Lumentum (NASDAQ:LITE) Shares Down 9.9% Following Insider Selling

Lumentum Holdings Inc. (NASDAQ:LITE) fell 9.9% during trading on Tuesday after an insider sold shares in the company. The stock traded as low as $863.11 and last traded at $873.31. Approximately 5,950,229 shares were traded during mid-day trading, an increase of 4% from the average session volume of 5,741,491 shares. The stock had previously closed at $968.90.

Specifically, SVP Jae Kim sold 1,366 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $909.43, for a total transaction of $1,242,281.38. Following the transaction, the senior vice president directly owned 45,973 shares of the company’s stock, valued at $41,809,225.39. This represents a 2.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 Vincent Retort sold 3,183 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $909.43, for a total value of $2,894,715.69. Following the completion of the transaction, the insider owned 114,495 shares in the company, valued at approximately $104,125,187.85. This represents a 2.70% decrease in their ownership of the stock. 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.

Wall Street Analysts Forecast Growth

LITE has been the subject of a number of recent research reports. UBS Group set a $820.00 price target on shares of Lumentum in a research note on Wednesday, August 12th. Mizuho raised their price objective on shares of Lumentum from $1,100.00 to $1,140.00 and gave the company an “outperform” rating in a research note on Wednesday, August 12th. Raymond James Financial reiterated an “outperform” rating and set a $1,036.00 price objective on shares of Lumentum in a report on Wednesday, August 12th. TD Cowen upped their target price on shares of Lumentum from $800.00 to $820.00 and gave the stock a “hold” rating in a report on Wednesday, August 12th. Finally, B. Riley Financial reaffirmed a “buy” rating on shares of Lumentum in a research report on Friday, May 1st. Thirteen analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,044.67.

Lumentum Trading Up 0.1%

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 firm has a market capitalization of $74.31 billion, a P/E ratio of -10.00 and a beta of 1.50. The firm has a 50 day simple moving average of $811.06 and a two-hundred day simple moving average of $786.24.

Lumentum (NASDAQ:LITE) last posted its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.97 by $0.26. The firm had revenue of $1.01 billion during the quarter, compared to analyst estimates 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 was up 109.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Equities research analysts forecast that Lumentum Holdings Inc. will post 16.97 earnings per share for the current year.

Institutional Investors Weigh In On Lumentum

Institutional investors have recently added to or reduced their stakes in the company. Jupiter Topco LLC purchased a new position in shares of Lumentum in the 2nd quarter worth approximately $1,621,396,000. Arrowstreet Capital Limited Partnership increased its position in shares of Lumentum by 18.7% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company’s stock valued at $683,661,000 after acquiring an additional 291,591 shares during the last quarter. Geode Capital Management LLC lifted its holdings in Lumentum by 9.6% during the fourth 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 lifted its holdings in Lumentum by 210.9% during the fourth 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 purchased a new position in Lumentum in the fourth quarter worth $474,495,000. 94.05% of the stock is owned by institutional investors.

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.