Lumentum (NASDAQ:LITE) Shares Gap Up – Should You Buy?

Shares of Lumentum Holdings Inc. (NASDAQ:LITE) gapped up prior to trading on Wednesday . The stock had previously closed at $356.83, but opened at $373.60. Lumentum shares last traded at $373.1950, with a volume of 1,565,229 shares trading hands.

Analyst Ratings Changes

A number of brokerages have commented on LITE. Northland Securities set a $350.00 target price on shares of Lumentum in a research note on Wednesday, December 3rd. Rosenblatt Securities raised their target price on Lumentum to $380.00 and gave the company a “buy” rating in a report on Thursday, December 4th. Zacks Research upgraded shares of Lumentum from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, December 2nd. B. Riley boosted their price objective on Lumentum from $83.00 to $147.00 and gave the stock a “neutral” rating in a research report on Wednesday, November 5th. Finally, Mizuho set a $455.00 target price on shares of Lumentum in a research note on Friday, January 9th. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $241.75.

Lumentum Price Performance

The company has a fifty day simple moving average of $331.58 and a two-hundred day simple moving average of $211.02. The company has a market cap of $24.99 billion, a price-to-earnings ratio of 238.62 and a beta of 1.51. The company has a quick ratio of 1.02, a current ratio of 1.37 and a debt-to-equity ratio of 2.77.

Lumentum (NASDAQ:LITE) last announced its quarterly earnings data on Tuesday, November 4th. The technology company reported $1.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.03 by $0.07. The business had revenue of $533.80 million for the quarter, compared to the consensus estimate of $525.10 million. Lumentum had a net margin of 6.11% and a return on equity of 4.62%. The company’s quarterly revenue was up 58.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.18 earnings per share. Lumentum has set its Q2 2026 guidance at 1.300-1.500 EPS. On average, equities research analysts anticipate that Lumentum Holdings Inc. will post 0.03 earnings per share for the current fiscal year.

Insider Buying and Selling at Lumentum

In other news, Director Julia Suzanne Johnson sold 10,000 shares of Lumentum stock in a transaction that occurred on Monday, November 10th. The stock was sold at an average price of $270.39, for a total value of $2,703,900.00. Following the completion of the transaction, the director owned 12,037 shares in the company, valued at approximately $3,254,684.43. This trade represents a 45.38% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Matthew Joseph Sepe sold 4,232 shares of the firm’s stock in a transaction dated Friday, November 7th. The stock was sold at an average price of $239.63, for a total transaction of $1,014,114.16. Following the completion of the transaction, the chief accounting officer directly owned 43,544 shares in the company, valued at $10,434,448.72. This represents a 8.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 28,612 shares of company stock valued at $7,317,398. 0.43% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. EverSource Wealth Advisors LLC lifted its position in Lumentum by 363.9% in the third quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company’s stock worth $27,000 after purchasing an additional 131 shares during the period. Danske Bank A S acquired a new position in Lumentum in the 3rd quarter worth approximately $33,000. Chesapeake Asset Management LLC acquired a new position in Lumentum during the fourth quarter valued at $37,000. FNY Investment Advisers LLC purchased a new stake in Lumentum in the 2nd quarter worth about $38,000. Finally, MAI Capital Management increased its stake in shares of Lumentum by 27.0% in the second quarter. MAI Capital Management now owns 452 shares of the technology company’s stock worth $43,000 after acquiring an additional 96 shares during the last quarter. Institutional investors 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.