Lumentum (NASDAQ:LITE) Shares Down 6.1% – Should You Sell?

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price traded down 6.1% during mid-day trading on Thursday . The company traded as low as $693.00 and last traded at $706.23. Approximately 3,957,376 shares traded hands during mid-day trading, a decline of 32% from the average daily volume of 5,837,806 shares. The stock had previously closed at $752.00.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Zacks upgraded Lumentum to a Rank #2 (Buy) after raising earnings estimates, reinforcing the view that AI data center optics demand could continue to lift revenue and profit expectations. Lumentum (LITE) Is Up 6.3% After Zacks Upgrade on AI Data Center Optics Demand Shift
• Positive Sentiment: Another Zacks piece also highlighted the upgrade to Buy, signaling improving near-term earnings optimism for LITE. Lumentum (LITE) Upgraded to Buy: What Does It Mean for the Stock?
• Positive Sentiment: UBS noted that data center investment should keep driving demand for Lumentum’s products, even though supply constraints remain a risk. ANET, CLS, EXTR, LITE stock in focus — UBS sees data center investments to drive demand, but supply constraints persist
• Neutral Sentiment: Citi reportedly added Lumentum to its 90-day catalyst watch, putting the stock on investors’ radar for a possible near-term move. Lumentum in focus as Citi adds 90-day catalyst watch
• Neutral Sentiment: Comparison articles versus Applied Digital and broader stock-watch coverage suggest investors are viewing Lumentum as a higher-quality AI infrastructure play, but these pieces do not change fundamentals on their own. LITE vs. APLD: Which AI Infrastructure Stock Offers Better Growth?
• Negative Sentiment: Recent coverage also noted that the AI optics trade has cooled, with investors pulling back from high-beta names like Lumentum, which may be weighing on the shares despite the positive analyst news. Applied Optoelectronics Falls 12%, Coherent and Lumentum Slide as AI Optics Trade Cools
• Negative Sentiment: UBS also reaffirmed a Hold rating on Lumentum, indicating that not all analysts see immediate upside from current levels. UBS Reaffirms Their Hold Rating on Lumentum Holdings (LITE)

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on LITE shares. JPMorgan Chase & Co. increased their target price on Lumentum from $950.00 to $1,130.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. Barclays boosted their price target on shares of Lumentum from $750.00 to $1,000.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 6th. BNP Paribas Exane upped their price target on shares of Lumentum from $1,040.00 to $1,300.00 in a research note on Wednesday, May 6th. B. Riley Financial reiterated a “buy” rating on shares of Lumentum in a research report on Friday, May 1st. Finally, Raymond James Financial reissued an “outperform” rating and issued a $1,014.00 price objective on shares of Lumentum in a research note on Wednesday, May 6th. Fourteen research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $1,012.67.

Lumentum Price Performance

The firm has a market capitalization of $54.94 billion, a P/E ratio of 130.78 and a beta of 1.48. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01. The firm has a 50 day moving average price of $872.19 and a 200-day moving average price of $708.38.

Lumentum (NASDAQ:LITE) last released its earnings results 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. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The firm had revenue of $808.40 million for the quarter, compared to the consensus estimate of $810.21 million. During the same quarter in the previous year, the company posted $0.57 EPS. The company’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. On average, analysts expect that Lumentum Holdings Inc. will post 6.4 earnings per share for the current year.

Insider Activity at Lumentum

In other news, Director Ian Small sold 4,954 shares of the firm’s stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $868.07, for a total value of $4,300,418.78. Following the completion of the sale, the director owned 21,008 shares in the company, valued at approximately $18,236,414.56. This trade represents a 19.08% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Yuen Wupen sold 3,210 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 transaction of $3,062,179.50. Following the completion of the sale, the insider owned 81,488 shares of the company’s stock, valued at $77,735,477.60. This trade represents a 3.79% decrease in their position. 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. Insiders sold 41,260 shares of company stock valued at $38,859,220 over the last three months. Corporate insiders own 0.43% of the company’s stock.

Institutional Trading of Lumentum

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in LITE. Hilton Head Capital Partners LLC bought a new stake in Lumentum in the first quarter worth about $25,000. Sachetta LLC grew its stake in shares of Lumentum by 118.8% during the first 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. V Square Quantitative Management LLC bought a new position in shares of Lumentum during the fourth quarter valued at approximately $28,000. Truvestments Capital LLC raised its holdings in shares of Lumentum by 300.0% in the fourth quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock worth $28,000 after buying an additional 57 shares during the period. Finally, Triumph Capital Management purchased a new stake in shares of Lumentum in the fourth quarter worth approximately $30,000. 94.05% of the stock is owned by hedge funds and other institutional investors.

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.