Lumentum (NASDAQ:LITE) Shares Down 5.4% Following Insider Selling

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price dropped 5.4% during mid-day trading on Thursday following insider selling activity. The company traded as low as $933.82 and last traded at $935.70. 3,943,422 shares changed hands during trading, a decline of 29% from the average session volume of 5,585,797 shares. The stock had previously closed at $988.98.

Specifically, insider Yuen Wupen sold 500 shares of Lumentum stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $961.44, for a total transaction of $480,720.00. Following the transaction, the insider directly owned 114,627 shares of the company’s stock, valued at $110,206,982.88. The trade was a 0.43% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 500 shares of the business’s stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $895.99, for a total value of $447,995.00. Following the transaction, the insider owned 115,627 shares of the company’s stock, valued at approximately $103,600,635.73. This trade represents a 0.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In other Lumentum news, insider Yuen Wupen sold 500 shares of the firm’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $860.00, for a total transaction of $430,000.00. Following the sale, the insider owned 116,127 shares in the company, valued at approximately $99,869,220. This trade represents a 0.43% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on LITE shares. UBS Group set a $820.00 price target on shares of Lumentum in a research report on Wednesday, August 12th. Citigroup restated a “buy” rating on shares of Lumentum in a research report on Wednesday, August 12th. Bank of America lowered their target price on shares of Lumentum from $1,100.00 to $1,000.00 and set a “neutral” rating on the stock in a research note on Wednesday, August 12th. Mizuho upped their target price on shares of Lumentum from $1,100.00 to $1,140.00 and gave the stock an “outperform” rating in a report on Wednesday, August 12th. Finally, Deutsche Bank Aktiengesellschaft assumed coverage on Lumentum in a research note on Monday, August 31st. They issued a “buy” rating and a $1,200.00 price target for the company. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $1,053.83.

More Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: AI data-center demand remains the main catalyst. Lumentum is benefiting from the shift from copper to fiber optics, record 800G transceiver shipments and tight supply of EML lasers. Analysts see significant growth potential as customers increase spending on high-speed optical infrastructure, particularly from 2027 onward. Lumentum: Why 2027 Will Be a Game Changer
• Positive Sentiment: Recent financial results and guidance were strong. Lumentum’s latest quarterly revenue reached approximately $1.01 billion, while adjusted EPS of $3.23 exceeded the $2.97 consensus estimate. Revenue more than doubled year over year, and first-quarter fiscal 2027 EPS guidance of $4.05 to $4.35 supports expectations for continued earnings momentum.
• Positive Sentiment: Analyst and institutional interest remains supportive. LITE has been highlighted as an AI infrastructure “buy zone” stock, and the analyst consensus remains “Moderate Buy,” with an average price target above the latest reported trading level. Institutional investors and hedge funds own approximately 94% of the shares. Top Funds Bet Billions As This AI Stock Lights Up a Buy Zone
• Neutral Sentiment: Competitive risks are increasing. Applied Optoelectronics is expanding 800G and 1.6T optical capacity as AI networking demand rises, highlighting the intensifying competition Lumentum faces in a rapidly growing market. AAOI’s Optical Networking Demand Rise
• Negative Sentiment: Repeated insider selling may be weighing on sentiment. Insider Yuen Wupen sold 500 shares for approximately $481,000 on September 10 and another 500 shares for about $448,000 on September 8. The trades were made under a pre-arranged Rule 10b5-1 plan and represent only 0.43% of the insider’s holdings per transaction, limiting their significance but still signaling profit-taking at elevated prices. Lumentum Insider Sale

Lumentum Trading Down 0.9%

The company has a debt-to-equity ratio of 0.01, a current ratio of 1.68 and a quick ratio of 1.40. The stock’s 50-day moving average is $829.50 and its two-hundred day moving average is $827.28. The stock has a market cap of $83.15 billion, a P/E ratio of -11.28 and a beta of 1.53.

Lumentum (NASDAQ:LITE) last announced its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.97 by $0.26. The company had revenue of $1.01 billion for the quarter, compared to the consensus estimate 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 for the quarter was up 109.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Equities research analysts anticipate that Lumentum Holdings Inc. will post 19.78 EPS for the current year.

Institutional Investors Weigh In On Lumentum

Several large investors have recently made changes to their positions in the company. Hilton Head Capital Partners LLC bought a new position in Lumentum during the first quarter valued at approximately $25,000. Sachetta LLC raised its holdings in shares of Lumentum by 118.8% during the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock worth $25,000 after acquiring an additional 19 shares in the last quarter. Truvestments Capital LLC boosted its position in shares of Lumentum by 300.0% during the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock valued at $28,000 after acquiring an additional 57 shares during the last quarter. Triumph Capital Management purchased a new position in shares of Lumentum in the fourth quarter valued at $30,000. Finally, Danske Bank A S purchased a new position in shares of Lumentum in the third quarter valued at $33,000. 94.05% of the stock is owned by institutional investors.

About Lumentum

Lumentum Holdings Inc (NASDAQ: LITE) designs and manufactures optical and photonic products used to transmit, process and control light. Its portfolio includes optical components, modules, subsystems, lasers and photonic integrated circuits that support communications networks, data centers, cloud infrastructure and industrial applications.

The company also supplies technologies for consumer electronics and 3D sensing, including laser-based products used in applications such as depth sensing and facial recognition.