Lumentum (NASDAQ:LITE) Downgraded by Zacks Research to Hold

Zacks Research lowered shares of Lumentum (NASDAQ:LITE) from a strong-buy rating to a hold rating in a research report released on Monday morning,Zacks reports.

A number of other brokerages also recently weighed in on LITE. Weiss Ratings downgraded Lumentum from a “hold (c-)” rating to a “sell (d-)” rating in a research note on Wednesday, August 19th. UBS Group set a $820.00 target price on Lumentum in a report on Wednesday, August 12th. TD Cowen increased their price target on Lumentum from $800.00 to $820.00 and gave the company a “hold” rating in a research report on Wednesday, August 12th. Evercore assumed coverage on Lumentum in a report on Monday, August 31st. They set an “outperform” rating and a $1,100.00 price target on the stock. Finally, Wolfe Research reiterated an “outperform” rating on shares of Lumentum in a report on Friday, August 21st. Sixteen research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Lumentum presently has an average rating of “Moderate Buy” and an average price target of $1,078.75.

Lumentum Stock Performance

Shares of LITE stock opened at $987.99 on Monday. The firm has a 50-day moving average of $930.77 and a 200-day moving average of $873.79. The company has a market cap of $89.49 billion, a P/E ratio of -12.02 and a beta of 1.53. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.68 and a quick ratio of 1.40. Lumentum has a one year low of $152.54 and a one year high of $1,143.00.

Lumentum (NASDAQ:LITE) last released its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, beating analysts’ consensus estimates of $2.97 by $0.26. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The company had revenue of $1.01 billion for the quarter, compared to analyst estimates of $987.70 million. During the same period last year, the firm earned $0.88 earnings per share. The firm’s revenue was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Equities research analysts forecast that Lumentum will post 19.79 EPS for the current fiscal year.

Insider Activity

In other news, insider Vincent Retort sold 38,663 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $852.59, for a total transaction of $32,963,687.17. Following the completion of the sale, the insider owned 78,440 shares in the company, valued at $66,877,159.60. This trade represents a 33.02% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Jae Kim sold 12,000 shares of Lumentum stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $852.58, for a total transaction of $10,230,960.00. Following the completion of the sale, the senior vice president directly owned 37,804 shares in the company, valued at $32,230,934.32. This trade represents a 24.09% 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. Over the last ninety days, insiders sold 94,496 shares of company stock worth $85,978,498. 0.28% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Jupiter Topco LLC purchased a new stake in Lumentum in the 2nd quarter worth about $1,621,396,000. Amundi lifted its holdings in Lumentum by 188.7% during the second quarter. Amundi now owns 658,427 shares of the technology company’s stock valued at $564,970,000 after purchasing an additional 430,355 shares during the last quarter. WT Asset Management Ltd bought a new position in Lumentum during the second quarter worth about $494,688,000. Janus Henderson Group PLC boosted its position in Lumentum by 163.2% during the first quarter. Janus Henderson Group PLC now owns 567,182 shares of the technology company’s stock worth $398,590,000 after purchasing an additional 351,676 shares during the period. Finally, Legal & General Group Plc bought a new position in Lumentum during the second quarter worth about $376,539,000. Hedge funds and other institutional investors own 94.05% of the company’s stock.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum, Astera Labs and Corning demonstrated a 1060 nm VCSEL-based PCIe-over-optics platform for AI rack-scale connectivity. The technology could support future data-center bandwidth demand and strengthen Lumentum’s position in AI infrastructure. Lumentum, Astera Labs, and Corning Demonstrate PCIe over Optics
• Positive Sentiment: Several reports remain bullish, citing a backlog that is booked through early 2029, demand that exceeds available supply and a potential free-cash-flow inflection. These factors suggest strong visibility for revenue growth, although the shares trade at a demanding valuation. Lumentum’s Massive Backlog and Demand
• Neutral Sentiment: Investors and analysts have mixed views. Some see Lumentum as a leading momentum and AI stock, while others argue that its substantial gains this year warrant taking profits after a recent pullback. Analysts’ Opinions Are Mixed on Lumentum
• Negative Sentiment: Zacks Research downgraded LITE from “strong buy” to “hold,” reducing a source of near-term buying support.
• Negative Sentiment: Optical stocks have fallen broadly as investors question whether AI data-center spending can remain durable after their significant year-to-date gains. Lumentum’s long-term commitments and booked capacity have not insulated it from this sector repricing. Lumentum Down After AI Optics Concerns

Lumentum Company Profile

Lumentum Holdings Inc is a photonics and optical technology company that develops and manufactures products used to transmit, process and manage light. Its solutions support communications networks, data centers, cloud computing infrastructure, industrial applications, and other technology markets that rely on high-speed optical connectivity and precision lasers.

The company’s product portfolio includes optical components and modules for telecommunications and networking, lasers and laser systems, optical amplifiers, wavelength-management products, and photonic subsystems.