Lumentum Holdings Inc. (NASDAQ:LITE – Get Free Report)’s stock price traded up 5.9% on Tuesday. The company traded as high as $892.99 and last traded at $866.18. Approximately 5,509,960 shares traded hands during mid-day trading, an increase of 1% from the average daily volume of 5,474,724 shares. The stock had previously closed at $818.10.
Key Lumentum News
Here are the key news stories impacting Lumentum this week:
- Positive Sentiment: New Buy rating and $1,200 target: StoneX initiated coverage with a Buy rating and a $1,200 price target, citing “critical scarcity points” in optical components. The target implies further upside and helped lift LITE and other optical-networking stocks. StoneX starts coverage with USD 1,200 target for Lumentum stock
- Positive Sentiment: AI infrastructure demand remains the primary catalyst: Analysts point to accelerating demand for optical connectivity, high-power lasers and pump lasers as hyperscalers expand AI data centers. Lumentum’s AI-driven optical growth and strong shipment forecasts are viewed favorably relative to some other infrastructure stocks. NVT vs. LITE: Which AI Infrastructure Stock Has an Edge Right Now?
- Positive Sentiment: Products reportedly sold out through 2029: Reports of exceptionally strong orders and limited availability for AI-related components reinforce the view that Lumentum has pricing power and significant visibility into future revenue. The company also demonstrated AI rack optics, highlighting potential participation in next-generation data-center architectures. Lumentum stock surges as AI components sell out
- Positive Sentiment: Additional bullish analyst support: BNP Paribas raised its Lumentum price target to $1,425, adding to the positive sentiment surrounding the company’s AI and optical-networking opportunity. BNP Paribas raised target for Lumentum stock to USD 1,425
- Neutral Sentiment: Technical coverage noted that LITE moved above its 200-day moving average, a potentially constructive signal, although the stock remains volatile and below its recent high. Lumentum share price breaks above 200-day moving average
- Negative Sentiment: Valuation and execution risks remain: Commentary cautions that being sold out does not automatically prove the business is scalable. InP fabrication capacity is a bottleneck, while expansion into optical circuit switching could face greater competitive risk. After the stock’s substantial multiyear run, analysts also question whether projected cash flows justify its elevated valuation. Lumentum: Sold Out Is Not The Same As Scalable
Wall Street Analyst Weigh In
Several research analysts recently issued reports on the stock. Zacks Research downgraded shares of Lumentum from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 12th. JPMorgan Chase & Co. raised their price objective on shares of Lumentum from $1,165.00 to $1,280.00 and gave the company an “overweight” rating in a research report on Wednesday, August 12th. Bank of America dropped their target price on shares of Lumentum from $1,100.00 to $1,000.00 and set a “neutral” rating for the company in a research note on Wednesday, August 12th. Jefferies Financial Group boosted their target price on shares of Lumentum from $1,200.00 to $1,250.00 and gave the stock a “buy” rating in a research note on Tuesday, October 20th. Finally, Sanford C. Bernstein began coverage on shares of Lumentum in a research report on Wednesday, September 30th. They set an “outperform” rating and a $1,220.00 target price on the stock. Sixteen analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Lumentum currently has an average rating of “Moderate Buy” and an average price target of $1,080.83.
View Our Latest Report on LITE
Lumentum Trading Up 5.9%
The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01. The company has a market cap of $78.46 billion, a P/E ratio of -10.54 and a beta of 1.53. The business has a 50-day moving average price of $923.08 and a two-hundred day moving average price of $784.46.
Lumentum (NASDAQ:LITE – Get Free Report) last issued its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, topping the consensus estimate of $2.97 by $0.26. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The company had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $987.70 million. During the same quarter in the previous year, the company earned $0.88 EPS. Lumentum’s revenue was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. On average, analysts predict that Lumentum Holdings Inc. will post 19.79 EPS for the current year.
Insider Activity at Lumentum
In other news, insider Yuen Wupen sold 1,500 shares of the company’s stock in a transaction dated 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 directly owned 100,434 shares of the company’s stock, valued at $83,141,273.88. This represents a 1.47% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Michael Hurlston sold 548 shares of the company’s stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $958.66, for a total transaction of $525,345.68. Following the completion of the sale, the chief executive officer directly owned 186,951 shares of the company’s stock, valued at $179,222,445.66. The trade was a 0.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 94,496 shares of company stock worth $85,978,498. 0.28% of the stock is owned by company insiders.
Institutional Trading of Lumentum
Several hedge funds have recently added to or reduced their stakes in LITE. Jupiter Topco LLC bought a new position in Lumentum during the second quarter worth about $1,621,396,000. Amundi lifted its holdings in shares of Lumentum by 188.7% during the 2nd quarter. Amundi now owns 658,427 shares of the technology company’s stock valued at $564,970,000 after purchasing an additional 430,355 shares in the last quarter. WT Asset Management Ltd acquired a new position in shares of Lumentum in the 2nd quarter valued at approximately $494,688,000. Janus Henderson Group PLC grew its position in shares of Lumentum by 163.2% in the 1st quarter. Janus Henderson Group PLC now owns 567,182 shares of the technology company’s stock valued at $398,590,000 after purchasing an additional 351,676 shares during the period. Finally, Legal & General Group Plc acquired a new position in shares of Lumentum in the 2nd quarter valued at approximately $376,539,000. Institutional investors and hedge funds own 94.05% of the company’s stock.
Lumentum Company Profile
Lumentum Holdings Inc is a technology company that designs and manufactures optical and photonic products for communications networks, industrial applications, and consumer electronics. Its portfolio includes optical components, modules, and subsystems used in fiber-optic networks, data centers, cloud computing infrastructure, telecommunications equipment, and high-speed connectivity systems.
The company also develops laser products for applications such as industrial processing, sensing, three-dimensional imaging, and other specialized commercial and consumer uses.
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