Lumentum (NASDAQ:LITE) Shares Up 3.8% After Analyst Upgrade

Lumentum Holdings Inc. (NASDAQ:LITE) shot up 3.8% during mid-day trading on Wednesday after Zacks Research upgraded the stock from a hold rating to a strong-buy rating. The company traded as high as $1,062.10 and last traded at $1,030.37. 4,367,263 shares traded hands during trading, a decline of 27% from the average session volume of 6,010,998 shares. The stock had previously closed at $992.37.

A number of other analysts have also recently issued reports on LITE. Citigroup raised their target price on shares of Lumentum from $800.00 to $1,100.00 and gave the stock a “buy” rating in a research note on Tuesday, April 21st. Jefferies Financial Group reaffirmed a “buy” rating and set a $1,200.00 price target on shares of Lumentum in a research report on Wednesday, May 6th. Bank of America raised their price target on shares of Lumentum to $520.00 and gave the stock a “neutral” rating in a research report on Wednesday, February 4th. Mizuho set a $1,100.00 price target on shares of Lumentum in a research report on Wednesday, May 6th. Finally, Stifel Nicolaus raised their price target on shares of Lumentum from $800.00 to $1,100.00 and gave the stock a “buy” rating in a research report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $1,012.43.

Insider Buying and Selling at Lumentum

In related news, Director Brian Lillie sold 11,951 shares of the firm’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $981.64, for a total transaction of $11,731,579.64. Following the transaction, the director directly owned 13,959 shares of the company’s stock, valued at approximately $13,702,712.76. This trade represents a 46.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ian Small sold 3,500 shares of the firm’s stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $911.17, for a total transaction of $3,189,095.00. Following the completion of the transaction, the director directly owned 25,962 shares in the company, valued at approximately $23,655,795.54. This represents a 11.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 29,333 shares of company stock valued at $24,049,017 in the last quarter. Company insiders own 0.43% of the company’s stock.

Lumentum News Roundup

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Zacks Research upgraded Lumentum (LITE) from hold to strong-buy, signaling improved earnings outlook and stronger near-term sentiment. Tickerreport.com
• Positive Sentiment: Investors are reacting to reports of surging AI optics demand, with Lumentum’s components business reportedly sold out through 2028 and the company planning to expand manufacturing capacity, which supports a higher valuation. Lumentum’s AI Optics Demand And NVIDIA Deal Reshape Valuation Debate
• Positive Sentiment: The stock also benefited from broader momentum-stock and analyst coverage that placed LITE on Zacks’ Rank #1 Strong Buy list, adding to bullish trading sentiment. Best Momentum Stocks to Buy for May 14th
• Positive Sentiment: Multiple articles highlighted accelerating growth in Lumentum’s components business, particularly around AI optics and hyperscale data-center demand, reinforcing expectations for continued revenue strength. Lumentum’s Components Business Accelerates: More Upside Ahead?
• Neutral Sentiment: Investor attention is also building around an upcoming May 18 event, but the articles provided do not specify a concrete new catalyst yet. Dear Lumentum stock fans, mark your calendars for May 18

Hedge Funds Weigh In On Lumentum

Hedge funds have recently bought and sold shares of the company. Hilton Head Capital Partners LLC bought a new stake in shares of Lumentum during the 1st quarter valued at approximately $25,000. Sachetta LLC grew its holdings 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 purchasing an additional 19 shares during the last quarter. Wiser Advisor Group LLC grew its holdings in shares of Lumentum by 6,000.0% during the 1st quarter. Wiser Advisor Group LLC now owns 61 shares of the technology company’s stock valued at $43,000 after purchasing an additional 60 shares during the last quarter. SJS Investment Consulting Inc. grew its holdings in shares of Lumentum by 687.5% during the 1st quarter. SJS Investment Consulting Inc. now owns 63 shares of the technology company’s stock valued at $44,000 after purchasing an additional 55 shares during the last quarter. Finally, Truvestments Capital LLC grew its holdings in shares of Lumentum by 300.0% during the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock valued at $28,000 after purchasing an additional 57 shares during the last quarter. 94.05% of the stock is owned by institutional investors.

Lumentum Stock Down 3.1%

The company has a market capitalization of $75.52 billion, a P/E ratio of 179.76 and a beta of 1.53. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14. The firm’s fifty day moving average is $804.16 and its 200-day moving average is $532.16.

Lumentum (NASDAQ:LITE) last posted its earnings results on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, topping the consensus estimate of $2.27 by $0.10. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The business had revenue of $808.40 million for the quarter, compared to the consensus estimate of $810.21 million. During the same period last year, the company earned $0.57 EPS. The firm’s revenue was up 90.1% compared to the same quarter last year. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, equities research analysts predict that Lumentum Holdings Inc. will post 6.49 EPS for the current year.

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.