Zacks Research Downgrades Lumentum (NASDAQ:LITE) to Hold

Lumentum (NASDAQ:LITE) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Monday,Zacks.com reports.

Several other equities research analysts have also recently issued reports on the company. Citigroup initiated coverage on Lumentum in a report on Friday, August 29th. They set a “buy” rating and a $165.00 price objective on the stock. Wall Street Zen cut Lumentum from a “buy” rating to a “hold” rating in a report on Saturday. Stifel Nicolaus raised their price objective on Lumentum from $100.00 to $132.00 and gave the stock a “buy” rating in a report on Wednesday, August 13th. KGI Securities initiated coverage on Lumentum in a report on Monday, August 18th. They set an “outperform” rating on the stock. Finally, Needham & Company LLC raised their price objective on Lumentum from $180.00 to $235.00 and gave the stock a “buy” rating in a report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $159.79.

Lumentum Stock Performance

LITE opened at $188.36 on Monday. The stock has a market cap of $13.36 billion, a P/E ratio of 818.96 and a beta of 1.48. The company has a debt-to-equity ratio of 2.26, a current ratio of 4.37 and a quick ratio of 3.18. The stock’s 50 day simple moving average is $163.44 and its 200 day simple moving average is $115.37. Lumentum has a 1-year low of $45.65 and a 1-year high of $214.50.

Lumentum (NASDAQ:LITE) last released its quarterly earnings results on Tuesday, November 4th. The technology company reported $1.10 earnings per share for the quarter, topping analysts’ consensus estimates of $1.03 by $0.07. Lumentum had a negative return on equity of 3.02% and a net margin of 1.57%.The business had revenue of $533.80 million for the quarter, compared to analysts’ expectations of $525.10 million. During the same quarter in the prior year, the firm posted $0.18 EPS. The company’s revenue was up 58.4% compared to the same quarter last year. Lumentum has set its Q2 2026 guidance at 1.300-1.500 EPS. As a group, equities analysts anticipate that Lumentum will post 0.03 EPS for the current fiscal year.

Insider Transactions at Lumentum

In related news, insider Yuen Wupen sold 3,281 shares of the business’s stock in a transaction dated Wednesday, August 27th. The stock was sold at an average price of $124.86, for a total value of $409,665.66. Following the completion of the sale, the insider directly owned 101,273 shares of the company’s stock, valued at $12,644,946.78. The trade was a 3.14% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Wajid Ali sold 2,526 shares of the business’s stock in a transaction dated Tuesday, August 26th. The shares were sold at an average price of $124.39, for a total value of $314,209.14. Following the completion of the sale, the chief financial officer directly owned 77,087 shares of the company’s stock, valued at approximately $9,588,851.93. This represents a 3.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 18,198 shares of company stock valued at $2,180,887 in the last three months. Corporate insiders own 0.43% of the company’s stock.

Institutional Trading of Lumentum

Several hedge funds and other institutional investors have recently bought and sold shares of LITE. Cambridge Investment Research Advisors Inc. bought a new stake in Lumentum in the first quarter valued at about $260,000. Teacher Retirement System of Texas acquired a new position in shares of Lumentum during the first quarter worth approximately $626,000. Principal Financial Group Inc. boosted its position in shares of Lumentum by 1.1% during the first quarter. Principal Financial Group Inc. now owns 159,154 shares of the technology company’s stock worth $9,922,000 after buying an additional 1,660 shares during the period. Envestnet Asset Management Inc. boosted its position in shares of Lumentum by 27.0% during the first quarter. Envestnet Asset Management Inc. now owns 12,837 shares of the technology company’s stock worth $800,000 after buying an additional 2,729 shares during the period. Finally, State of Michigan Retirement System boosted its position in shares of Lumentum by 1.8% during the first quarter. State of Michigan Retirement System now owns 16,528 shares of the technology company’s stock worth $1,030,000 after buying an additional 300 shares during the period. 94.05% of the stock is owned by institutional investors.

Lumentum Company Profile

Lumentum Holdings Inc manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables.