TD Cowen Begins Coverage on Lumentum (NASDAQ:LITE)

Posted by Donna Armstrong on Mar 14th, 2026

Research analysts at TD Cowen began coverage on shares of Lumentum (NASDAQ:LITE – Get Free Report) in a research report issued to clients and investors on Thursday, MarketBeat Ratings reports. The brokerage set a “hold” rating and a $675.00 price target on the technology company’s stock. TD Cowen’s price target points to a potential upside of 8.43% from the stock’s current price.

Several other equities analysts have also issued reports on the stock. Citigroup boosted their target price on shares of Lumentum to $560.00 and gave the company a “buy” rating in a report on Thursday, February 5th. JPMorgan Chase & Co. lifted their price objective on Lumentum to $565.00 and gave the stock an “overweight” rating in a research report on Wednesday, February 4th. Zacks Research raised Lumentum from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, December 2nd. Weiss Ratings restated a “hold (c-)” rating on shares of Lumentum in a research report on Monday, December 29th. Finally, Stifel Nicolaus raised their target price on Lumentum to $800.00 and gave the stock a “buy” rating in a research note on Monday, March 2nd. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $550.38.

Check Out Our Latest Stock Report on LITE

Lumentum Stock Up 1.0%

Lumentum stock opened at $622.50 on Thursday. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.45 and a current ratio of 0.61. Lumentum has a 52-week low of $45.65 and a 52-week high of $783.80. The firm has a 50 day moving average price of $510.02 and a two-hundred day moving average price of $328.98. The firm has a market cap of $44.45 billion, a price-to-earnings ratio of 190.95 and a beta of 1.38.

Lumentum (NASDAQ:LITE – Get Free Report) last posted its quarterly earnings data on Tuesday, February 3rd. The technology company reported $1.67 EPS for the quarter, beating analysts’ consensus estimates of $1.41 by $0.26. Lumentum had a net margin of 11.95% and a return on equity of 17.27%. The company had revenue of $665.50 million for the quarter, compared to analyst estimates of $646.74 million. During the same period in the prior year, the firm posted $0.42 EPS. The company’s quarterly revenue was up 65.5% on a year-over-year basis. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. Equities analysts predict that Lumentum will post 0.03 EPS for the current year.

Insider Transactions at Lumentum

In related news, insider Yuen Wupen sold 3,157 shares of the company’s stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $538.00, for a total transaction of $1,698,466.00. Following the transaction, the insider directly owned 88,439 shares of the company’s stock, valued at approximately $47,580,182. This represents a 3.45% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Vincent Retort sold 3,441 shares of the stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $545.78, for a total value of $1,878,028.98. Following the completion of the transaction, the insider owned 95,975 shares in the company, valued at approximately $52,381,235.50. The trade was a 3.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 65,775 shares of company stock valued at $38,851,343. 0.43% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Lumentum

A number of institutional investors have recently modified their holdings of LITE. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Lumentum by 8,579.2% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company’s stock worth $254,350,000 after purchasing an additional 1,545,199 shares in the last quarter. Norges Bank bought a new stake in Lumentum during the 4th quarter valued at $474,495,000. Value Aligned Research Advisors LLC acquired a new position in Lumentum during the fourth quarter worth $432,062,000. Hood River Capital Management LLC raised its holdings in Lumentum by 82.1% during the second quarter. Hood River Capital Management LLC now owns 2,206,453 shares of the technology company’s stock worth $209,745,000 after buying an additional 994,551 shares during the last quarter. Finally, Situational Awareness LP lifted its stake in shares of Lumentum by 210.9% in the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock valued at $478,577,000 after buying an additional 880,800 shares in the last quarter. 94.05% of the stock is owned by institutional investors and hedge funds.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

Positive Sentiment: NVIDIA strategic deal and US$2.0B investment underpin a major growth runway for Lumentum’s AI optics business — supports revenue visibility, R&D and a new U.S. fab. Why Lumentum (LITE) Is Down 5.3% After NVIDIA’s US$2 Billion AI Optics Investment Deal
Positive Sentiment: CEO Michael Hurlston said Lumentum is “sold out really until the end of 2027,” signaling a heavy, multi-year backlog and strong demand for optical components. Lumentum CEO: sold out through end of 2027, no end in sight
Positive Sentiment: Analyst optimism: Barclays raised its price target (to $750) after the NVIDIA news and earnings beat, reflecting higher modeled upside for AI optics exposure. Lumentum Holdings (LITE) Sees Strong Analyst Optimism Following Earnings & NVIDIA Deal
Positive Sentiment: Multiple buy/recommendation write-ups and analyst coverage upgrades/new coverage are spotlighting Lumentum as a core AI-optics play. Lumentum Holdings (LITE): New Buy Recommendation for This Technology Giant
Positive Sentiment: Inclusion in the S&P 500 (effective March 23) creates a date-certain, index-driven buyer base that should increase demand from passive funds. Lumentum Joins the S&P 500 Soon: Buy the Dip Before the Index Funds Have To?
Neutral Sentiment: TD Cowen initiated coverage with a Hold rating and a $675 price target (modest upside vs. recent levels) — a balanced view that may temper short-term upside expectations. TD Cowen initiates coverage of Lumentum Holdings (LITE) with hold recommendation
Negative Sentiment: Short-term selloff/volatility after the NVIDIA announcement likely reflects investor concerns about the convertible preferred structure, potential dilution and profit-taking after a strong rally. A Look At Lumentum Holdings (LITE) Valuation After Nvidia Investment And S&P 500 Inclusion

About Lumentum

(Get Free Report)

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.