Lumentum (NASDAQ:LITE) Stock Price Up 10.7% – Here’s What Happened

Lumentum Holdings Inc. (NASDAQ:LITE) shares shot up 10.7% on Monday. The stock traded as high as $616.66 and last traded at $596.16. 5,921,845 shares traded hands during mid-day trading, an increase of 6% from the average daily volume of 5,592,743 shares. The stock had previously closed at $538.59.

Analyst Ratings Changes

A number of research firms have weighed in on LITE. Stifel Nicolaus set a $806.00 target price on Lumentum in a report on Monday, November 2nd. Citigroup upped their target price on Lumentum from $1,200.00 to $1,400.00 and gave the stock a “buy” rating in a research note on Monday, September 28th. Susquehanna lowered their price target on Lumentum from $1,100.00 to $950.00 and set a “positive” rating on the stock in a report on Tuesday, November 3rd. Weiss Ratings downgraded shares of Lumentum from a “hold (c-)” rating to a “sell (d-)” rating in a research note on Wednesday, August 19th. Finally, Wolfe Research reaffirmed an “outperform” rating on shares of Lumentum in a research note on Friday, August 21st. Two analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $1,081.61.

Lumentum Trading Up 10.7%

The company has a quick ratio of 1.27, a current ratio of 1.61 and a debt-to-equity ratio of 0.01. The firm’s 50-day simple moving average is $894.13 and its 200-day simple moving average is $801.60. The firm has a market capitalization of $54.07 billion, a PE ratio of -7.57 and a beta of 1.64.

Lumentum (NASDAQ:LITE) last announced its quarterly earnings results on Monday, November 2nd. The technology company reported $4.57 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.22 by $0.35. The business had revenue of $1.26 billion for the quarter, compared to analyst estimates of $1.26 billion. Lumentum had a negative net margin of 175.82% and a positive return on equity of 28.85%. The company’s revenue was up 136.5% on a year-over-year basis. During the same quarter last year, the firm earned $1.10 EPS. Equities analysts expect that Lumentum Holdings Inc. will post 19.93 earnings per share for the current year.

Insider Buying and Selling at Lumentum

In other news, CEO Michael Hurlston sold 548 shares of the company’s stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $958.66, for a total value of $525,345.68. Following the sale, the chief executive officer directly owned 186,951 shares of the company’s stock, valued at $179,222,445.66. This represents a 0.29% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Wajid Ali sold 24,542 shares of Lumentum stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $1,048.50, for a total transaction of $25,732,287.00. Following the transaction, the chief financial officer directly owned 75,074 shares of the company’s stock, valued at approximately $78,715,089. This trade represents a 24.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 94,496 shares of company stock valued at $85,978,498. Company insiders own 0.28% of the company’s stock.

Hedge Funds Weigh In On Lumentum

Several institutional investors have recently made changes to their positions in the business. Jupiter Topco LLC purchased a new position in Lumentum during the second quarter valued at $1,621,396,000. Amundi increased its stake in Lumentum by 188.7% during the second quarter. Amundi now owns 658,427 shares of the technology company’s stock worth $564,970,000 after acquiring an additional 430,355 shares during the last quarter. WT Asset Management Ltd bought a new position in Lumentum during the second quarter valued at $494,688,000. Janus Henderson Group PLC grew its stake 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 buying an additional 351,676 shares during the last quarter. Finally, Legal & General Group Plc purchased a new position in Lumentum in the 2nd quarter worth about $376,539,000. Institutional investors own 94.05% of the company’s stock.

Lumentum Company Profile

Lumentum Holdings Inc develops and manufactures optical and photonic products used in communications networks and industrial applications. Its offerings include optical components, modules and lasers that help transmit and process data across telecommunications and data center networks.

The company also supplies lasers and related technologies for industrial uses, including precision manufacturing and semiconductor production. Its products serve customers in markets around the world.

Lumentum became an independent public company in 2015 through a spin-off from JDSU, now Viavi Solutions.