Lumentum (NASDAQ:LITE) Stock Price Down 7.6% – Should You Sell?

by · The Markets Daily

Lumentum Holdings Inc. (NASDAQ:LITE – Get Free Report)’s stock price traded down 7.6% during trading on Wednesday . The company traded as low as $594.84 and last traded at $602.35. 6,313,804 shares traded hands during trading, an increase of 10% from the average session volume of 5,757,388 shares. The stock had previously closed at $651.93.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on LITE. Citic Securities boosted their price objective on shares of Lumentum from $620.00 to $1,186.00 in a report on Monday, May 11th. Mizuho set a $1,100.00 target price on Lumentum in a research note on Wednesday, May 6th. UBS Group lifted their target price on Lumentum from $455.00 to $960.00 and gave the stock a “neutral” rating in a report on Wednesday, May 6th. Needham & Company LLC restated a “buy” rating and issued a $1,040.00 price target on shares of Lumentum in a research note on Tuesday, June 9th. Finally, JPMorgan Chase & Co. boosted their price target on Lumentum from $950.00 to $1,130.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. Fourteen equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $1,012.67.

Read Our Latest Analysis on LITE

Lumentum Price Performance

The business’s 50 day moving average price is $836.46 and its 200 day moving average price is $732.51. The stock has a market capitalization of $46.86 billion, a P/E ratio of 111.55 and a beta of 1.48. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97.

Lumentum (NASDAQ:LITE – Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, beating the consensus estimate of $2.27 by $0.10. The firm had revenue of $808.40 million during the quarter, compared to analysts’ expectations of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The firm’s quarterly revenue was up 90.1% on a year-over-year basis. During the same period in the previous year, the company earned $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. Sell-side analysts forecast that Lumentum Holdings Inc. will post 6.42 EPS for the current year.

Insiders Place Their Bets

In other news, SVP Jae Kim sold 1,422 shares of the firm’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $1,356,516.90. Following the transaction, the senior vice president directly owned 32,333 shares in the company, valued at $30,844,065.35. This trade represents a 4.21% decrease in their position. The transaction was disclosed in a 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, insider Vincent Retort sold 3,183 shares of the firm’s stock in a transaction on 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 approximately $85,438,623.85. This trade represents a 3.43% 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. Insiders have sold a total of 41,260 shares of company stock worth $38,859,220 in the last 90 days. Insiders own 0.43% of the company’s stock.

Institutional Trading of Lumentum

A number of hedge funds have recently bought and sold shares of LITE. Nomura Asset Management Co. Ltd. increased its holdings in Lumentum by 45.0% during the fourth quarter. Nomura Asset Management Co. Ltd. now owns 369,804 shares of the technology company’s stock valued at $136,306,000 after buying an additional 114,714 shares during the last quarter. Andar Capital Management HK Ltd bought a new stake in shares of Lumentum during the 4th quarter valued at $4,325,000. Whittier Trust Co. grew its position in shares of Lumentum by 21,806.5% during the 1st quarter. Whittier Trust Co. now owns 74,044 shares of the technology company’s stock valued at $57,183,000 after acquiring an additional 73,706 shares during the period. Financiere des Professionnels Fonds d investissement inc. purchased a new stake in shares of Lumentum in the 1st quarter worth $2,046,000. Finally, Styrax Capital LP increased its stake in shares of Lumentum by 3.6% in the 1st quarter. Styrax Capital LP now owns 140,000 shares of the technology company’s stock worth $98,386,000 after purchasing an additional 4,837 shares in the last quarter. Hedge funds and other institutional investors own 94.05% of the company’s stock.

About Lumentum

(Get Free Report)

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.

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