Lumentum (NASDAQ:LITE) Trading 2.5% Higher – Still a Buy?

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price shot up 2.5% during trading on Monday . The company traded as high as $983.45 and last traded at $954.49. 4,707,313 shares were traded during mid-day trading, a decline of 15% from the average daily volume of 5,568,830 shares. The stock had previously closed at $930.91.

Analyst Ratings Changes

A number of research firms have recently weighed in on LITE. TD Cowen raised their price objective on Lumentum from $800.00 to $820.00 and gave the stock a “hold” rating in a research report on Wednesday, August 12th. Northland Securities raised their target price on Lumentum from $1,000.00 to $1,200.00 and gave the company an “outperform” rating in a research report on Wednesday, June 3rd. UBS Group set a $820.00 price objective on shares of Lumentum in a research report on Wednesday, August 12th. Weiss Ratings lowered Lumentum from a “hold (c-)” rating to a “sell (d-)” rating in a research note on Wednesday, August 19th. Finally, Mizuho increased their target price on shares of Lumentum from $1,100.00 to $1,140.00 and gave the company an “outperform” rating in a research report on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $1,053.83.

Lumentum Price Performance

The company has a current ratio of 1.68, a quick ratio of 1.40 and a debt-to-equity ratio of 0.01. The stock has a market cap of $84.12 billion, a price-to-earnings ratio of -11.30 and a beta of 1.53. The company’s fifty day moving average is $849.70 and its two-hundred day moving average is $838.01.

Lumentum (NASDAQ:LITE) last posted its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.97 by $0.26. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%.The firm had revenue of $1.01 billion for the quarter, compared to analyst estimates of $987.70 million. During the same quarter in the prior year, the company earned $0.88 EPS. Lumentum’s revenue was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, research analysts predict that Lumentum Holdings Inc. will post 19.78 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Michael Hurlston sold 548 shares of the business’s stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $958.66, for a total transaction of $525,345.68. Following the completion of the transaction, the chief executive officer directly owned 186,951 shares of the company’s stock, valued at $179,222,445.66. The trade was a 0.29% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Yuen Wupen sold 1,500 shares of the business’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $827.82, for a total value of $1,241,730.00. Following the transaction, the insider directly owned 100,434 shares of the company’s stock, valued at approximately $83,141,273.88. This represents a 1.47% 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 67,647 shares of company stock valued at $58,061,056. 0.43% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Lumentum

Institutional investors and hedge funds have recently bought and sold shares of the stock. Hilton Head Capital Partners LLC acquired a new position in shares of Lumentum in the first quarter valued at approximately $25,000. Sachetta LLC lifted its position in Lumentum by 118.8% during the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock worth $25,000 after acquiring an additional 19 shares in the last quarter. Harbour Investments Inc. grew its holdings in Lumentum by 675.0% during the 4th quarter. Harbour Investments Inc. now owns 93 shares of the technology company’s stock valued at $34,000 after purchasing an additional 81 shares in the last quarter. Meeder Asset Management Inc. purchased a new stake in shares of Lumentum during the second quarter worth about $40,000. Finally, Keating Financial Advisory Services Inc. acquired a new position in shares of Lumentum in the 2nd quarter valued at approximately $41,000. 94.05% of the stock is owned by hedge funds and other institutional investors.

Lumentum Company Profile

Lumentum Holdings Inc (NASDAQ: LITE) designs and manufactures optical and photonic products used to transmit, process and control light. Its portfolio includes optical components, modules, subsystems, lasers and photonic integrated circuits that support communications networks, data centers, cloud infrastructure and industrial applications.

The company also supplies technologies for consumer electronics and 3D sensing, including laser-based products used in applications such as depth sensing and facial recognition.