Lumentum (NASDAQ:LITE) Stock Gets Price Target Cut from UBS Group

Lumentum (NASDAQ:LITE) had its price target lowered by research analysts at UBS Group from $960.00 to $686.00 in a research note issued on Tuesday, Benzinga reports. The firm currently has a “neutral” rating on the technology company’s stock. UBS Group‘s price target points to a potential upside of 17.13% from the company’s previous close.

Other analysts have also recently issued research reports about the company. Citigroup lifted their price target on Lumentum from $1,200.00 to $1,400.00 and gave the company a “buy” rating in a report on Monday, September 28th. B. Riley Financial lowered shares of Lumentum from a “buy” rating to a “neutral” rating and cut their price objective for the stock from $1,142.00 to $770.00 in a report on Tuesday, November 3rd. Mizuho set a $1,132.00 target price on shares of Lumentum in a research report on Monday, November 2nd. Sanford C. Bernstein raised their target price on shares of Lumentum from $635.00 to $700.00 and gave the stock an “outperform” rating in a research report on Tuesday. Finally, JPMorgan Chase & Co. boosted their target price on shares of Lumentum from $1,165.00 to $1,280.00 and gave the company an “overweight” rating in a report on Wednesday, August 12th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $1,053.17.

Lumentum Price Performance

NASDAQ:LITE traded down $10.48 during mid-day trading on Tuesday, hitting $585.68. 4,152,304 shares of the company’s stock traded hands, compared to its average volume of 5,586,308. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.40 and a current ratio of 1.61. The firm’s 50 day simple moving average is $888.15 and its 200 day simple moving average is $802.77. Lumentum has a 1 year low of $215.35 and a 1 year high of $1,143.00. The company has a market cap of $53.12 billion, a PE ratio of -7.45 and a beta of 1.64.

Lumentum (NASDAQ:LITE) last posted its earnings results on Monday, November 2nd. The technology company reported $4.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.22 by $0.35. Lumentum had a positive return on equity of 28.85% and a negative net margin of 175.82%. The firm had revenue of $1.26 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same quarter in the prior year, the company earned $1.10 EPS. Lumentum’s revenue was up 136.5% on a year-over-year basis. Sell-side analysts expect that Lumentum will post 19.93 EPS for the current year.

Insider Buying and Selling

In other news, CEO Michael E. Hurlston sold 548 shares of the business’s stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $958.66, for a total transaction of $525,345.68. Following the completion of the sale, the chief executive officer owned 186,951 shares in the company, valued at approximately $179,222,445.66. The trade was a 0.29% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Yuen Wupen sold 1,500 shares of the stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $827.82, for a total transaction of $1,241,730.00. Following the sale, the insider directly owned 100,434 shares of the company’s stock, valued at approximately $83,141,273.88. This trade represents a 1.47% 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. Over the last quarter, insiders sold 94,496 shares of company stock worth $85,978,498. Corporate insiders own 0.28% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Burkett Financial Services LLC purchased a new position in Lumentum during the 3rd quarter worth approximately $28,000. Putney Financial Group LLC purchased a new stake in shares of Lumentum in the third quarter valued at $28,000. Signature Equity Partners LLC lifted its holdings in shares of Lumentum by 220.0% in the third quarter. Signature Equity Partners LLC now owns 32 shares of the technology company’s stock valued at $31,000 after purchasing an additional 22 shares in the last quarter. Meeder Asset Management Inc. acquired a new stake in shares of Lumentum in the second quarter worth $40,000. Finally, Latitude Advisors LLC acquired a new stake in shares of Lumentum in the third quarter worth $40,000. 94.05% of the stock is owned by institutional investors and hedge funds.

Key Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Sanford C. Bernstein raised its price target on Lumentum from $635 to $700 and reiterated an “outperform” rating, signaling potential upside in the analyst’s view. Analyst rating report
• Positive Sentiment: Lumentum rose alongside other optical stocks in an AI-related rebound on Nov. 9, with one report describing an 11% gain as the sector recovery continued. That bounce may help sentiment after the recent selloff. Article on Lumentum’s rebound
• Negative Sentiment: Commentary says Marvell’s share-price decline has reduced the implied value of its proposed stock-based acquisition of Lumentum—from a previously cited $1,132 per share to $774. Because the offer’s value is tied to Marvell stock, its weakness can weigh on LITE and adds uncertainty to the deal’s perceived value. Acquisition-value analysis
• Negative Sentiment: Brodsky & Smith announced an investigation involving Lumentum and invited shareholders to contact the firm. The notice provides no details about the inquiry, but the headline may add investor uncertainty. Shareholder investigation notice

Lumentum Company Profile

Lumentum Holdings Inc. develops and manufactures optical and photonic products used in communications networks and industrial applications. Its offerings include optical components, modules and lasers that help transmit and process data across telecommunications and data center networks. The company also supplies lasers and related technologies for industrial uses, including precision manufacturing and semiconductor production. Its products serve customers in markets around the world. Lumentum became an independent public company in 2015 through a spin-off from JDSU, now Viavi Solutions.