Lumentum (NASDAQ:LITE) Stock Price Down 5.8% After Insider Selling

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price dropped 5.8% during mid-day trading on Tuesday following insider selling activity. The stock traded as low as $937.64 and last traded at $992.37. Approximately 7,504,979 shares changed hands during mid-day trading, an increase of 24% from the average daily volume of 6,031,040 shares. The stock had previously closed at $1,053.09.

Specifically, SVP Jae Kim sold 1,933 shares of Lumentum stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $950.99, for a total transaction of $1,838,263.67. Following the completion of the transaction, the senior vice president directly owned 35,114 shares of the company’s stock, valued at $33,393,062.86. This trade represents a 5.22% decrease in their position. The sale 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, Director Brian Lillie sold 11,951 shares of Lumentum stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $981.64, for a total transaction of $11,731,579.64. Following the transaction, the director directly owned 13,959 shares of the company’s stock, valued at $13,702,712.76. This represents a 46.13% 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. In related news, Director Brian Lillie sold 49 shares of Lumentum stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $1,004.34, for a total transaction of $49,212.66. Following the completion of the transaction, the director directly owned 13,910 shares of the company’s stock, valued at $13,970,369.40. This trade represents a 0.35% decrease in their position. The sale 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.

Wall Street Analyst Weigh In

LITE has been the subject of several analyst reports. UBS Group lifted their price target on shares of Lumentum from $455.00 to $960.00 and gave the company a “neutral” rating in a report on Wednesday, May 6th. Rosenblatt Securities lifted their price target on shares of Lumentum from $900.00 to $1,300.00 and gave the company a “buy” rating in a report on Wednesday, May 6th. B. Riley Financial reissued a “buy” rating on shares of Lumentum in a report on Friday, May 1st. Jefferies Financial Group reissued a “buy” rating and set a $1,200.00 price target on shares of Lumentum in a report on Wednesday, May 6th. Finally, 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 report on Wednesday, May 6th. Thirteen investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $1,012.43.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum was added to the Nasdaq-100, which can trigger buying from index funds and boost visibility with large institutional investors. Lumentum Joins the Nasdaq-100 Index®, Achieving New Milestone in Global Growth
• Positive Sentiment: Lumentum was upgraded to Zacks Rank #1 (Strong Buy), reflecting improving earnings expectations and reinforcing momentum-buying interest. What Makes Lumentum (LITE) a New Strong Buy Stock
• Positive Sentiment: Commentary highlighted that Lumentum’s Components business is accelerating, with AI optics demand surging and key products sold out, suggesting stronger revenue potential ahead. Lumentum’s Components Business Accelerates: More Upside Ahead?
• Positive Sentiment: Northland Securities raised earnings estimates for Lumentum, adding to the view that the company’s profit outlook is improving. Lumentum stock report
• Neutral Sentiment: Recent coverage also notes that Lumentum’s strong rally has pushed the stock to fresh highs, which can attract momentum buyers but also raise valuation questions.
• Neutral Sentiment: Insider selling was reported this week, but the transactions were made under pre-arranged trading plans, so they appear less likely to signal a major change in fundamentals.

Lumentum Stock Down 2.8%

The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14. The stock has a market cap of $77.94 billion, a price-to-earnings ratio of 185.52 and a beta of 1.53. The firm’s 50-day simple moving average is $804.16 and its two-hundred day simple moving average is $532.16.

Lumentum (NASDAQ:LITE) last posted its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, beating the consensus estimate of $2.27 by $0.10. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The firm had revenue of $808.40 million during the quarter, compared to analysts’ expectations of $810.21 million. During the same quarter last year, the company posted $0.57 EPS. The company’s quarterly revenue was up 90.1% compared to the same quarter last year. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, sell-side analysts expect that Lumentum Holdings Inc. will post 6.49 EPS for the current fiscal year.

Institutional Investors Weigh In On Lumentum

Several institutional investors have recently modified their holdings of the business. Vanguard Group Inc. grew its position in shares of Lumentum by 0.6% during the 3rd quarter. Vanguard Group Inc. now owns 7,485,282 shares of the technology company’s stock worth $1,217,930,000 after buying an additional 41,975 shares during the period. Arrowstreet Capital Limited Partnership grew its position 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 buying an additional 291,591 shares during the period. Geode Capital Management LLC grew its position 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 buying an additional 123,265 shares during the period. Situational Awareness LP grew its position 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 worth $478,577,000 after buying an additional 880,800 shares during the period. Finally, Norges Bank acquired a new stake in shares of Lumentum during the 4th quarter worth approximately $474,495,000. Institutional investors and hedge funds own 94.05% of the company’s stock.

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.