Lumentum (NASDAQ:LITE) Stock Falls 11.5% – Time to Sell?

23 Oct 2026, 00:16 by Kim Johansen · The Markets Daily

Lumentum Holdings Inc. (NASDAQ:LITE – Get Free Report)’s stock price dropped 11.5% during mid-day trading on Thursday. The stock traded as low as $746.23 and last traded at $752.54. Approximately 6,092,261 shares were traded during trading, an increase of 11% from the average session volume of 5,478,972 shares. The stock had previously closed at $850.70.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on LITE shares. Morgan Stanley raised their price target on Lumentum from $900.00 to $1,000.00 and gave the stock an “equal weight” rating in a report on Wednesday, August 12th. Jefferies Financial Group upped their price objective on shares of Lumentum from $1,200.00 to $1,250.00 and gave the company a “buy” rating in a report on Tuesday. Zacks Research lowered shares of Lumentum from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 12th. Needham & Company LLC reiterated a “buy” rating and issued a $1,040.00 target price on shares of Lumentum in a research note on Wednesday, August 12th. Finally, Stifel Nicolaus boosted their target price on shares of Lumentum from $1,100.00 to $1,232.00 and gave the stock a “buy” rating in a research report on Monday, October 5th. Sixteen equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Lumentum presently has an average rating of “Moderate Buy” and a consensus price target of $1,080.83.

Get Our Latest Stock Report on LITE

Lumentum Stock Performance

The stock has a market capitalization of $68.17 billion, a PE ratio of -9.15 and a beta of 1.53. The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01. The firm has a 50 day moving average price of $930.30 and a 200-day moving average price of $879.13.

Lumentum (NASDAQ:LITE – Get Free Report) last issued its earnings results on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, beating analysts’ consensus estimates of $2.97 by $0.26. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%. The firm had revenue of $1.01 billion for the quarter, compared to analyst estimates of $987.70 million. During the same quarter in the prior year, the firm earned $0.88 earnings per share. Lumentum’s revenue for the quarter was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Research analysts expect that Lumentum Holdings Inc. will post 19.79 EPS for the current fiscal year.

Insider Activity at Lumentum

In other news, CFO Wajid Ali sold 24,542 shares of the stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $1,048.50, for a total value of $25,732,287.00. Following the sale, the chief financial officer owned 75,074 shares in the company, valued at $78,715,089. This represents a 24.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 307 shares of the firm’s stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $945.00, for a total transaction of $290,115.00. Following the transaction, the insider directly owned 108,320 shares of the company’s stock, valued at approximately $102,362,400. This trade represents a 0.28% decrease in their position. 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. Over the last 90 days, insiders have sold 94,496 shares of company stock valued at $85,978,498. Company insiders own 0.28% of the company’s stock.

Institutional Investors Weigh In On Lumentum

Hedge funds have recently added to or reduced their stakes in the business. Hilton Head Capital Partners LLC acquired a new stake in Lumentum during the 1st quarter worth about $25,000. Sachetta LLC raised its stake in shares of Lumentum by 118.8% during the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock valued at $25,000 after buying an additional 19 shares during the last quarter. Burkett Financial Services LLC acquired a new position in shares of Lumentum in the 3rd quarter valued at about $28,000. Meeder Asset Management Inc. acquired a new position in shares of Lumentum in the 2nd quarter valued at about $40,000. Finally, Keating Financial Advisory Services Inc. acquired a new position in shares of Lumentum in the 2nd quarter valued at about $41,000. 94.05% of the stock is owned by hedge funds and other institutional investors.

Lumentum Company Profile

(Get Free Report)

Lumentum Holdings Inc is a technology company that designs and manufactures optical and photonic products for communications networks, industrial applications, and consumer electronics. Its portfolio includes optical components, modules, and subsystems used in fiber-optic networks, data centers, cloud computing infrastructure, telecommunications equipment, and high-speed connectivity systems.