Lumentum (NASDAQ:LITE) Stock Falls 9.3% – What’s Next?

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price traded down 9.3% during mid-day trading on Wednesday. The company traded as low as $893.88 and last traded at $896.33. Approximately 5,653,501 shares changed hands during trading, an increase of 3% from the average session volume of 5,491,264 shares. The stock had previously closed at $987.99.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the stock. Needham & Company LLC reissued a “buy” rating and set a $1,040.00 target price on shares of Lumentum in a research note on Wednesday, August 12th. Citigroup upped their target price on shares of Lumentum from $1,200.00 to $1,400.00 and gave the company a “buy” rating in a research note on Monday, September 28th. Rosenblatt Securities restated a “buy” rating and issued a $1,300.00 target price on shares of Lumentum in a research note on Monday, October 5th. Sanford C. Bernstein started coverage on Lumentum in a research report on Wednesday, September 30th. They issued an “outperform” rating and a $1,220.00 price target on the stock. Finally, Stifel Nicolaus increased their price target on Lumentum from $1,100.00 to $1,232.00 and gave the stock a “buy” rating in a research report on Monday, October 5th. 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 stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $1,078.75.

Lumentum Stock Performance

The firm has a fifty day moving average price of $932.80 and a 200 day moving average price of $876.43. The firm has a market capitalization of $74.94 billion, a PE ratio of -10.05 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 (NASDAQ:LITE) last posted its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.97 by $0.26. The business had revenue of $1.01 billion for the quarter, compared to analyst estimates of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The firm’s revenue for the quarter was up 109.3% on a year-over-year basis. During the same quarter last year, the business posted $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Research analysts anticipate that Lumentum Holdings Inc. will post 19.79 earnings per share for the current fiscal year.

Insider Buying and Selling at Lumentum

In other news, CFO Wajid Ali sold 24,542 shares of the business’s stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $1,048.50, for a total transaction of $25,732,287.00. Following the sale, the chief financial officer directly owned 75,074 shares in the company, valued at approximately $78,715,089. The trade was a 24.64% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 307 shares of Lumentum stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $945.00, for a total value of $290,115.00. Following the completion of the sale, the insider owned 108,320 shares of the company’s stock, valued at approximately $102,362,400. The trade was a 0.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 94,496 shares of company stock valued at $85,978,498. 0.28% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Jupiter Topco LLC acquired a new stake in shares of Lumentum during the second quarter worth $1,621,396,000. Amundi boosted its stake in Lumentum by 188.7% during the 2nd 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 period. WT Asset Management Ltd acquired a new stake in Lumentum in the 2nd quarter valued at approximately $494,688,000. Janus Henderson Group PLC increased its holdings in shares of Lumentum by 163.2% during the first quarter. Janus Henderson Group PLC now owns 567,182 shares of the technology company’s stock valued at $398,590,000 after purchasing an additional 351,676 shares during the period. Finally, Legal & General Group Plc acquired a new position in Lumentum during the 2nd quarter valued at about $376,539,000. 94.05% of the stock is owned by institutional investors and hedge funds.

About Lumentum

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.