuho set a $1,100.00 price objective on shares of Lumentum in a research report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $1,012.43.

Lumentum Stock Performance

The company’s 50-day moving average price is $809.96 and its two-hundred day moving average price is $537.63. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14. The stock has a market cap of $68.85 billion, a PE ratio of 163.89 and a beta of 1.53.

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

Hedge Funds Weigh In On Lumentum

Several institutional investors and hedge funds have recently made changes to their positions in the business. Regal Partners Ltd bought a new position in shares of Lumentum during the 1st quarter valued at $1,415,000. Empowered Funds LLC grew its holdings in shares of Lumentum by 21.5% during the 1st quarter. Empowered Funds LLC now owns 5,075 shares of the technology company’s stock valued at $3,567,000 after purchasing an additional 899 shares during the last quarter. FACT Capital LP bought a new position in shares of Lumentum during the 1st quarter valued at $1,316,000. JAT Capital Mgmt LP bought a new position in shares of Lumentum during the 1st quarter valued at $2,108,000. Finally, Estuary Capital Management LP bought a new position in shares of Lumentum during the 1st quarter valued at $37,070,000. Institutional investors 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.