Lumentum (NASDAQ:LITE) Trading 6.2% Higher – Should You Buy?

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price traded up 6.2% during trading on Thursday . The stock traded as high as $881.88 and last traded at $879.28. 4,193,569 shares traded hands during mid-day trading, a decline of 27% from the average session volume of 5,727,942 shares. The stock had previously closed at $827.60.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. Citigroup restated a “buy” rating on shares of Lumentum in a research note on Wednesday, August 12th. B. Riley Financial reiterated a “buy” rating on shares of Lumentum in a research note on Friday, May 1st. Craig Hallum increased their price target on shares of Lumentum from $900.00 to $1,150.00 in a report on Wednesday, May 6th. Bank of America cut their price objective on shares of Lumentum from $1,100.00 to $1,000.00 and set a “neutral” rating for the company in a research report on Wednesday, August 12th. Finally, Weiss Ratings cut Lumentum from a “hold (c)” rating to a “hold (c-)” rating in a report on Wednesday, August 5th. Thirteen equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $1,044.67.

Lumentum Stock Up 6.2%

The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01. The company has a market cap of $78.87 billion, a price-to-earnings ratio of -10.70 and a beta of 1.50. The stock has a fifty day moving average price of $811.06 and a two-hundred day moving average price of $786.24.

Lumentum (NASDAQ:LITE) last released its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, beating the consensus estimate of $2.97 by $0.26. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The business had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $987.70 million. During the same period in the prior year, the company posted $0.88 earnings per share. Lumentum’s revenue was up 109.3% compared to the same quarter last year. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, sell-side analysts expect that Lumentum Holdings Inc. will post 16.97 EPS for the current year.

Insider Buying and Selling at Lumentum

In other news, SVP Jae Kim sold 1,366 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $909.43, for a total transaction of $1,242,281.38. Following the transaction, the senior vice president directly owned 45,973 shares of the company’s stock, valued at approximately $41,809,225.39. This trade represents a 2.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Vincent Retort sold 3,183 shares of Lumentum stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $909.43, for a total transaction of $2,894,715.69. Following the completion of the sale, the insider owned 114,495 shares of the company’s stock, valued at approximately $104,125,187.85. The trade was a 2.70% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 9,965 shares of company stock valued at $8,993,110 in the last quarter. Company insiders own 0.43% of the company’s stock.

Institutional Investors Weigh In On Lumentum

Large investors have recently added to or reduced their stakes in the stock. Hilltop National Bank raised its holdings in Lumentum by 26.8% in the 2nd quarter. Hilltop National Bank now owns 71 shares of the technology company’s stock valued at $61,000 after acquiring an additional 15 shares in the last quarter. Sachetta LLC lifted its position in shares of Lumentum by 118.8% during the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock valued at $25,000 after acquiring an additional 19 shares during the period. Toth Financial Advisory Corp grew its holdings in shares of Lumentum by 127.3% during the 2nd quarter. Toth Financial Advisory Corp now owns 50 shares of the technology company’s stock worth $43,000 after purchasing an additional 28 shares in the last quarter. Versant Capital Management Inc grew its holdings in shares of Lumentum by 39.5% during the 2nd quarter. Versant Capital Management Inc now owns 106 shares of the technology company’s stock worth $91,000 after purchasing an additional 30 shares in the last quarter. Finally, Hilton Head Capital Partners LLC bought a new position in shares of Lumentum in the first quarter worth $25,000. Institutional investors and hedge funds 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.