Lumentum (NASDAQ:LITE) Stock Price Up 3.8% – Still a Buy?

Lumentum Holdings Inc. (NASDAQ:LITE) shot up 3.8% during mid-day trading on Friday . The stock traded as high as $747.00 and last traded at $732.82. Approximately 4,920,708 shares were traded during trading, a decline of 16% from the average daily volume of 5,831,275 shares. The stock had previously closed at $706.23.

Key Stories Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Analysts highlighted Lumentum’s record laser-chip shipments, expanding indium phosphide capacity, and push into co-packaged optics (CPO), which could help it capture stronger demand from AI optical networks. Can Lumentum’s AI Laser Chip Demand Accelerate Revenue Growth?
• Positive Sentiment: Zacks upgraded Lumentum to Rank #2 (Buy), citing improved earnings estimates and growing confidence in the company’s outlook, which has added support to the stock. Lumentum (LITE) Upgraded to Buy: What Does It Mean for the Stock?
• Positive Sentiment: Coverage comparing LITE with Applied Digital argued that Lumentum’s stronger execution, AI-driven growth, and lower valuation make it an attractive AI infrastructure play. LITE vs. APLD: Which AI Infrastructure Stock Offers Better Growth?
• Neutral Sentiment: UBS reaffirmed its Hold rating on Lumentum, while Citi reportedly placed the stock on a 90-day catalyst watch, keeping attention on near-term developments. UBS Reaffirms Their Hold Rating on Lumentum Holdings (LITE) Lumentum in focus as Citi adds 90-day catalyst watch

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. UBS Group raised their price objective on shares of Lumentum from $455.00 to $960.00 and gave the stock a “neutral” rating in a report on Wednesday, May 6th. Loop Capital upped their target price on Lumentum from $900.00 to $1,400.00 and gave the stock a “buy” rating in a report on Tuesday, May 5th. JPMorgan Chase & Co. increased their target price on Lumentum from $950.00 to $1,130.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. Citigroup restated a “buy” rating on shares of Lumentum in a research note on Thursday. Finally, Raymond James Financial restated an “outperform” rating and set a $1,014.00 price target on shares of Lumentum in a research report on Wednesday, May 6th. Fourteen analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, Lumentum presently has an average rating of “Moderate Buy” and an average price target of $1,012.67.

Lumentum Stock Performance

The company has a market capitalization of $57.01 billion, a P/E ratio of 135.71 and a beta of 1.48. The company’s 50 day moving average is $868.47 and its 200-day moving average is $710.60. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE) last posted its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, topping the consensus estimate of $2.27 by $0.10. The business had revenue of $808.40 million for the quarter, compared to analyst estimates of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. Lumentum’s quarterly revenue was up 90.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. Equities analysts anticipate that Lumentum Holdings Inc. will post 6.4 EPS for the current fiscal year.

Insider Transactions at Lumentum

In other Lumentum news, CFO Wajid Ali sold 2,487 shares of Lumentum stock in a transaction on Monday, May 18th. The stock was sold at an average price of $953.95, for a total transaction of $2,372,473.65. Following the completion of the transaction, the chief financial officer owned 60,951 shares in the company, valued at approximately $58,144,206.45. The trade was a 3.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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 on Thursday, May 21st. The stock was sold at an average price of $868.07, for a total value of $4,300,418.78. Following the completion of the sale, the director directly owned 21,008 shares in the company, valued at $18,236,414.56. This trade represents a 19.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 41,260 shares of company stock worth $38,859,220. Company insiders own 0.43% of the company’s stock.

Hedge Funds Weigh In On Lumentum

Several institutional investors and hedge funds have recently modified their holdings of the stock. Hilton Head Capital Partners LLC purchased a new position in shares of Lumentum in the 1st quarter worth about $25,000. Sachetta LLC boosted its stake in Lumentum by 118.8% in the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock worth $25,000 after purchasing an additional 19 shares in the last quarter. V Square Quantitative Management LLC purchased a new stake in Lumentum during the 4th quarter valued at about $28,000. Truvestments Capital LLC grew its position in 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. Finally, Triumph Capital Management bought a new stake in Lumentum during the 4th quarter valued at about $30,000. 94.05% of the stock is currently owned by institutional investors.

Lumentum Company Profile

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.