Lumentum (NASDAQ:LITE) Lowered to “Hold” Rating by Zacks Research

Lumentum (NASDAQ:LITE) was downgraded by investment analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued on Monday,Zacks.com reports.

LITE has been the topic of several other research reports. Bank of America boosted their price target on shares of Lumentum to $520.00 and gave the stock a “neutral” rating in a research note on Wednesday, February 4th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Lumentum in a research note on Monday, December 29th. JPMorgan Chase & Co. boosted their price target on shares of Lumentum to $950.00 and gave the stock an “overweight” rating in a research note on Thursday, April 9th. Morgan Stanley boosted their price target on shares of Lumentum to $595.00 and gave the stock an “equal weight” rating in a research note on Wednesday, March 18th. Finally, Needham & Company LLC boosted their price target on shares of Lumentum to $850.00 and gave the stock a “buy” rating in a research note on Wednesday, March 4th. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $629.44.

Lumentum Stock Down 2.1%

LITE opened at $852.79 on Monday. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.45 and a current ratio of 0.61. Lumentum has a fifty-two week low of $49.13 and a fifty-two week high of $960.00. The firm’s fifty day moving average is $688.49 and its 200 day moving average is $427.13. The stock has a market cap of $60.89 billion, a price-to-earnings ratio of 261.59 and a beta of 1.38.

Lumentum (NASDAQ:LITE) last released its earnings results on Tuesday, February 3rd. The technology company reported $1.67 earnings per share for the quarter, beating analysts’ consensus estimates of $1.41 by $0.26. Lumentum had a net margin of 11.95% and a return on equity of 17.27%. The company had revenue of $665.50 million for the quarter, compared to analysts’ expectations of $646.74 million. During the same quarter in the previous year, the company earned $0.42 EPS. Lumentum’s revenue for the quarter was up 65.5% on a year-over-year basis. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. On average, sell-side analysts forecast that Lumentum will post 0.03 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Vincent Retort sold 45,026 shares of the company’s stock in a transaction dated Thursday, February 12th. The shares were sold at an average price of $591.32, for a total transaction of $26,624,774.32. Following the transaction, the insider directly owned 102,455 shares in the company, valued at approximately $60,583,690.60. This represents a 30.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Yuen Wupen sold 3,157 shares of the company’s stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $538.00, for a total transaction of $1,698,466.00. Following the transaction, the insider owned 88,439 shares in the company, valued at $47,580,182. The trade was a 3.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 65,775 shares of company stock valued at $38,851,343. 0.43% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Lumentum

Hedge funds have recently added to or reduced their stakes in the company. EverSource Wealth Advisors LLC grew its holdings in Lumentum by 363.9% during the 3rd quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company’s stock valued at $27,000 after purchasing an additional 131 shares during the last quarter. V Square Quantitative Management LLC bought a new position in Lumentum during the 4th quarter valued at about $28,000. Truvestments Capital LLC boosted its position in Lumentum by 300.0% in the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock valued at $28,000 after buying an additional 57 shares during the period. Triumph Capital Management purchased a new stake in Lumentum in the 4th quarter valued at about $30,000. Finally, Danske Bank A S purchased a new stake in Lumentum in the 3rd quarter valued at about $33,000. 94.05% of the stock is currently owned by institutional investors.

Key Headlines Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Strong fundamentals and upbeat outlook: recent quarterly results beat estimates and the company reiterated robust guidance tied to AI-driven optical demand, supporting longer-term growth expectations. Why Lumentum (LITE) Just Saw One of the Most Aggressive Target Revisions in Tech
• Positive Sentiment: Analyst support: at least one firm recently raised LITE’s price target (to $875), signaling continued analyst conviction that revenue and margin momentum persist. Lumentum (NASDAQ:LITE) Price Target Raised to $875.00
• Positive Sentiment: Macro/sector tailwinds: multiple market write-ups highlight LITE as a beneficiary of the AI infrastructure boom and hyperscaler optical/network spending, and it’s listed among stocks that helped tech-driven rebounds. Buy 3 AI Infra Giants Flourishing Past Month With More Room to Run
• Neutral Sentiment: Wild share-price appreciation: multiple articles note Lumentum’s parabolic gains (1,500%–1,600%+ YTD/1yr), prompting debate about sustainability—coverage that both attracts buyers and highlights risk. Up 1,600% over the past year, does Lumentum stock have more room to run? Up 1,539% over the past year, what is next for red-hot Lumentum stock?
• Neutral Sentiment: Relative positioning: analysts comparing fiber-laser/optics peers still favor LITE on growth and estimate revisions versus some competitors, which supports investor rotation within the group. nLIGHT vs. Lumentum: Which Fiber Laser Stock is a Buy Right Now?
• Negative Sentiment: Technical/valuation risks: commentators flag LITE as overbought and vulnerable to a pullback after the steep rally; elevated valuation metrics increase the odds of short-term profit-taking. Soaring Lumentum stock gets overbought as Wyckoff points to a dive
• Negative Sentiment: Market dynamics/profit-taking: after the massive rally, intraday weakness is consistent with rotation and traders locking gains despite the positive fundamentals; this is exacerbated by high P/E and tighter near-term liquidity metrics. 5 Stocks in the S&P 500 ETF That Helped Erase Iran War Losses

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.