Lumentum (NASDAQ:LITE) Shares Down 1.4% Following Insider Selling

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price traded down 1.4% on Friday after an insider sold shares in the company. The company traded as low as $855.01 and last traded at $866.71. 3,643,510 shares traded hands during trading, a decline of 36% from the average daily volume of 5,713,662 shares. The stock had previously closed at $879.28.

Specifically, SVP Jae Kim sold 1,904 shares of Lumentum stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $827.82, for a total value of $1,576,169.28. Following the completion of the transaction, the senior vice president directly owned 42,096 shares of the company’s stock, valued at $34,847,910.72. The trade was a 4.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through 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 2,483 shares of the company’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $827.82, for a total transaction of $2,055,477.06. Following the transaction, the insider owned 109,438 shares in the company, valued at approximately $90,594,965.16. This trade represents a 2.22% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In other Lumentum news, insider Yuen Wupen sold 500 shares of the stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $898.15, for a total transaction of $449,075.00. Following the sale, the insider owned 93,229 shares of the company’s stock, valued at $83,733,626.35. This represents a 0.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the stock. Mizuho boosted their target price on shares of Lumentum from $1,100.00 to $1,140.00 and gave the stock an “outperform” rating in a research note on Wednesday, August 12th. Craig Hallum increased their price target on shares of Lumentum from $900.00 to $1,150.00 in a research note on Wednesday, May 6th. Needham & Company LLC reissued a “buy” rating and set a $1,040.00 price target on shares of Lumentum in a research note on Wednesday, August 12th. 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. Finally, Loop Capital boosted their price objective on shares of Lumentum from $900.00 to $1,400.00 and gave the stock a “buy” rating in a research report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Lumentum currently has an average rating of “Moderate Buy” and an average target price of $1,044.67.

Lumentum News Roundup

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Northland Securities raised its Lumentum earnings forecasts substantially. The firm lifted its FY2027 EPS estimate to $19.81 from $14.97, with quarterly estimates now ranging from $3.81 in Q1 to $6.20 in Q4. Northland maintained an “Outperform” rating and a $1,200 price target, supporting the bullish case for continued earnings growth. Northland Securities analyst estimate report
• Positive Sentiment: Lumentum is being highlighted as an AI-infrastructure beneficiary. Analysts and financial publications point to rising demand for optical networking equipment as data centers expand to support artificial intelligence workloads. Lumentum is positioned across the optics and networking portions of that buildout. Beyond Chipmakers: 4 Stocks to Buy That Power AI Data Center Expansion
• Positive Sentiment: LITE was added to Zacks’ Rank #1 momentum-stock list. The designation may attract momentum-oriented investors and reinforces the stock’s strong recent performance. Best Momentum Stocks to Buy for August 21st
• Neutral Sentiment: A report on data-center construction emphasized the enormous fiber requirements of new AI facilities, a potential long-term demand driver for optical-component suppliers such as Lumentum. However, the article provided limited company-specific financial updates. A Single Meta Data Center Will Require “8 Million Miles of Fiber”
• Negative Sentiment: Valuation concerns could be limiting further upside. A Seeking Alpha analysis characterized Lumentum as increasingly expensive after its sharp rally. With the shares near their 52-week high and the company still reporting a negative net margin, some investors may be taking profits despite the favorable growth outlook. Lumentum: It’s Getting Expensive

Lumentum Trading Down 1.4%

The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.40 and a current ratio of 1.68. The company has a market capitalization of $77.74 billion, a price-to-earnings ratio of -10.54 and a beta of 1.50. The business’s 50-day simple moving average is $809.76 and its 200-day simple moving average is $790.21.

Lumentum (NASDAQ:LITE) last issued its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, topping the consensus estimate of $2.97 by $0.26. The company had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. Lumentum’s revenue was up 109.3% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. On average, research analysts expect that Lumentum Holdings Inc. will post 19.76 earnings per share for the current fiscal year.

Institutional Trading of Lumentum

A number of institutional investors have recently bought and sold shares of LITE. HB Wealth Management LLC raised its position in shares of Lumentum by 16.8% during the 2nd quarter. HB Wealth Management LLC now owns 2,527 shares of the technology company’s stock valued at $2,168,000 after acquiring an additional 364 shares during the last quarter. Saudi Central Bank boosted its position in shares of Lumentum by 91.0% in the 2nd quarter. Saudi Central Bank now owns 4,998 shares of the technology company’s stock worth $4,289,000 after purchasing an additional 2,381 shares during the last quarter. Chico Wealth RIA bought a new position in shares of Lumentum in the 2nd quarter worth $216,000. Angeles Wealth Management LLC acquired a new stake in shares of Lumentum during the second quarter worth $210,000. Finally, AlphaGrep UK Ltd acquired a new stake in shares of Lumentum during the second quarter worth $1,216,000. Institutional investors and hedge funds own 94.05% of the company’s stock.

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.