Lumentum (NASDAQ:LITE) Shares Up 10.4% – What’s Next?

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price traded up 10.4% on Friday . The company traded as high as $369.38 and last traded at $372.1150. 2,607,237 shares were traded during trading, a decline of 17% from the average session volume of 3,153,329 shares. The stock had previously closed at $337.13.

Analysts Set New Price Targets

A number of brokerages recently commented on LITE. Wolfe Research reissued an “outperform” rating and set a $240.00 price target on shares of Lumentum in a research note on Wednesday, November 5th. Citigroup began coverage on Lumentum in a research report on Friday, August 29th. They set a “buy” rating and a $165.00 target price for the company. Morgan Stanley boosted their price target on shares of Lumentum from $190.00 to $304.00 and gave the stock an “equal weight” rating in a research report on Wednesday. Needham & Company LLC upped their price target on shares of Lumentum to $290.00 and gave the company a “buy” rating in a research note on Monday, November 24th. Finally, Susquehanna lifted their price objective on shares of Lumentum from $140.00 to $190.00 and gave the stock a “positive” rating in a research note on Wednesday, October 22nd. Two research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $222.13.

Lumentum Price Performance

The company has a quick ratio of 1.02, a current ratio of 1.37 and a debt-to-equity ratio of 2.77. The company has a market capitalization of $26.33 billion, a PE ratio of 249.28 and a beta of 1.53. The firm’s 50 day simple moving average is $255.47 and its 200 day simple moving average is $167.33.

Lumentum (NASDAQ:LITE) last announced its earnings results on Tuesday, November 4th. The technology company reported $1.10 earnings per share for the quarter, beating the consensus estimate of $1.03 by $0.07. Lumentum had a net margin of 6.11% and a return on equity of 4.62%. The business had revenue of $533.80 million for the quarter, compared to the consensus estimate of $525.10 million. During the same quarter in the prior year, the firm posted $0.18 earnings per share. The business’s revenue for the quarter was up 58.4% on a year-over-year basis. Lumentum has set its Q2 2026 guidance at 1.300-1.500 EPS. As a group, research analysts anticipate that Lumentum Holdings Inc. will post 0.03 EPS for the current fiscal year.

Insider Buying and Selling at Lumentum

In other news, Director Julia Suzanne Johnson sold 10,000 shares of the company’s stock in a transaction that occurred on Monday, November 10th. The stock was sold at an average price of $270.39, for a total transaction of $2,703,900.00. Following the transaction, the director owned 12,037 shares of the company’s stock, valued at approximately $3,254,684.43. This represents a 45.38% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CAO Matthew Joseph Sepe sold 4,232 shares of the firm’s stock in a transaction that occurred on Friday, November 7th. The stock was sold at an average price of $239.63, for a total value of $1,014,114.16. Following the sale, the chief accounting officer directly owned 43,544 shares of the company’s stock, valued at $10,434,448.72. This represents a 8.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 28,612 shares of company stock valued at $7,317,398. 0.43% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. PointState Capital LP bought a new stake in Lumentum during the 1st quarter valued at about $213,503,000. Arrowstreet Capital Limited Partnership grew its stake in Lumentum by 8,579.2% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company’s stock worth $254,350,000 after acquiring an additional 1,545,199 shares in the last quarter. Hood River Capital Management LLC increased its position in shares of Lumentum by 82.1% during the second quarter. Hood River Capital Management LLC now owns 2,206,453 shares of the technology company’s stock worth $209,745,000 after acquiring an additional 994,551 shares during the period. Analog Century Management LP bought a new stake in shares of Lumentum during the first quarter valued at approximately $60,348,000. Finally, Norges Bank bought a new stake in shares of Lumentum during the second quarter valued at approximately $82,983,000. 94.05% of the stock is currently 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.