Lumentum (NASDAQ:LITE) Stock Price Down 3.1% – Time to Sell?

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price traded down 3.1% during mid-day trading on Friday . The company traded as low as $923.00 and last traded at $970.70. 10,084,946 shares were traded during trading, an increase of 67% from the average session volume of 6,032,634 shares. The stock had previously closed at $1,001.81.

More Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Zacks Research upgraded Lumentum (LITE) from hold to strong-buy, signaling improved earnings outlook and stronger near-term sentiment. Tickerreport.com
• Positive Sentiment: Investors are reacting to reports of surging AI optics demand, with Lumentum’s components business reportedly sold out through 2028 and the company planning to expand manufacturing capacity, which supports a higher valuation. Lumentum’s AI Optics Demand And NVIDIA Deal Reshape Valuation Debate
• Positive Sentiment: The stock also benefited from broader momentum-stock and analyst coverage that placed LITE on Zacks’ Rank #1 Strong Buy list, adding to bullish trading sentiment. Best Momentum Stocks to Buy for May 14th
• Positive Sentiment: Multiple articles highlighted accelerating growth in Lumentum’s components business, particularly around AI optics and hyperscale data-center demand, reinforcing expectations for continued revenue strength. Lumentum’s Components Business Accelerates: More Upside Ahead?
• Neutral Sentiment: Investor attention is also building around an upcoming May 18 event, but the articles provided do not specify a concrete new catalyst yet. Dear Lumentum stock fans, mark your calendars for May 18

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. TD Cowen lifted their target price on Lumentum from $875.00 to $995.00 and gave the stock a “hold” rating in a report on Wednesday, May 6th. Jefferies Financial Group reaffirmed a “buy” rating and set a $1,200.00 target price on shares of Lumentum in a report on Wednesday, May 6th. Northland Securities set a $1,000.00 target price on Lumentum in a report on Monday, April 20th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Lumentum in a report on Tuesday, April 21st. Finally, Bank of America lifted their target price on Lumentum to $520.00 and gave the stock a “neutral” rating in a report on Wednesday, February 4th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $1,012.43.

Lumentum Price Performance

The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01. The firm has a market cap of $75.52 billion, a price-to-earnings ratio of 179.76 and a beta of 1.53. The stock has a 50-day moving average of $804.16 and a two-hundred day moving average of $532.16.

Lumentum (NASDAQ:LITE) last released its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share 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 business had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.21 million. During the same quarter last year, the company posted $0.57 EPS. Lumentum’s revenue for the quarter 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, analysts anticipate that Lumentum Holdings Inc. will post 6.49 EPS for the current year.

Insider Activity

In other Lumentum news, SVP Jae Kim sold 1,933 shares of the firm’s stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $950.99, for a total transaction of $1,838,263.67. Following the completion of the sale, the senior vice president directly owned 35,114 shares in the company, valued at approximately $33,393,062.86. This trade represents a 5.22% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Vincent Retort sold 3,441 shares of the firm’s stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $545.78, for a total value of $1,878,028.98. Following the sale, the insider owned 95,975 shares of the company’s stock, valued at $52,381,235.50. The trade was a 3.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 29,333 shares of company stock worth $24,049,017. Corporate insiders own 0.43% of the company’s stock.

Institutional Investors Weigh In On Lumentum

A number of institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. boosted its position in 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 acquiring an additional 41,975 shares during the period. Arrowstreet Capital Limited Partnership boosted its position in 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 acquiring an additional 291,591 shares during the period. Geode Capital Management LLC boosted its position in 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 acquiring an additional 123,265 shares during the period. Situational Awareness LP boosted its position in 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 acquiring an additional 880,800 shares during the period. Finally, Norges Bank acquired a new stake in Lumentum during the 4th quarter worth about $474,495,000. 94.05% of the stock is currently owned by institutional investors and hedge funds.

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.