Lumentum (NASDAQ:LITE) Stock Price Down 4.4% on Analyst Downgrade

Lumentum Holdings Inc. (NASDAQ:LITE) shares were down 4.4% during mid-day trading on Tuesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $680.43 and last traded at $698.91. Approximately 3,655,151 shares changed hands during trading, a decline of 38% from the average daily volume of 5,939,536 shares. The stock had previously closed at $731.25.

LITE has been the subject of several other research reports. BNP Paribas Exane upped their price objective on shares of Lumentum from $1,040.00 to $1,300.00 in a research report on Wednesday, May 6th. Stifel Nicolaus upped their price target on shares of Lumentum from $800.00 to $1,100.00 and gave the stock a “buy” rating in a report on Tuesday, May 5th. Needham & Company LLC reiterated a “buy” rating and set a $1,040.00 price target on shares of Lumentum in a research report on Tuesday, June 9th. Weiss Ratings reissued a “hold (c)” rating on shares of Lumentum in a research note on Tuesday, April 21st. Finally, Rosenblatt Securities boosted 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. Fourteen research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $1,021.95.

Insider Buying and Selling

In related news, CFO Wajid Ali sold 2,487 shares of Lumentum stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $2,372,473.65. Following the sale, the chief financial officer directly owned 60,951 shares of the company’s stock, valued at approximately $58,144,206.45. The trade was a 3.92% decrease in their position. The sale 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Isaac Hosojiro Harris sold 1,416 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $1,000.08, for a total transaction of $1,416,113.28. Following the completion of the transaction, the director directly owned 6,984 shares of the company’s stock, valued at approximately $6,984,558.72. The trade was a 16.86% decrease in their position. 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. Insiders sold a total of 41,260 shares of company stock worth $38,859,220 in the last quarter. Corporate insiders own 0.43% of the company’s stock.

Institutional Investors Weigh In On Lumentum

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Nomura Asset Management Co. Ltd. lifted its holdings in shares of Lumentum by 45.0% during the fourth quarter. Nomura Asset Management Co. Ltd. now owns 369,804 shares of the technology company’s stock worth $136,306,000 after purchasing an additional 114,714 shares during the period. Andar Capital Management HK Ltd acquired a new stake in Lumentum in the fourth quarter valued at $4,325,000. Whittier Trust Co. raised its position in Lumentum by 21,806.5% during the 1st quarter. Whittier Trust Co. now owns 74,044 shares of the technology company’s stock worth $57,183,000 after purchasing an additional 73,706 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new position in Lumentum during the 4th quarter worth $6,755,000. Finally, Maxi Investments CY Ltd bought a new position in Lumentum during the 4th quarter worth $2,212,000. Institutional investors own 94.05% of the company’s stock.

Lumentum Price Performance

The stock has a market capitalization of $61.08 billion, a price-to-earnings ratio of 145.61 and a beta of 1.48. The company has a fifty day simple moving average of $883.55 and a 200 day simple moving average of $694.44. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14.

Lumentum (NASDAQ:LITE) last issued its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, beating the consensus estimate of $2.27 by $0.10. The company had revenue of $808.40 million during the quarter, compared to analysts’ expectations of $810.21 million. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The business’s quarterly revenue was up 90.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. Equities research analysts forecast that Lumentum Holdings Inc. will post 6.4 EPS for the current fiscal year.

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.