Lumentum Holdings Inc. (NASDAQ:LITE – Get Free Report)’s share price rose 5.7% during trading on Friday. The company traded as high as $559.00 and last traded at $538.59. 5,366,445 shares were traded during mid-day trading, a decline of 4% from the average session volume of 5,589,168 shares. The stock had previously closed at $509.70.
Lumentum News Summary
Here are the key news stories impacting Lumentum this week:
- Positive Sentiment: Some commentary sees Lumentum as potentially undervalued after Marvell agreed to acquire it, arguing the deal highlights demand for optical interconnects—a potential bottleneck in AI data centers. Lumentum’s shares also rose alongside a broader recovery in optical stocks. Article: Lumentum Holdings Could Be 90% Undervalued Following The Marvell Deal Article: Optical stocks rally
- Neutral Sentiment: The proposed all-stock Marvell deal values Lumentum at about $115 billion, with Lumentum shareholders set to receive 4.5 Marvell shares per share. That is not a fixed cash offer: its implied value will move with Marvell’s stock. The transaction is expected to take time to close and remains subject to regulatory approval. Article: Marvell Agreed to Pay $1,132 a Share for Lumentum
- Positive Sentiment: A bullish technical view says Lumentum is oversold after a steep decline, while analysts’ earnings-estimate increases could support a recovery. Article: Lumentum is Poised for a Turnaround
- Negative Sentiment: Recent pressure reflects a broader sell-off in AI and optical shares, alongside analyst downgrades and lower price expectations. The sharp recent declines suggest investors remain cautious despite the proposed acquisition and the latest rebound. Article: Lumentum Shares Down After Analyst Downgrade Article: AI optical stocks slide
Wall Street Analyst Weigh In
LITE has been the subject of several analyst reports. Morgan Stanley increased their price target on shares of Lumentum from $900.00 to $1,000.00 and gave the company an “equal weight” rating in a research report on Wednesday, August 12th. Rosenblatt Securities cut their price objective on shares of Lumentum from $1,300.00 to $900.00 and set a “buy” rating on the stock in a research report on Tuesday, November 3rd. Stifel Nicolaus set a $806.00 price objective on shares of Lumentum in a research note on Monday, November 2nd. Citigroup boosted their price objective on shares of Lumentum from $1,200.00 to $1,400.00 and gave the stock a “buy” rating in a research note on Monday, September 28th. Finally, JPMorgan Chase & Co. increased their target price on shares of Lumentum from $1,165.00 to $1,280.00 and gave the company an “overweight” rating in a research report on Wednesday, August 12th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $1,081.61.
View Our Latest Analysis on LITE
Lumentum Price Performance
The firm has a market cap of $48.85 billion, a PE ratio of -6.84 and a beta of 1.64. The company has a quick ratio of 1.40, a current ratio of 1.61 and a debt-to-equity ratio of 0.01. The stock has a 50 day moving average price of $894.13 and a two-hundred day moving average price of $801.60.
Lumentum (NASDAQ:LITE – Get Free Report) last posted its quarterly earnings data on Monday, November 2nd. The technology company reported $4.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.22 by $0.35. The firm had revenue of $1.26 billion for the quarter, compared to the consensus estimate of $1.26 billion. Lumentum had a negative net margin of 175.82% and a positive return on equity of 28.85%. The company’s revenue for the quarter was up 136.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.10 earnings per share. As a group, equities analysts expect that Lumentum Holdings Inc. will post 19.93 earnings per share for the current year.
Insiders Place Their Bets
In other news, CEO Michael E. Hurlston sold 548 shares of the business’s stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $958.66, for a total transaction of $525,345.68. Following the sale, 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Jae Kim sold 12,000 shares of the company’s stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $852.58, for a total value of $10,230,960.00. Following the completion of the transaction, the senior vice president directly owned 37,804 shares in the company, valued at approximately $32,230,934.32. The trade was a 24.09% 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. In the last quarter, insiders have sold 94,496 shares of company stock valued at $85,978,498. Corporate insiders own 0.28% of the company’s stock.
Institutional Trading of Lumentum
Large investors have recently added to or reduced their stakes in the company. Jupiter Topco LLC acquired a new position in Lumentum during the second quarter valued at $1,621,396,000. WT Asset Management Ltd purchased a new stake in Lumentum in the second quarter valued at $494,688,000. Legal & General Group Plc acquired a new stake in Lumentum during the 2nd quarter worth about $376,539,000. Amundi raised its stake in shares of Lumentum by 188.7% during the 2nd quarter. Amundi now owns 658,427 shares of the technology company’s stock valued at $564,970,000 after buying an additional 430,355 shares during the last quarter. Finally, Janus Henderson Group PLC raised its stake in shares of Lumentum by 163.2% during the 1st quarter. Janus Henderson Group PLC now owns 567,182 shares of the technology company’s stock valued at $398,590,000 after buying an additional 351,676 shares during the last quarter. Hedge funds and other institutional investors own 94.05% of the company’s stock.
Lumentum Company Profile
Lumentum Holdings Inc develops and manufactures optical and photonic products used in communications networks and industrial applications. Its offerings include optical components, modules and lasers that help transmit and process data across telecommunications and data center networks.
The company also supplies lasers and related technologies for industrial uses, including precision manufacturing and semiconductor production. Its products serve customers in markets around the world.
Lumentum became an independent public company in 2015 through a spin-off from JDSU, now Viavi Solutions.
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