Lumentum (NASDAQ:LITE) Stock Price Up 11.1% – Still a Buy?

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price traded up 11.1% on Thursday . The stock traded as high as $804.90 and last traded at $785.77. 5,453,136 shares were traded during mid-day trading, a decline of 8% from the average session volume of 5,910,556 shares. The stock had previously closed at $707.10.

Analysts Set New Price Targets

Several research firms have weighed in on LITE. TD Cowen lifted their target price on Lumentum from $875.00 to $995.00 and gave the stock a “hold” rating in a report on Wednesday, May 6th. BNP Paribas Exane raised their price target on Lumentum from $1,040.00 to $1,300.00 in a research report on Wednesday, May 6th. Northland Securities lifted their price objective on Lumentum from $1,000.00 to $1,200.00 and gave the company an “outperform” rating in a report on Wednesday, June 3rd. Mizuho set a $1,100.00 price objective on Lumentum in a research report on Wednesday, May 6th. Finally, Loop Capital increased their target price on Lumentum from $900.00 to $1,400.00 and gave the stock a “buy” rating in a research note on Tuesday, May 5th. Fourteen analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat.com, Lumentum presently has a consensus rating of “Moderate Buy” and a consensus price target of $1,021.95.

Lumentum Stock Up 2.1%

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 has a market capitalization of $62.40 billion, a price-to-earnings ratio of 148.52 and a beta of 1.48. The firm has a 50-day moving average price of $882.31 and a two-hundred day moving average price of $698.09.

Lumentum (NASDAQ:LITE) last announced its earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.27 by $0.10. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The business had revenue of $808.40 million for the quarter, compared to analyst estimates of $810.21 million. During the same quarter last year, the firm earned $0.57 EPS. Lumentum’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. As a group, sell-side analysts anticipate that Lumentum Holdings Inc. will post 6.4 earnings per share for the current fiscal year.

Insider Activity at Lumentum

In other news, insider Vincent Retort sold 3,183 shares of the firm’s stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $3,036,422.85. Following the completion of the transaction, the insider owned 89,563 shares in the company, valued at $85,438,623.85. This trade represents a 3.43% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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, insider Yuen Wupen sold 3,210 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $953.95, for a total value of $3,062,179.50. Following the completion of the transaction, the insider owned 81,488 shares of the company’s stock, valued at approximately $77,735,477.60. This represents a 3.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. Over the last 90 days, insiders sold 41,260 shares of company stock worth $38,859,220. Corporate insiders own 0.43% of the company’s stock.

Hedge Funds Weigh In On Lumentum

Institutional investors have recently bought and sold shares of the business. Hilltop National Bank increased its position in shares of Lumentum by 26.8% during the second quarter. Hilltop National Bank now owns 71 shares of the technology company’s stock worth $61,000 after acquiring an additional 15 shares in the last quarter. Sachetta LLC lifted its position in 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 acquiring an additional 19 shares in the last quarter. Versant Capital Management Inc lifted its position in Lumentum by 39.5% in the 2nd quarter. Versant Capital Management Inc now owns 106 shares of the technology company’s stock valued at $91,000 after acquiring an additional 30 shares in the last quarter. Hilton Head Capital Partners LLC acquired a new position in Lumentum during the 1st quarter valued at about $25,000. Finally, Abel Hall LLC boosted its stake in Lumentum by 5.5% during the 1st quarter. Abel Hall LLC now owns 693 shares of the technology company’s stock valued at $487,000 after purchasing an additional 36 shares during the last quarter. Institutional investors and hedge funds 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.