Lumentum (NASDAQ:LITE) Shares Down 8.4% – Here’s Why

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price dropped 8.4% on Tuesday . The stock traded as low as $602.28 and last traded at $651.93. 5,576,137 shares changed hands during trading, a decline of 3% from the average daily volume of 5,751,576 shares. The stock had previously closed at $711.96.

Wall Street Analysts Forecast Growth

LITE has been the topic of several recent research reports. UBS Group upped their price objective on Lumentum from $455.00 to $960.00 and gave the company a “neutral” rating in a research report on Wednesday, May 6th. Morgan Stanley boosted their target price on shares of Lumentum from $710.00 to $900.00 and gave the company an “equal weight” rating in a research note on Wednesday, May 6th. Rosenblatt Securities raised their price target on shares of Lumentum from $900.00 to $1,300.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. Weiss Ratings reissued a “hold (c)” rating on shares of Lumentum in a research report on Friday, July 17th. Finally, JPMorgan Chase & Co. upped their price objective on shares of Lumentum from $950.00 to $1,130.00 and gave the company an “overweight” rating in a research note 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’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $1,012.67.

Lumentum Stock Performance

The stock’s 50 day moving average price is $831.15 and its 200 day moving average price is $734.30. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01. The company has a market cap of $53.93 billion, a price-to-earnings ratio of 128.38 and a beta of 1.48.

Lumentum (NASDAQ:LITE) last released 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. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The business had revenue of $808.40 million for the quarter, compared to analysts’ expectations of $810.21 million. During the same period last year, the company earned $0.57 earnings per share. The company’s quarterly revenue was up 90.1% on a year-over-year basis. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, analysts expect that Lumentum Holdings Inc. will post 6.42 EPS for the current fiscal year.

Insider Activity at Lumentum

In other Lumentum news, Director Ian Small sold 4,954 shares of Lumentum stock in a transaction 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 transaction, the director owned 21,008 shares in the company, valued at $18,236,414.56. This trade represents a 19.08% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Vincent Retort sold 3,183 shares of the business’s stock in a transaction on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $3,036,422.85. Following the sale, the insider directly owned 89,563 shares of the company’s stock, valued at $85,438,623.85. This represents a 3.43% 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. Insiders have sold a total of 41,260 shares of company stock valued at $38,859,220 over the last 90 days. 0.43% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Lumentum

A number of institutional investors have recently added to or reduced their stakes in LITE. Hilton Head Capital Partners LLC purchased a new position in shares of Lumentum in the 1st quarter worth about $25,000. Sachetta LLC lifted its stake in shares of Lumentum by 118.8% in the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock valued at $25,000 after purchasing an additional 19 shares in the last quarter. V Square Quantitative Management LLC purchased a new stake in shares of Lumentum during the 4th quarter worth about $28,000. Truvestments Capital LLC grew its holdings 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 purchasing an additional 57 shares during the period. Finally, Triumph Capital Management acquired a new stake in Lumentum during the 4th quarter worth approximately $30,000. Hedge funds and other 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.