Lumentum (NASDAQ:LITE) Trading 8.1% Higher – Should You Buy?

Shares of Lumentum Holdings Inc. (NASDAQ:LITE) rose 8.1% during trading on Thursday . The company traded as high as $827.56 and last traded at $826.88. Approximately 7,825,034 shares traded hands during mid-day trading, an increase of 30% from the average daily volume of 6,015,555 shares. The stock had previously closed at $764.65.

Analyst Ratings Changes

A number of analysts have recently weighed in on the company. Barclays increased their price target on Lumentum to $750.00 and gave the stock an “equal weight” rating in a research report on Tuesday, March 3rd. Bank of America upped their price objective on Lumentum to $520.00 and gave the stock a “neutral” rating in a research note on Wednesday, February 4th. JPMorgan Chase & Co. increased their target price on Lumentum to $565.00 and gave the stock an “overweight” rating in a research report on Wednesday, February 4th. Northland Securities set a $350.00 target price on Lumentum in a research note on Wednesday, December 3rd. Finally, Rosenblatt Securities reissued a “buy” rating and set a $900.00 price target on shares of Lumentum in a report on Wednesday, March 18th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Lumentum has a consensus rating of “Moderate Buy” and a consensus target price of $575.06.

Lumentum Stock Performance

The company has a quick ratio of 0.45, a current ratio of 0.61 and a debt-to-equity ratio of 0.06. The company has a 50-day moving average price of $603.71 and a 200-day moving average price of $382.13. The firm has a market capitalization of $59.04 billion, a price-to-earnings ratio of 253.64 and a beta of 1.38.

Lumentum (NASDAQ:LITE) last posted its earnings results on Tuesday, February 3rd. The technology company reported $1.67 EPS for the quarter, beating the consensus estimate of $1.41 by $0.26. The firm had revenue of $665.50 million for the quarter, compared to analysts’ expectations of $646.74 million. Lumentum had a return on equity of 17.27% and a net margin of 11.95%.The firm’s revenue was up 65.5% compared to the same quarter last year. During the same period last year, the firm earned $0.42 EPS. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. As a group, equities research analysts forecast that Lumentum Holdings Inc. will post 0.03 earnings per share for the current year.

Insider Activity at Lumentum

In related news, CFO Wajid Ali sold 5,302 shares of Lumentum stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $691.13, for a total transaction of $3,664,371.26. Following the sale, the chief financial officer directly owned 66,287 shares in the company, valued at $45,812,934.31. The trade was a 7.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Yuen Wupen sold 3,157 shares of the stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $538.00, for a total transaction of $1,698,466.00. Following the completion of the transaction, the insider owned 88,439 shares of the company’s stock, valued at $47,580,182. This represents a 3.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 65,775 shares of company stock valued at $38,851,343 in the last ninety days. Company insiders own 0.43% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Rockefeller Capital Management L.P. raised its holdings in Lumentum by 123.3% during the fourth quarter. Rockefeller Capital Management L.P. now owns 4,623 shares of the technology company’s stock worth $1,704,000 after purchasing an additional 2,553 shares in the last quarter. Hsbc Holdings PLC lifted its position in Lumentum by 6,239.0% in the fourth quarter. Hsbc Holdings PLC now owns 194,163 shares of the technology company’s stock worth $71,724,000 after purchasing an additional 191,100 shares during the period. OCONNOR A Distinct Business Unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new position in Lumentum during the 4th quarter valued at $1,136,000. Caitong International Asset Management Co. Ltd increased its position in shares of Lumentum by 46,666.7% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 8,418 shares of the technology company’s stock valued at $3,103,000 after purchasing an additional 8,400 shares during the period. Finally, Reflection Asset Management acquired a new position in shares of Lumentum during the 4th quarter valued at $59,000. 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.