Lumentum (NASDAQ:LITE) Shares Gap Up – Here’s What Happened

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price gapped up prior to trading on Friday . The stock had previously closed at $693.24, but opened at $748.00. Lumentum shares last traded at $709.3010, with a volume of 1,473,327 shares changing hands.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on LITE. UBS Group raised their price target on Lumentum from $455.00 to $960.00 and gave the company a “neutral” rating in a research note on Wednesday, May 6th. Citigroup reiterated a “buy” rating on shares of Lumentum in a report on Thursday, July 16th. Stifel Nicolaus raised their target price on Lumentum from $800.00 to $1,100.00 and gave the stock a “buy” rating in a research report on Tuesday, May 5th. Raymond James Financial reiterated an “outperform” rating and issued a $1,014.00 price target on shares of Lumentum in a research note on Wednesday, May 6th. Finally, Craig Hallum raised their price objective on shares of Lumentum from $900.00 to $1,150.00 in a report on Wednesday, May 6th. Fourteen research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat.com, Lumentum currently has an average rating of “Moderate Buy” and a consensus target price of $1,012.67.

Lumentum Stock Performance

The company has a market cap of $55.67 billion, a PE ratio of 132.81 and a beta of 1.48. The stock has a 50 day simple moving average of $825.72 and a two-hundred day simple moving average of $736.71. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97.

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

Insider Transactions at Lumentum

In other Lumentum news, Director Brian Lillie sold 11,951 shares of Lumentum stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $981.64, for a total value of $11,731,579.64. Following the transaction, the director directly owned 13,959 shares in the company, valued at approximately $13,702,712.76. This trade represents a 46.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 3,210 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $953.95, for a total value of $3,062,179.50. Following the completion of the transaction, the insider directly owned 81,488 shares in the company, valued at approximately $77,735,477.60. The trade was a 3.79% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. Insiders have sold a total of 41,260 shares of company stock worth $38,859,220 over the last three months. 0.43% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Lumentum

Hedge funds and other institutional investors have recently bought and sold shares of the company. Arrowstreet Capital Limited Partnership raised its position in Lumentum by 8,579.2% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company’s stock worth $254,350,000 after buying an additional 1,545,199 shares during the last quarter. Norges Bank acquired a new position in shares of Lumentum during the fourth quarter worth about $474,495,000. Value Aligned Research Advisors LLC purchased a new position in Lumentum during the fourth quarter worth about $432,062,000. Situational Awareness LP raised its holdings in Lumentum by 210.9% during the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock worth $478,577,000 after purchasing an additional 880,800 shares in the last quarter. Finally, Aspex Management HK Ltd acquired a new stake in Lumentum in the fourth quarter valued at about $251,363,000. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

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.