Lumentum (NASDAQ:LITE) Stock Price Up 3.6% – Here’s Why

Shares of Lumentum Holdings Inc. (NASDAQ:LITE) shot up 3.6% during mid-day trading on Friday . The stock traded as high as $934.26 and last traded at $921.56. 4,493,043 shares traded hands during trading, a decline of 25% from the average session volume of 6,011,414 shares. The stock had previously closed at $889.59.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on the company. Loop Capital increased their price target on Lumentum from $900.00 to $1,400.00 and gave the stock a “buy” rating in a report on Tuesday, May 5th. Barclays boosted their price objective on shares of Lumentum from $750.00 to $1,000.00 and gave the company an “equal weight” rating in a report on Wednesday, May 6th. Citic Securities increased their target price on shares of Lumentum from $620.00 to $1,186.00 in a research note on Monday, May 11th. JPMorgan Chase & Co. lifted their price target on shares of Lumentum from $950.00 to $1,130.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Lumentum in a research note on Tuesday, April 21st. 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, Lumentum presently has an average rating of “Moderate Buy” and a consensus target price of $1,021.95.

Lumentum Price Performance

The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97. The firm has a market capitalization of $71.70 billion, a price-to-earnings ratio of 170.66 and a beta of 1.47. The stock has a 50 day moving average price of $894.51 and a two-hundred day moving average price of $627.66.

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

Insider Transactions at Lumentum

In related news, Director Ian Small sold 4,954 shares of Lumentum stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $868.07, for a total value of $4,300,418.78. Following the completion of the transaction, the director owned 21,008 shares in the company, valued at approximately $18,236,414.56. The trade was a 19.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Yuen Wupen sold 3,210 shares of the stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $953.95, for a total transaction of $3,062,179.50. Following the sale, the insider owned 81,488 shares in the company, valued at approximately $77,735,477.60. This trade represents a 3.79% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. In the last ninety days, insiders have sold 41,260 shares of company stock valued at $38,859,220. 0.43% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. grew its stake in Lumentum by 0.6% during the 3rd quarter. Vanguard Group Inc. now owns 7,485,282 shares of the technology company’s stock worth $1,217,930,000 after purchasing an additional 41,975 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its position in Lumentum by 18.7% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company’s stock valued at $683,661,000 after purchasing an additional 291,591 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of Lumentum by 9.6% in the 4th quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company’s stock valued at $521,563,000 after buying an additional 123,265 shares during the period. Situational Awareness LP boosted its stake in shares of Lumentum by 210.9% in the 4th quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock valued at $478,577,000 after buying an additional 880,800 shares during the period. Finally, Norges Bank acquired a new position in shares of Lumentum during the fourth quarter worth about $474,495,000. 94.05% of the stock is currently owned by hedge funds and other 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.