Lumentum (NASDAQ:LITE) Stock Rating Upgraded by Zacks Research

Lumentum (NASDAQ:LITE) was upgraded by research analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a note issued to investors on Thursday,Zacks.com reports.

Other equities analysts have also issued research reports about the company. Morgan Stanley raised their target price on Lumentum from $900.00 to $1,000.00 and gave the stock an “equal weight” rating in a research note on Wednesday, August 12th. Weiss Ratings downgraded Lumentum from a “hold (c-)” rating to a “sell (d-)” rating in a research note on Wednesday. BNP Paribas Exane increased their price objective on Lumentum from $1,040.00 to $1,300.00 in a report on Wednesday, May 6th. Jefferies Financial Group restated a “buy” rating and issued a $1,200.00 price objective on shares of Lumentum in a research note on Wednesday, May 6th. Finally, Rosenblatt Securities reaffirmed a “buy” rating and set a $1,300.00 target price on shares of Lumentum in a report on Wednesday, August 12th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $1,044.67.

Lumentum Trading Down 1.4%

Shares of Lumentum stock opened at $866.71 on Thursday. The firm’s 50 day simple moving average is $809.76 and its two-hundred day simple moving average is $790.21. The firm has a market capitalization of $77.74 billion, a price-to-earnings ratio of -10.54 and a beta of 1.50. Lumentum has a 12-month low of $115.89 and a 12-month high of $1,085.68. The company has a current ratio of 1.68, a quick ratio of 1.40 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE) last posted its quarterly earnings data on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, topping the consensus estimate of $2.97 by $0.26. The business had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The business’s revenue for the quarter was up 109.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Analysts predict that Lumentum will post 19.76 EPS for the current year.

Insider Buying and Selling at Lumentum

In other Lumentum news, SVP Jae Kim sold 1,904 shares of the stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $827.82, for a total transaction of $1,576,169.28. Following the sale, the senior vice president directly owned 42,096 shares of the company’s stock, valued at approximately $34,847,910.72. This trade represents a 4.33% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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, insider Yuen Wupen sold 1,500 shares of Lumentum stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $827.82, for a total value of $1,241,730.00. Following the transaction, the insider owned 100,434 shares of the company’s stock, valued at $83,141,273.88. The trade was a 1.47% 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. Over the last ninety days, insiders have sold 16,352 shares of company stock valued at $14,315,562. Company insiders own 0.43% of the company’s stock.

Institutional Trading of Lumentum

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Jupiter Topco LLC acquired a new position in Lumentum in the second quarter valued at approximately $1,621,396,000. Arrowstreet Capital Limited Partnership grew its stake in shares of Lumentum by 18.7% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company’s stock worth $683,661,000 after purchasing an additional 291,591 shares during the period. Geode Capital Management LLC grew its stake in shares of Lumentum by 9.6% during the 4th quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company’s stock worth $521,563,000 after purchasing an additional 123,265 shares during the period. Situational Awareness LP increased its holdings in shares of Lumentum by 210.9% during the 4th quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock valued at $478,577,000 after purchasing an additional 880,800 shares in the last quarter. Finally, Norges Bank purchased a new position in shares of Lumentum during the 4th quarter valued at approximately $474,495,000. 94.05% of the stock is owned by institutional investors and hedge funds.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Northland Securities raised its Lumentum earnings forecasts substantially. The firm lifted its FY2027 EPS estimate to $19.81 from $14.97, with quarterly estimates now ranging from $3.81 in Q1 to $6.20 in Q4. Northland maintained an “Outperform” rating and a $1,200 price target, supporting the bullish case for continued earnings growth. Northland Securities analyst estimate report
• Positive Sentiment: Lumentum is being highlighted as an AI-infrastructure beneficiary. Analysts and financial publications point to rising demand for optical networking equipment as data centers expand to support artificial intelligence workloads. Lumentum is positioned across the optics and networking portions of that buildout. Beyond Chipmakers: 4 Stocks to Buy That Power AI Data Center Expansion
• Positive Sentiment: LITE was added to Zacks’ Rank #1 momentum-stock list. The designation may attract momentum-oriented investors and reinforces the stock’s strong recent performance. Best Momentum Stocks to Buy for August 21st
• Neutral Sentiment: A report on data-center construction emphasized the enormous fiber requirements of new AI facilities, a potential long-term demand driver for optical-component suppliers such as Lumentum. However, the article provided limited company-specific financial updates. A Single Meta Data Center Will Require “8 Million Miles of Fiber”
• Negative Sentiment: Valuation concerns could be limiting further upside. A Seeking Alpha analysis characterized Lumentum as increasingly expensive after its sharp rally. With the shares near their 52-week high and the company still reporting a negative net margin, some investors may be taking profits despite the favorable growth outlook. Lumentum: It’s Getting Expensive

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.