Lumentum Holdings Inc. (NASDAQ:LITE – Get Free Report) shares dropped 9.3% on Wednesday. The company traded as low as $893.88 and last traded at $896.33. Approximately 5,653,501 shares changed hands during mid-day trading, an increase of 3% from the average daily volume of 5,491,264 shares. The stock had previously closed at $987.99.
Key Stories Impacting Lumentum
Here are the key news stories impacting Lumentum this week:
- Positive Sentiment: Strong AI-driven backlog: Recent reports highlight that Lumentum’s order book has reached a landmark level, with demand reportedly exceeding supply and product commitments extending through 2029. The company also participated in a PCIe-over-optics demonstration for AI rack-scale systems. Lumentum’s Massive Backlog and Demand Justify Buying at Today’s Price
- Positive Sentiment: Analyst target increase: Stifel raised its price target for Lumentum from $1,100 to $1,232, reflecting continued confidence in the company’s growth prospects. Stifel raised target for Lumentum stock
- Neutral Sentiment: Mixed investment views: Commentary points to improving free cash flow, significant net cash and potentially strong fiscal 2027 growth, but also notes that Lumentum trades at a demanding valuation following its large year-to-date gain. Lumentum: The Free Cash Flow Inflection I’m Betting On
- Negative Sentiment: AI funding concerns: Investors are questioning whether spending on AI data centers can remain durable, triggering a sector-wide retreat involving Lumentum, Coherent and Applied Optoelectronics. The concern is that long-term commitments may not fully protect suppliers if customers slow or defer infrastructure investment. AI funding fears hit optical stocks
- Negative Sentiment: Rating downgrade: Zacks Research moved Lumentum from “strong buy” to “hold,” adding to caution after the stock’s sharp run-up.
Analysts Set New Price Targets
LITE has been the topic of several recent research reports. Morgan Stanley increased their target price on shares of Lumentum from $900.00 to $1,000.00 and gave the company an “equal weight” rating in a report on Wednesday, August 12th. Sanford C. Bernstein initiated coverage on shares of Lumentum in a research note on Wednesday, September 30th. They issued an “outperform” rating and a $1,220.00 price target for the company. Needham & Company LLC restated a “buy” rating and set a $1,040.00 price target on shares of Lumentum in a research report on Wednesday, August 12th. Citigroup raised their price objective on Lumentum from $1,200.00 to $1,400.00 and gave the company a “buy” rating in a research note on Monday, September 28th. Finally, Zacks Research downgraded Lumentum from a “strong-buy” rating to a “hold” rating in a report on Monday. Sixteen analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $1,078.75.
Lumentum Price Performance
The business’s 50-day simple moving average is $930.77 and its 200-day simple moving average is $873.79. The stock has a market cap of $81.19 billion, a PE ratio of -10.90 and a beta of 1.53. The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01.
Lumentum (NASDAQ:LITE – Get Free Report) last posted its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, topping analysts’ consensus estimates of $2.97 by $0.26. The company 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%. Lumentum’s revenue for the quarter was up 109.3% on a year-over-year basis. During the same period in the prior year, the business posted $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. On average, research analysts expect that Lumentum Holdings Inc. will post 19.79 EPS for the current fiscal year.
Insider Buying and Selling at Lumentum
In related news, insider Yuen Wupen sold 1,500 shares of the firm’s stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $827.82, for a total value of $1,241,730.00. Following the completion of the sale, the insider owned 100,434 shares of the company’s stock, valued at $83,141,273.88. This trade represents a 1.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, 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, SVP Jae Kim sold 12,000 shares of Lumentum stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $852.58, for a total transaction of $10,230,960.00. Following the completion of the sale, the senior vice president owned 37,804 shares in the company, valued at approximately $32,230,934.32. This trade represents a 24.09% 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. Insiders have sold a total of 94,496 shares of company stock worth $85,978,498 over the last three months. 0.28% of the stock is owned by corporate insiders.
Institutional Investors Weigh In On Lumentum
A number of large investors have recently modified their holdings of LITE. Red Spruce Capital LLC raised its position in Lumentum by 0.4% in the 3rd quarter. Red Spruce Capital LLC now owns 3,200 shares of the technology company’s stock valued at $3,108,000 after purchasing an additional 12 shares during the last quarter. CYBER HORNET ETFs LLC grew its holdings in shares of Lumentum by 7.2% during the second quarter. CYBER HORNET ETFs LLC now owns 209 shares of the technology company’s stock worth $179,000 after buying an additional 14 shares during the last quarter. Hilltop National Bank grew its holdings in shares of Lumentum by 26.8% during the second quarter. Hilltop National Bank now owns 71 shares of the technology company’s stock worth $61,000 after buying an additional 15 shares during the last quarter. Sachetta LLC increased its position in Lumentum by 118.8% in the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock valued at $25,000 after acquiring an additional 19 shares during the period. Finally, Kieckhefer Group LLC raised its stake in Lumentum by 0.8% during the 3rd quarter. Kieckhefer Group LLC now owns 3,191 shares of the technology company’s stock valued at $3,099,000 after acquiring an additional 25 shares during the last quarter. Institutional investors own 94.05% of the company’s stock.
Lumentum Company Profile
Lumentum Holdings Inc is a photonics and optical technology company that develops and manufactures products used to transmit, process and manage light. Its solutions support communications networks, data centers, cloud computing infrastructure, industrial applications, and other technology markets that rely on high-speed optical connectivity and precision lasers.
The company’s product portfolio includes optical components and modules for telecommunications and networking, lasers and laser systems, optical amplifiers, wavelength-management products, and photonic subsystems.
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