Lumentum (NASDAQ:LITE) Shares Down 11.2% on Insider Selling

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price was down 11.2% on Tuesday after an insider sold shares in the company. The company traded as low as $681.10 and last traded at $695.19. Approximately 6,205,673 shares were traded during trading, an increase of 19% from the average daily volume of 5,210,936 shares. The stock had previously closed at $783.25.

Specifically, CFO Wajid Ali sold 5,302 shares of the business’s stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $691.13, for a total transaction of $3,664,371.26. Following the sale, the chief financial officer owned 66,287 shares of the company’s stock, valued at $45,812,934.31. The trade was a 7.41% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink.

Analyst Ratings Changes

LITE has been the topic of a number of research analyst reports. Mizuho boosted their target price on Lumentum to $645.00 and gave the stock an “outperform” rating in a research report on Tuesday, February 17th. Northland Securities set a $350.00 price objective on shares of Lumentum in a research note on Wednesday, December 3rd. Barclays upped their price objective on Lumentum to $750.00 and gave the company an “equal weight” rating in a research report on Tuesday. Bank of America lifted their price objective on Lumentum to $520.00 and gave the stock a “neutral” rating in a research report on Wednesday, February 4th. Finally, UBS Group upped their target price on shares of Lumentum from $215.00 to $455.00 and gave the company a “neutral” rating in a report on Wednesday, February 4th. Two research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $513.94.

Lumentum News Roundup

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: NVIDIA committed a large strategic investment and purchase commitments that secure demand and funding for Lumentum’s AI optics capacity — a clear demand de‑risking catalyst for LITE. Read More.
• Positive Sentiment: Several Wall Street analysts raised ratings/targets after the NVIDIA announcement (Needham boosted its 12‑month target to $850 and Barclays raised its target to $750), reinforcing institutional bullishness on Lumentum as an AI “picks‑and‑shovels” play. Read More.
• Neutral Sentiment: Sector flows into AI/optics names are amplifying moves in LITE — much of the recent volatility reflects thematic positioning across photonics peers rather than new company fundamentals. Read More.
• Negative Sentiment: Lumentum disclosed a $2B private placement of convertible preferred stock to NVIDIA; while strategic, the financing structure (convertible preferred terms and timing) has raised dilution/valuation concerns that likely prompted profit‑taking and the intraday pullback. Read More.
• Negative Sentiment: Insider selling: CFO Wajid Ali disclosed a sale of shares recently — such filings can spook momentum traders even if sales are routine diversification. Read More.

Lumentum Trading Down 2.0%

The firm has a fifty day moving average of $474.47 and a 200-day moving average of $305.27. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.45 and a current ratio of 0.61. The stock has a market capitalization of $48.61 billion, a price-to-earnings ratio of 208.83 and a beta of 1.38.

Lumentum (NASDAQ:LITE) last issued its earnings results on Tuesday, February 3rd. The technology company reported $1.67 earnings per share for the quarter, topping 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 return on equity of 17.27% and a net margin of 11.95%.The company’s revenue was up 65.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.42 earnings per share. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. As a group, equities analysts predict that Lumentum Holdings Inc. will post 0.03 earnings per share for the current fiscal year.

Institutional Trading of Lumentum

A number of hedge funds have recently made changes to their positions in LITE. Truvestments Capital LLC boosted its stake in shares of Lumentum by 300.0% in the fourth quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock valued at $28,000 after purchasing an additional 57 shares during the period. V Square Quantitative Management LLC purchased a new position in Lumentum in the 4th quarter valued at about $28,000. Triumph Capital Management acquired a new stake in shares of Lumentum during the fourth quarter valued at about $30,000. Harbour Investments Inc. grew its stake in shares of Lumentum by 675.0% during the fourth quarter. Harbour Investments Inc. now owns 93 shares of the technology company’s stock valued at $34,000 after acquiring an additional 81 shares in the last quarter. Finally, Chesapeake Asset Management LLC purchased a new stake in shares of Lumentum during the fourth quarter worth about $37,000. Hedge funds and other institutional investors own 94.05% of the company’s stock.

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.