Lumentum Holdings Inc. (NASDAQ:LITE – Get Free Report)’s stock price was down 2.7% on Wednesday . The stock traded as low as $824.00 and last traded at $826.26. Approximately 3,400,349 shares traded hands during mid-day trading, a decline of 41% from the average daily volume of 5,726,849 shares. The stock had previously closed at $849.47.
Trending Headlines about Lumentum
Here are the key news stories impacting Lumentum this week:
- Positive Sentiment: AI-photonics rally: Lumentum benefited from broad strength across “AI pick-and-shovel” stocks. Strong results from peers helped reinforce expectations that rising data-center connectivity requirements will support demand for optical and photonic products. These AI ‘Pick and Shovel’ Plays Soared on Friday
- Positive Sentiment: Potential China-related tailwind: Reports that the Federal Communications Commission could restrict imports of new Chinese optical transceivers are raising the possibility of greater market share and pricing opportunities for U.S.-based suppliers such as Lumentum. Analysts have cited an approximately $1,100 price target and continued earnings-growth potential. The Trump Administration Could Soon Create the ‘Mother of All’ AI Bottlenecks LITE Stock Alert: Analysts See Big Upside Ahead for Lumentum
- Positive Sentiment: Strong growth expectations ahead of earnings: Lumentum is expected to report fiscal fourth-quarter results Tuesday. Investors are focused on whether strong AI optics demand and the ramp of 1.6-terabit transceivers can drive another strong quarter, with options markets anticipating significant volatility around the release. Should Lumentum Stock Be in Your Portfolio Pre-Q4 Earnings? Nvidia-Backed Lumentum Reports Earnings Tuesday
- Neutral Sentiment: Peer confirmation: Applied Optoelectronics’ sharply higher second-quarter revenue and gains among other optical suppliers provided additional evidence of robust industry demand, helping lift sentiment toward Lumentum. Applied Optoelectronics Zooms Higher on Quarterly Results
- Negative Sentiment: Execution and valuation risks: Supply constraints could limit Lumentum’s ability to capitalize on AI demand, while the stock’s substantial 2026 advance and elevated valuation leave it vulnerable to an earnings miss, cautious guidance, or profit-taking. Lumentum: You Snooze, You Lose
Analyst Upgrades and Downgrades
Several equities analysts recently commented on the company. Rosenblatt Securities increased their target price on Lumentum from $900.00 to $1,300.00 and gave the company a “buy” rating in a report on Wednesday, May 6th. Loop Capital raised their target price on Lumentum from $900.00 to $1,400.00 and gave the stock a “buy” rating in a research report on Tuesday, May 5th. Zacks Research cut Lumentum from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 6th. JPMorgan Chase & Co. increased their price target on shares of Lumentum from $950.00 to $1,130.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Finally, UBS Group upped their target price on shares of Lumentum from $455.00 to $960.00 and gave the company a “neutral” rating in a report on Wednesday, May 6th. Fourteen analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. Based on data from MarketBeat, Lumentum presently has an average rating of “Moderate Buy” and an average price target of $1,012.67.
Lumentum Stock Performance
The stock’s 50 day moving average is $814.53 and its 200 day moving average is $752.96. The stock has a market capitalization of $69.26 billion, a price-to-earnings ratio of 164.85 and a beta of 1.50. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01.
Lumentum (NASDAQ:LITE – Get Free Report) last announced its earnings results on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, beating analysts’ consensus estimates of $2.27 by $0.10. The firm had revenue of $808.40 million for the quarter, compared to analysts’ expectations of $810.21 million. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.Lumentum’s quarterly revenue was up 90.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.57 EPS. On average, analysts predict that Lumentum Holdings Inc. will post 6.42 earnings per share for the current year.
Insider Transactions at Lumentum
In related news, insider Vincent Retort sold 3,183 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $953.95, for a total value of $3,036,422.85. Following the sale, the insider directly owned 89,563 shares of the company’s stock, valued at approximately $85,438,623.85. This trade represents a 3.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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 1,422 shares of Lumentum stock in a transaction on Monday, May 18th. The shares were sold at an average price of $953.95, for a total value of $1,356,516.90. Following the completion of the transaction, the senior vice president owned 32,333 shares in the company, valued at $30,844,065.35. The trade was a 4.21% decrease in their position. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 37,760 shares of company stock worth $35,670,125 in the last three months. 0.43% of the stock is currently owned by company insiders.
Institutional Trading of Lumentum
Several large investors have recently added to or reduced their stakes in LITE. Hilton Head Capital Partners LLC acquired a new position in Lumentum during the 1st quarter worth approximately $25,000. Sachetta LLC lifted its stake in shares of Lumentum by 118.8% in the first quarter. Sachetta LLC now owns 35 shares of the technology company’s stock worth $25,000 after acquiring an additional 19 shares in the last quarter. V Square Quantitative Management LLC acquired a new stake in Lumentum during the 4th quarter valued at approximately $28,000. Truvestments Capital LLC raised its position in shares of Lumentum by 300.0% in the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock valued at $28,000 after purchasing an additional 57 shares in the last quarter. Finally, Triumph Capital Management bought a new stake in shares of Lumentum in the fourth quarter worth $30,000. 94.05% of the stock is currently owned by institutional investors and hedge funds.
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.
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