Lumentum (NASDAQ:LITE) Trading Down 4.6% – Should You Sell?

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price fell 4.6% on Thursday . The stock traded as low as $854.52 and last traded at $860.62. 6,027,948 shares were traded during mid-day trading, an increase of 1% from the average session volume of 5,966,197 shares. The stock had previously closed at $902.31.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on LITE. Zacks Research raised shares of Lumentum from a “hold” rating to a “strong-buy” rating in a report on Wednesday, May 13th. Morgan Stanley lifted their target price on shares of Lumentum from $710.00 to $900.00 and gave the company an “equal weight” rating in a report on Wednesday, May 6th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Lumentum in a report on Tuesday, April 21st. Loop Capital lifted their target price on shares of Lumentum from $900.00 to $1,400.00 and gave the company a “buy” rating in a report on Tuesday, May 5th. Finally, UBS Group lifted their target price on shares of Lumentum from $455.00 to $960.00 and gave the company a “neutral” rating in a report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $1,012.43.

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 company’s 50 day moving average is $862.40 and its 200 day moving average is $583.63. The stock has a market cap of $66.52 billion, a price-to-earnings ratio of 158.33 and a beta of 1.53.

Lumentum (NASDAQ:LITE) last announced its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, beating 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 firm had revenue of $808.40 million during the quarter, compared to analysts’ expectations of $810.21 million. During the same quarter last year, the business earned $0.57 earnings per share. The business’s revenue for the quarter was up 90.1% compared to the same quarter last year. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. Research analysts forecast that Lumentum Holdings Inc. will post 6.49 earnings per share for the current fiscal year.

Insider Transactions at Lumentum

In related news, CFO Wajid Ali sold 2,487 shares of the firm’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $953.95, for a total value of $2,372,473.65. Following the completion of the sale, the chief financial officer owned 60,951 shares in the company, valued at $58,144,206.45. This trade represents a 3.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 Ian Small sold 4,954 shares of Lumentum stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $868.07, for a total transaction of $4,300,418.78. Following the transaction, the director owned 21,008 shares of the company’s stock, valued at approximately $18,236,414.56. The trade was a 19.08% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 35,844 shares of company stock valued at $34,003,107. 0.43% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lumentum

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in LITE. Advisors Asset Management Inc. raised its position in Lumentum by 36.8% during the first quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company’s stock worth $59,000 after acquiring an additional 254 shares during the last quarter. NewEdge Advisors LLC grew its holdings in shares of Lumentum by 109.9% during the first quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company’s stock worth $747,000 after buying an additional 6,275 shares in the last quarter. Empowered Funds LLC grew its holdings in shares of Lumentum by 9.1% during the first quarter. Empowered Funds LLC now owns 8,139 shares of the technology company’s stock worth $507,000 after buying an additional 680 shares in the last quarter. Hsbc Holdings PLC purchased a new stake in shares of Lumentum during the second quarter worth about $298,000. Finally, Arrowstreet Capital Limited Partnership purchased a new stake in shares of Lumentum during the second quarter worth about $1,712,000. Institutional investors and hedge funds own 94.05% of the company’s stock.

Lumentum Company Profile

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.