Lumentum (NASDAQ:LITE) Trading Down 5% – Time to Sell?

Shares of Lumentum Holdings Inc. (NASDAQ:LITE) traded down 5% on Friday . The company traded as low as $774.30 and last traded at $818.73. Approximately 9,028,476 shares changed hands during mid-day trading, an increase of 50% from the average session volume of 6,012,898 shares. The stock had previously closed at $861.97.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on LITE shares. Barclays lifted their price objective on shares of Lumentum from $750.00 to $1,000.00 and gave the company an “equal weight” rating in a research report on Wednesday, May 6th. Needham & Company LLC restated a “buy” rating and issued a $1,040.00 target price on shares of Lumentum in a research report on Tuesday, June 9th. Craig Hallum raised their price target on shares of Lumentum from $900.00 to $1,150.00 in a research note on Wednesday, May 6th. TD Cowen lifted their price target on Lumentum from $875.00 to $995.00 and gave the company a “hold” rating in a report on Wednesday, May 6th. Finally, BNP Paribas Exane boosted their price objective on Lumentum from $1,040.00 to $1,300.00 in a research report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $1,021.95.

Lumentum Stock Performance

The stock has a market cap of $63.70 billion, a P/E ratio of 151.62 and a beta of 1.47. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97. The company has a fifty day moving average of $901.14 and a 200 day moving average of $667.33.

Lumentum (NASDAQ:LITE) last issued its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.27 by $0.10. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The firm had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.21 million. During the same period last year, the company posted $0.57 EPS. The firm’s quarterly revenue was up 90.1% on a year-over-year basis. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, equities analysts predict that Lumentum Holdings Inc. will post 6.36 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Vincent Retort sold 3,183 shares of Lumentum stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $953.95, for a total transaction of $3,036,422.85. Following the transaction, the insider directly owned 89,563 shares of the company’s stock, valued at $85,438,623.85. The trade was a 3.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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, Director Ian Small sold 4,954 shares of the business’s stock in a transaction dated 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 sale, the director owned 21,008 shares in the company, valued at approximately $18,236,414.56. This trade represents a 19.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 41,260 shares of company stock valued at $38,859,220. 0.43% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Lumentum

Several hedge funds have recently made changes to their positions in LITE. Hilton Head Capital Partners LLC bought a new stake in shares of Lumentum in the 1st quarter worth approximately $25,000. Sachetta LLC boosted its holdings in Lumentum by 118.8% during the first quarter. Sachetta LLC now owns 35 shares of the technology company’s stock worth $25,000 after buying an additional 19 shares in the last quarter. EverSource Wealth Advisors LLC boosted its holdings in Lumentum by 363.9% during the third quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company’s stock worth $27,000 after buying an additional 131 shares in the last quarter. V Square Quantitative Management LLC acquired a new position in Lumentum in the fourth quarter worth approximately $28,000. Finally, Truvestments Capital LLC grew its position in Lumentum by 300.0% in the fourth quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock worth $28,000 after buying an additional 57 shares during the last quarter. 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.