Lumentum (NASDAQ:LITE) Trading Down 4.2% – Time to Sell?

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price traded down 4.2% during trading on Monday . The stock traded as low as $761.53 and last traded at $768.15. 3,673,767 shares traded hands during mid-day trading, a decline of 37% from the average daily volume of 5,876,869 shares. The stock had previously closed at $802.01.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the stock. JPMorgan Chase & Co. boosted their target price on shares of Lumentum from $950.00 to $1,130.00 and gave the stock an “overweight” rating in a report on Wednesday, May 6th. Raymond James Financial restated an “outperform” rating and set a $1,014.00 price objective on shares of Lumentum in a research report on Wednesday, May 6th. UBS Group raised their price target on shares of Lumentum from $455.00 to $960.00 and gave the stock a “neutral” rating in a report on Wednesday, May 6th. Mizuho set a $1,100.00 target price on shares of Lumentum in a research note on Wednesday, May 6th. Finally, Loop Capital increased their price target on Lumentum from $900.00 to $1,400.00 and gave the stock a “buy” rating in a report on Tuesday, May 5th. Fourteen equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Lumentum currently has a consensus rating of “Moderate Buy” and an average price target of $1,012.67.

Lumentum Trading Up 6.1%

The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14. The business has a 50 day moving average of $876.03 and a two-hundred day moving average of $705.88. The firm has a market capitalization of $63.39 billion, a price-to-earnings ratio of 150.89 and a beta of 1.48.

Lumentum (NASDAQ:LITE) last released 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 return on equity of 24.81% and a net margin of 17.61%.The firm had revenue of $808.40 million during the quarter, compared to the consensus estimate of $810.21 million. During the same quarter in the previous year, the company posted $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. Equities analysts predict that Lumentum Holdings Inc. will post 6.4 EPS for the current year.

Insider Transactions at Lumentum

In other news, insider Vincent Retort sold 3,183 shares of the business’s stock in a transaction dated 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 completion of the sale, the insider directly owned 89,563 shares of the company’s stock, valued at $85,438,623.85. The trade was a 3.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, 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 Brian Lillie sold 11,951 shares of the company’s stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $981.64, for a total transaction of $11,731,579.64. Following the completion of the sale, the director owned 13,959 shares in the company, valued at $13,702,712.76. This represents a 46.13% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 41,260 shares of company stock valued at $38,859,220. Corporate insiders own 0.43% of the company’s stock.

Institutional Trading of Lumentum

Several institutional investors have recently made changes to their positions in the company. Arrowstreet Capital Limited Partnership raised its stake in shares of Lumentum by 18.7% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company’s stock worth $683,661,000 after purchasing an additional 291,591 shares during the period. Geode Capital Management LLC raised its position in Lumentum by 9.6% in the fourth quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company’s stock worth $521,563,000 after acquiring an additional 123,265 shares during the period. Situational Awareness LP boosted its stake in Lumentum by 210.9% in the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock valued at $478,577,000 after acquiring an additional 880,800 shares during the last quarter. Norges Bank bought a new position in shares of Lumentum during the 4th quarter valued at approximately $474,495,000. Finally, Value Aligned Research Advisors LLC purchased a new stake in shares of Lumentum during the 4th quarter worth approximately $432,062,000. 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.