Lumentum (NASDAQ:LITE) Stock Price Down 5% – Time to Sell?

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price was down 5% during trading on Friday . The stock traded as low as $774.30 and last traded at $818.73. 9,028,476 shares traded hands during mid-day trading, an increase of 50% from the average session volume of 6,012,898 shares. The stock had previously closed at $861.97.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on LITE shares. Needham & Company LLC restated a “buy” rating and issued a $1,040.00 target price on shares of Lumentum in a report on Tuesday, June 9th. JPMorgan Chase & Co. upped their price target on Lumentum from $950.00 to $1,130.00 and gave the stock an “overweight” rating in a report on Wednesday, May 6th. Citigroup increased their price target on Lumentum from $800.00 to $1,100.00 and gave the company a “buy” rating in a research report on Tuesday, April 21st. Jefferies Financial Group restated a “buy” rating and set a $1,200.00 price objective on shares of Lumentum in a research note on Wednesday, May 6th. Finally, Rosenblatt Securities lifted their price objective on shares of Lumentum from $900.00 to $1,300.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $1,021.95.

Lumentum Stock Performance

The company’s 50-day simple moving average is $901.03 and its 200 day simple moving average is $668.39. The stock has a market cap of $63.70 billion, a P/E ratio of 151.62 and a beta of 1.47. 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) last released its earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.27 by $0.10. The company had revenue of $808.40 million during the quarter, compared to analyst estimates 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 period in the prior year, the company posted $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, sell-side analysts expect that Lumentum Holdings Inc. will post 6.4 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Isaac Hosojiro Harris sold 4,000 shares of the firm’s stock in a transaction on Friday, May 29th. The stock was sold at an average price of $860.00, for a total transaction of $3,440,000.00. Following the completion of the sale, the director directly owned 8,400 shares of the company’s stock, valued at $7,224,000. This trade represents a 32.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 3,210 shares of Lumentum stock in a transaction on Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $3,062,179.50. Following the sale, the insider owned 81,488 shares in the company, valued at $77,735,477.60. The trade was a 3.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. In the last 90 days, insiders have sold 41,260 shares of company stock valued at $38,859,220. 0.43% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Lumentum

Several institutional investors have recently added to or reduced their stakes in the stock. Hilton Head Capital Partners LLC purchased a new stake in Lumentum during the first quarter worth about $25,000. Sachetta LLC boosted its stake in Lumentum by 118.8% in the first quarter. Sachetta LLC now owns 35 shares of the technology company’s stock valued at $25,000 after acquiring an additional 19 shares during the last quarter. EverSource Wealth Advisors LLC boosted its stake in Lumentum by 363.9% in the third quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company’s stock valued at $27,000 after acquiring an additional 131 shares during the last quarter. V Square Quantitative Management LLC purchased a new position in Lumentum in the fourth quarter valued at about $28,000. Finally, Truvestments Capital LLC grew its position in shares of Lumentum by 300.0% during the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock valued at $28,000 after acquiring an additional 57 shares during the period. Institutional investors own 94.05% of the company’s stock.

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.