Lumentum (NASDAQ:LITE) Trading Up 15.1% – Should You Buy?

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price traded up 15.1% during mid-day trading on Thursday . The company traded as high as $698.28 and last traded at $693.24. 5,485,023 shares changed hands during trading, a decline of 5% from the average daily volume of 5,757,249 shares. The stock had previously closed at $602.35.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the stock. BNP Paribas Exane upped their price objective on shares of Lumentum from $1,040.00 to $1,300.00 in a report on Wednesday, May 6th. TD Cowen decreased their price objective on Lumentum from $995.00 to $800.00 and set a “hold” rating for the company in a report on Monday, July 13th. Barclays lifted their price target on shares of Lumentum from $750.00 to $1,000.00 and gave the company an “equal weight” rating in a research report on Wednesday, May 6th. Raymond James Financial reaffirmed an “outperform” rating and issued a $1,014.00 price objective on shares of Lumentum in a research note on Wednesday, May 6th. Finally, Susquehanna raised their price target on shares of Lumentum from $550.00 to $1,100.00 and gave the company a “positive” rating in a research report on Monday, April 20th. Fourteen analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $1,012.67.

Lumentum Trading Up 3.0%

The company has a market capitalization of $55.54 billion, a P/E ratio of 132.21 and a beta of 1.48. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97. The firm has a fifty day moving average price of $821.07 and a 200-day moving average price of $736.55.

Lumentum (NASDAQ:LITE) last issued its quarterly 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. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The company had revenue of $808.40 million during the quarter, compared to the consensus estimate of $810.21 million. During the same period last year, the business posted $0.57 earnings per share. Lumentum’s revenue was up 90.1% on a year-over-year basis. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, equities research analysts anticipate that Lumentum Holdings Inc. will post 6.42 earnings per share for the current year.

Insider Activity

In other news, Director Isaac Hosojiro Harris sold 1,416 shares of Lumentum stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $1,000.08, for a total transaction of $1,416,113.28. Following the sale, the director directly owned 6,984 shares in the company, valued at $6,984,558.72. The trade was a 16.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Jae Kim sold 1,422 shares of the business’s stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $953.95, for a total transaction of $1,356,516.90. Following the completion of the transaction, the senior vice president directly owned 32,333 shares in the company, valued at $30,844,065.35. This trade represents a 4.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. Over the last quarter, insiders sold 41,260 shares of company stock worth $38,859,220. 0.43% of the stock is owned by insiders.

Institutional Trading of Lumentum

Hedge funds have recently added to or reduced their stakes in the stock. Hilton Head Capital Partners LLC bought a new position in shares of Lumentum during the 1st quarter valued at approximately $25,000. Sachetta LLC raised its holdings in shares of 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 during the period. V Square Quantitative Management LLC bought a new stake in shares of Lumentum in the 4th quarter worth approximately $28,000. Truvestments Capital LLC lifted its stake in Lumentum by 300.0% in the fourth 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 purchased a new position in Lumentum in the fourth quarter valued at approximately $30,000. Institutional investors 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.