Lumentum (NASDAQ:LITE) Shares Gap Up – Still a Buy?

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price gapped up before the market opened on Monday . The stock had previously closed at $890.17, but opened at $931.05. Lumentum shares last traded at $869.5290, with a volume of 1,419,093 shares changing hands.

Wall Street Analysts Forecast Growth

LITE has been the topic of several research analyst reports. Zacks Research downgraded Lumentum from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 6th. TD Cowen cut their target price on Lumentum from $995.00 to $800.00 and set a “hold” rating for the company in a research report on Monday, July 13th. Citic Securities lifted their target price on Lumentum from $620.00 to $1,186.00 in a research note on Monday, May 11th. Needham & Company LLC reissued a “buy” rating and issued a $1,040.00 price target on shares of Lumentum in a report on Tuesday, June 9th. Finally, Barclays upped their price target on Lumentum from $750.00 to $1,000.00 and gave the stock an “equal weight” rating in a research note on Wednesday, May 6th. Fourteen analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $1,012.67.

Lumentum Stock Performance

The firm’s 50 day simple moving average is $815.23 and its 200 day simple moving average is $756.94. The firm has a market cap of $65.21 billion, a PE ratio of 155.94 and a beta of 1.50. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01.

Insider Transactions at Lumentum

In related news, Director Ian Small sold 4,954 shares of the stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $868.07, for a total transaction of $4,300,418.78. Following the completion of the transaction, the director directly owned 21,008 shares of the company’s stock, valued at approximately $18,236,414.56. This represents a 19.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Isaac Hosojiro Harris sold 1,416 shares of the firm’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $1,000.08, for a total value of $1,416,113.28. Following the transaction, the director owned 6,984 shares of the company’s stock, valued at $6,984,558.72. This represents a 16.86% 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. In the last ninety days, insiders sold 23,827 shares of company stock valued at $22,051,069. 0.43% of the stock is owned by insiders.

Institutional Trading of Lumentum

Several hedge funds have recently modified their holdings of the company. Hilton Head Capital Partners LLC bought a new stake in Lumentum in the first quarter worth $25,000. Sachetta LLC lifted its position in Lumentum by 118.8% during the first quarter. Sachetta LLC now owns 35 shares of the technology company’s stock valued at $25,000 after purchasing an additional 19 shares during the last quarter. Meeder Asset Management Inc. bought a new position in Lumentum during the second quarter valued at $40,000. Mowery & Schoenfeld Wealth Management LLC bought a new position in Lumentum during the second quarter valued at $51,000. Finally, Wiser Advisor Group LLC grew its stake in shares of Lumentum by 6,000.0% in the 1st quarter. Wiser Advisor Group LLC now owns 61 shares of the technology company’s stock worth $43,000 after buying an additional 60 shares in the last quarter. 94.05% of the stock is owned by hedge funds and other institutional investors.

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.