Lumentum (NASDAQ:LITE) Trading Down 9.9% – Time to Sell?

Lumentum Holdings Inc. (NASDAQ:LITE) was down 9.9% during trading on Monday . The stock traded as low as $833.70 and last traded at $835.03. Approximately 4,887,950 shares changed hands during mid-day trading, a decline of 12% from the average session volume of 5,569,411 shares. The stock had previously closed at $927.03.

Wall Street Analyst Weigh In

Several research firms have issued reports on LITE. Northland Securities boosted their price objective on shares of Lumentum from $1,000.00 to $1,200.00 and gave the stock an “outperform” rating in a research note on Wednesday, June 3rd. Raymond James Financial reissued an “outperform” rating and issued a $1,036.00 target price on shares of Lumentum in a research note on Wednesday, August 12th. Evercore assumed coverage on shares of Lumentum in a report on Monday, August 31st. They set an “outperform” rating and a $1,100.00 target price on the stock. Mizuho upped their price target on shares of Lumentum from $1,100.00 to $1,140.00 and gave the stock an “outperform” rating in a research report on Wednesday, August 12th. Finally, UBS Group set a $820.00 price target on shares of Lumentum in a research report on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Lumentum presently has a consensus rating of “Moderate Buy” and a consensus price target of $1,053.83.

Lumentum Price Performance

The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.40 and a current ratio of 1.68. The business’s fifty day simple moving average is $829.50 and its 200 day simple moving average is $828.36. The stock has a market cap of $74.90 billion, a price-to-earnings ratio of -10.16 and a beta of 1.53.

Lumentum (NASDAQ:LITE) last announced its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.97 by $0.26. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%.The business had revenue of $1.01 billion for the quarter, compared to analyst estimates of $987.70 million. During the same period in the previous year, the company earned $0.88 earnings per share. The company’s revenue for the quarter was up 109.3% compared to the same quarter last year. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Research analysts predict that Lumentum Holdings Inc. will post 19.78 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Vincent Retort sold 38,663 shares of Lumentum stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $852.59, for a total value of $32,963,687.17. Following the completion of the sale, the insider owned 78,440 shares in the company, valued at approximately $66,877,159.60. The trade was a 33.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 1,500 shares of the stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $827.82, for a total transaction of $1,241,730.00. Following the transaction, the insider owned 100,434 shares in the company, valued at $83,141,273.88. This trade represents a 1.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. In the last quarter, insiders sold 66,147 shares of company stock valued at $56,741,571. Company insiders own 0.43% of the company’s stock.

Hedge Funds Weigh In On Lumentum

Large investors have recently modified their holdings of the stock. Hilton Head Capital Partners LLC bought a new stake in Lumentum in the first quarter valued at about $25,000. Sachetta LLC grew its position 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 acquiring an additional 19 shares in the last quarter. Harbour Investments Inc. grew its position in shares of Lumentum by 675.0% in the 4th quarter. Harbour Investments Inc. now owns 93 shares of the technology company’s stock worth $34,000 after acquiring an additional 81 shares in the last quarter. Meeder Asset Management Inc. bought a new stake in shares of Lumentum in the 2nd quarter valued at approximately $40,000. Finally, Keating Financial Advisory Services Inc. bought a new stake in shares of Lumentum in the 2nd quarter valued at approximately $41,000. Institutional investors own 94.05% of the company’s stock.

About Lumentum

Lumentum Holdings Inc (NASDAQ: LITE) designs and manufactures optical and photonic products used to transmit, process and control light. Its portfolio includes optical components, modules, subsystems, lasers and photonic integrated circuits that support communications networks, data centers, cloud infrastructure and industrial applications.

The company also supplies technologies for consumer electronics and 3D sensing, including laser-based products used in applications such as depth sensing and facial recognition.