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

Shares of Lumentum Holdings Inc. (NASDAQ:LITE) traded down 7.6% during mid-day trading on Wednesday . The stock traded as low as $594.84 and last traded at $602.35. Approximately 6,313,804 shares traded hands during mid-day trading, an increase of 10% from the average daily volume of 5,757,388 shares. The stock had previously closed at $651.93.

Analyst Ratings Changes

A number of analysts recently commented on LITE shares. Morgan Stanley lifted their price target on Lumentum from $710.00 to $900.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 6th. Rosenblatt Securities upped their price objective on Lumentum from $900.00 to $1,300.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. Zacks Research lowered Lumentum from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 6th. TD Cowen lowered their target price on Lumentum from $995.00 to $800.00 and set a “hold” rating on the stock in a research note on Monday, July 13th. Finally, Jefferies Financial Group reissued a “buy” rating and issued a $1,200.00 price target on shares of Lumentum in a report on Wednesday, May 6th. Fourteen investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, Lumentum currently has an average rating of “Moderate Buy” and an average price target of $1,012.67.

Lumentum Price Performance

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 company has a market cap of $55.23 billion, a P/E ratio of 133.56 and a beta of 1.48. The business’s fifty day moving average is $825.72 and its 200 day moving average is $736.71.

Lumentum (NASDAQ:LITE) last posted 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 business had revenue of $808.40 million for the quarter, compared to the consensus estimate of $810.21 million. During the same quarter in the prior year, the business earned $0.57 earnings per share. Lumentum’s revenue for the quarter was up 90.1% on a year-over-year basis. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, sell-side analysts anticipate that Lumentum Holdings Inc. will post 6.42 EPS for the current year.

Insider Transactions at Lumentum

In other news, CFO Wajid Ali sold 2,487 shares of the company’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $953.95, for a total transaction of $2,372,473.65. Following the transaction, the chief financial officer owned 60,951 shares of the company’s stock, valued at $58,144,206.45. This represents a 3.92% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 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 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 transaction, the insider owned 89,563 shares of the company’s stock, valued at $85,438,623.85. The trade was a 3.43% 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. Over the last 90 days, insiders sold 41,260 shares of company stock valued at $38,859,220. 0.43% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Lumentum

Institutional investors have recently added to or reduced their stakes in the business. Nomura Asset Management Co. Ltd. lifted its position in shares of Lumentum by 45.0% during the fourth quarter. Nomura Asset Management Co. Ltd. now owns 369,804 shares of the technology company’s stock worth $136,306,000 after acquiring an additional 114,714 shares in the last quarter. Financiere des Professionnels Fonds d investissement inc. bought a new position in shares of Lumentum in the first quarter worth $2,046,000. Andar Capital Management HK Ltd purchased a new position in shares of Lumentum in the fourth quarter valued at $4,325,000. Whittier Trust Co. grew its position in shares of Lumentum by 21,806.5% in the first quarter. Whittier Trust Co. now owns 74,044 shares of the technology company’s stock valued at $57,183,000 after purchasing an additional 73,706 shares in the last quarter. Finally, Styrax Capital LP grew its position in shares of Lumentum by 3.6% in the first quarter. Styrax Capital LP now owns 140,000 shares of the technology company’s stock valued at $98,386,000 after purchasing an additional 4,837 shares in the last quarter. 94.05% of the stock is owned by hedge funds and other institutional investors.

Lumentum Company Profile

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.