Lumentum (NASDAQ:LITE) Shares Gap Down – Here’s What Happened

Lumentum Holdings Inc. (NASDAQ:LITE) gapped down prior to trading on Thursday . The stock had previously closed at $801.16, but opened at $777.58. Lumentum shares last traded at $791.8340, with a volume of 452,388 shares traded.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on LITE. Needham & Company LLC reiterated a “buy” rating and set a $1,040.00 price target on shares of Lumentum in a research report on Tuesday, June 9th. Susquehanna raised their price objective on shares of Lumentum from $550.00 to $1,100.00 and gave the stock a “positive” rating in a report on Monday, April 20th. Rosenblatt Securities lifted their price objective on Lumentum from $900.00 to $1,300.00 and gave the company a “buy” rating in a research report on Wednesday, May 6th. BNP Paribas Exane lifted their price objective on Lumentum from $1,040.00 to $1,300.00 in a research report on Wednesday, May 6th. Finally, B. Riley Financial reiterated a “buy” rating on shares of Lumentum in a report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat, Lumentum has a consensus rating of “Moderate Buy” and an average price target of $1,021.95.

Lumentum Stock Performance

The stock has a market cap of $56.66 billion, a P/E ratio of 134.87 and a beta of 1.48. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01. The stock’s fifty day moving average price is $892.56 and its 200 day moving average price is $683.79.

Lumentum (NASDAQ:LITE) last released its earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, topping analysts’ consensus estimates of $2.27 by $0.10. The firm had revenue of $808.40 million for the quarter, compared to the consensus estimate of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The company’s revenue was up 90.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. Equities research analysts expect that Lumentum Holdings Inc. will post 6.4 earnings per share for the current year.

Insider Buying and Selling at Lumentum

In other Lumentum news, Director Isaac Hosojiro Harris sold 1,416 shares of the firm’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $1,000.08, for a total transaction of $1,416,113.28. Following the completion of the transaction, the director owned 6,984 shares of the company’s stock, valued at approximately $6,984,558.72. This trade represents a 16.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Vincent Retort sold 3,183 shares of Lumentum stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $3,036,422.85. Following the transaction, the insider owned 89,563 shares of the company’s stock, valued at $85,438,623.85. The trade was a 3.43% 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. Insiders have sold a total of 41,260 shares of company stock valued at $38,859,220 over the last three months. 0.43% of the stock is currently owned by corporate insiders.

Institutional Trading of Lumentum

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Arrowstreet Capital Limited Partnership increased its position in Lumentum by 18.7% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company’s stock valued at $683,661,000 after buying an additional 291,591 shares in the last quarter. Geode Capital Management LLC boosted its holdings in Lumentum by 9.6% in the fourth quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company’s stock worth $521,563,000 after acquiring an additional 123,265 shares in the last quarter. Situational Awareness LP grew its stake in shares of Lumentum by 210.9% in the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock worth $478,577,000 after acquiring an additional 880,800 shares during the last quarter. Norges Bank purchased a new stake in shares of Lumentum in the fourth quarter worth $474,495,000. Finally, Value Aligned Research Advisors LLC bought a new position in shares of Lumentum during the fourth quarter valued at $432,062,000. Hedge funds and other 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.