Lumentum (NASDAQ:LITE) Shares Gap Up – Here’s Why

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price gapped up prior to trading on Friday . The stock had previously closed at $233.24, but opened at $249.50. Lumentum shares last traded at $239.2980, with a volume of 3,853,190 shares.

Wall Street Analyst Weigh In

Several brokerages have recently commented on LITE. Susquehanna increased their target price on Lumentum from $140.00 to $190.00 and gave the stock a “positive” rating in a report on Wednesday, October 22nd. Weiss Ratings restated a “sell (d+)” rating on shares of Lumentum in a research report on Wednesday. Rosenblatt Securities boosted their target price on shares of Lumentum to $280.00 and gave the stock a “buy” rating in a research note on Wednesday, November 5th. JPMorgan Chase & Co. increased their price target on shares of Lumentum from $145.00 to $185.00 and gave the company an “overweight” rating in a research note on Thursday, October 16th. Finally, Citigroup assumed coverage on shares of Lumentum in a report on Friday, August 29th. They issued a “buy” rating and a $165.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $196.88.

Lumentum Price Performance

The firm has a market capitalization of $17.48 billion, a price-to-earnings ratio of 165.18 and a beta of 1.48. The company has a quick ratio of 1.02, a current ratio of 1.37 and a debt-to-equity ratio of 2.77. The company’s fifty day moving average is $187.70 and its two-hundred day moving average is $130.09.

Lumentum (NASDAQ:LITE) last released its earnings results on Tuesday, November 4th. The technology company reported $1.10 EPS for the quarter, topping analysts’ consensus estimates of $1.03 by $0.07. The firm had revenue of $533.80 million during the quarter, compared to analyst estimates of $525.10 million. Lumentum had a net margin of 6.11% and a return on equity of 4.62%. The business’s quarterly revenue was up 58.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.18 EPS. Lumentum has set its Q2 2026 guidance at 1.300-1.500 EPS. Equities research analysts anticipate that Lumentum Holdings Inc. will post 0.03 earnings per share for the current fiscal year.

Insider Activity at Lumentum

In other news, insider Yuen Wupen sold 3,282 shares of the company’s stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $119.25, for a total value of $391,378.50. Following the completion of the sale, the insider directly owned 104,554 shares of the company’s stock, valued at $12,468,064.50. This represents a 3.04% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Wajid Ali sold 2,526 shares of Lumentum stock in a transaction that occurred on Tuesday, August 26th. The stock was sold at an average price of $124.39, for a total transaction of $314,209.14. Following the transaction, the chief financial officer directly owned 77,087 shares in the company, valued at $9,588,851.93. The trade was a 3.17% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 33,458 shares of company stock worth $7,284,040. 0.43% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lumentum

Several institutional investors and hedge funds have recently made changes to their positions in the company. Envestnet Asset Management Inc. lifted its holdings in Lumentum by 27.0% during the first quarter. Envestnet Asset Management Inc. now owns 12,837 shares of the technology company’s stock worth $800,000 after acquiring an additional 2,729 shares in the last quarter. Teachers Retirement System of The State of Kentucky raised its position in shares of Lumentum by 73.4% during the first quarter. Teachers Retirement System of The State of Kentucky now owns 38,738 shares of the technology company’s stock worth $2,415,000 after purchasing an additional 16,398 shares during the period. Allianz Asset Management GmbH bought a new position in shares of Lumentum during the 1st quarter valued at about $3,411,000. Y Intercept Hong Kong Ltd acquired a new position in shares of Lumentum in the 1st quarter valued at approximately $1,236,000. Finally, Pinnacle Associates Ltd. increased its stake in Lumentum by 2.0% during the 1st quarter. Pinnacle Associates Ltd. now owns 339,689 shares of the technology company’s stock worth $21,176,000 after purchasing an additional 6,582 shares in the last quarter. Institutional investors and hedge funds own 94.05% of the company’s stock.

About Lumentum

Lumentum Holdings Inc manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables.