Lumentum (NASDAQ:LITE) Shares Gap Up – What’s Next?

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price gapped up before the market opened on Monday . The stock had previously closed at $732.82, but opened at $764.13. Lumentum shares last traded at $793.6880, with a volume of 935,286 shares.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on LITE shares. Stifel Nicolaus boosted 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. Mizuho set a $1,100.00 price objective on shares of Lumentum in a research note on Wednesday, May 6th. Citigroup reaffirmed a “buy” rating on shares of Lumentum in a research note on Thursday. Jefferies Financial Group reiterated a “buy” rating and issued a $1,200.00 target price on shares of Lumentum in a report on Wednesday, May 6th. Finally, Needham & Company LLC reissued a “buy” rating and set a $1,040.00 target price on shares of Lumentum in a research note on Tuesday, June 9th. Fourteen research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $1,012.67.

Lumentum Stock Up 8.0%

The company has a market capitalization of $61.56 billion, a price-to-earnings ratio of 145.82 and a beta of 1.48. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01. The business has a 50-day moving average price of $865.06 and a 200-day moving average price of $713.14.

Lumentum (NASDAQ:LITE) last released its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, beating analysts’ consensus estimates of $2.27 by $0.10. The business had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.21 million. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.Lumentum’s revenue for the quarter was up 90.1% on a year-over-year basis. During the same quarter last year, the company posted $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, equities analysts anticipate that Lumentum Holdings Inc. will post 6.42 earnings per share for the current fiscal year.

Insider Activity at Lumentum

In other news, Director Isaac Hosojiro Harris sold 1,416 shares of Lumentum stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $1,000.08, for a total value of $1,416,113.28. Following the transaction, the director directly owned 6,984 shares of the company’s stock, valued at $6,984,558.72. This trade represents a 16.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ian Small sold 4,954 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $868.07, for a total transaction of $4,300,418.78. Following the sale, the director owned 21,008 shares in the company, valued at $18,236,414.56. This represents a 19.08% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 41,260 shares of company stock valued at $38,859,220. Corporate insiders own 0.43% of the company’s stock.

Hedge Funds Weigh In On Lumentum

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Nomura Asset Management Co. Ltd. lifted its holdings in Lumentum by 45.0% in the 4th quarter. Nomura Asset Management Co. Ltd. now owns 369,804 shares of the technology company’s stock worth $136,306,000 after purchasing an additional 114,714 shares during the last quarter. Andar Capital Management HK Ltd acquired a new position in Lumentum during the fourth quarter valued at approximately $4,325,000. Whittier Trust Co. grew its holdings in Lumentum by 21,806.5% during the first quarter. Whittier Trust Co. now owns 74,044 shares of the technology company’s stock valued at $57,183,000 after purchasing an additional 73,706 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new position in shares of Lumentum in the fourth quarter valued at approximately $6,755,000. Finally, Maxi Investments CY Ltd bought a new position in shares of Lumentum in the fourth quarter valued at approximately $2,212,000. 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.