Lumentum Holdings Inc. (NASDAQ:LITE) Given Average Rating of “Moderate Buy” by Brokerages

Lumentum Holdings Inc. (NASDAQ:LITE) has been assigned an average rating of “Moderate Buy” from the nineteen brokerages that are currently covering the stock, MarketBeat.com reports. Five investment analysts have rated the stock with a hold rating, twelve have assigned a buy rating and two have given a strong buy rating to the company. The average 1-year target price among analysts that have updated their coverage on the stock in the last year is $458.00.

A number of research firms recently issued reports on LITE. Weiss Ratings restated a “hold (c-)” rating on shares of Lumentum in a research note on Monday, December 29th. Bank of America increased their price objective on Lumentum to $520.00 and gave the company a “neutral” rating in a report on Wednesday, February 4th. Wolfe Research restated an “outperform” rating and set a $240.00 target price on shares of Lumentum in a research report on Wednesday, November 5th. Mizuho upped their price target on shares of Lumentum to $645.00 and gave the company an “outperform” rating in a research report on Tuesday, February 17th. Finally, Susquehanna raised their price objective on shares of Lumentum to $550.00 and gave the stock a “positive” rating in a research report on Wednesday, February 4th.

Lumentum News Roundup

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Analysts say a 1.6T optics ramp is arriving ahead of plan, tightening laser supply and shifting sales toward higher‑margin 200G lanes — a structural boost to revenue and gross margins. AI Optics Boom: What 1.6T Ramp Means for the LITE Stock’s Prospect
• Positive Sentiment: Coverage highlights that coherent pluggable optics (CPO) orders are moving from “hype” into contracted backlog — improving revenue visibility and making late‑2027 scale more credible, which supports upside to forward guidance. CPO is Moving From Hype to Backlog for LITE: More Upside Ahead?
• Positive Sentiment: Commentary notes LITE shares have nearly doubled in the past month as AI optics demand, OCS backlog and growing CPO orders drive accelerating revenue and margin expansion — fueling momentum and fresh upward analyst attention. Lumentum Rises 99% in a Month: Are the Shares Still a Buy?
• Positive Sentiment: Macro/sector stories are rotating investor money beyond GPUs into AI infrastructure names; LITE appears on several “AI‑infrastructure” buy lists, increasing institutional interest and multiple expansion potential. Forget Nvidia, This Is the Stock to Buy For the AI Boom’s Next Leg Up
• Neutral Sentiment: Unusual options activity: traders bought roughly 13,981 call contracts (about +15% vs typical daily call volume) — a sign of speculative bullish positioning but not definitive proof of sustained buying.
• Neutral Sentiment: Relative comparisons vs. peers underline LITE’s stronger AI-driven revenue outlook versus some equipment vendors with slumping sales — useful context for positioning but not a direct catalyst. Lumentum vs. Amtech: Which Semiconductor Stock is the Better Buy?
• Negative Sentiment: Risk: the rally has produced a rich valuation and fast price moves; high expectations (and a stretched P/E) leave shares exposed to profit‑taking or any miss versus elevated forecasts.

Insider Buying and Selling

In other Lumentum news, insider Vincent Retort sold 45,026 shares of the stock in a transaction that occurred on Thursday, February 12th. The stock was sold at an average price of $591.32, for a total transaction of $26,624,774.32. Following the completion of the sale, the insider directly owned 102,455 shares of the company’s stock, valued at approximately $60,583,690.60. This trade represents a 30.53% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Penny Herscher sold 4,849 shares of the business’s stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $535.48, for a total value of $2,596,542.52. Following the completion of the transaction, the director directly owned 6,057 shares in the company, valued at approximately $3,243,402.36. The trade was a 44.46% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 60,473 shares of company stock valued at $35,186,972 over the last quarter. 0.43% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Lumentum

Several hedge funds have recently modified their holdings of LITE. Arrowstreet Capital Limited Partnership increased 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 valued at $254,350,000 after buying an additional 1,545,199 shares during the period. Norges Bank purchased a new stake in shares of Lumentum in the fourth quarter valued at about $474,495,000. Value Aligned Research Advisors LLC acquired a new position in shares of Lumentum during the fourth quarter worth about $432,062,000. Hood River Capital Management LLC raised its holdings in 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 purchasing an additional 994,551 shares in the last quarter. Finally, Situational Awareness LP lifted its position in Lumentum by 210.9% in the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock valued at $478,577,000 after purchasing an additional 880,800 shares during the period. 94.05% of the stock is owned by institutional investors and hedge funds.

Lumentum Trading Up 1.0%

NASDAQ LITE opened at $674.73 on Tuesday. The firm’s fifty day moving average price is $425.90 and its 200 day moving average price is $277.51. Lumentum has a 12 month low of $45.65 and a 12 month high of $688.07. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.61 and a quick ratio of 0.45. The company has a market capitalization of $48.18 billion, a price-to-earnings ratio of 206.97 and a beta of 1.51.

Lumentum (NASDAQ:LITE) last released its quarterly earnings data on Tuesday, February 3rd. The technology company reported $1.67 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.41 by $0.26. The company had revenue of $665.50 million during the quarter, compared to the consensus estimate of $646.74 million. Lumentum had a net margin of 11.95% and a return on equity of 17.27%. Lumentum’s revenue for the quarter was up 65.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.42 earnings per share. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. On average, sell-side analysts expect that Lumentum will post 0.03 earnings per share for the current fiscal year.

About Lumentum

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.