Wall Street Zen Upgrades Lumentum (NASDAQ:LITE) to “Buy”

Lumentum (NASDAQ:LITE) was upgraded by stock analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Friday.

Several other equities analysts have also issued reports on the company. Wolfe Research began coverage on Lumentum in a research note on Tuesday, August 12th. They issued an “outperform” rating on the stock. Morgan Stanley lifted their price target on Lumentum from $92.00 to $100.00 and gave the company an “equal weight” rating in a research note on Wednesday, August 13th. UBS Group lifted their price target on Lumentum from $78.00 to $130.00 and gave the company a “neutral” rating in a research note on Wednesday, August 13th. Stifel Nicolaus lifted their price target on Lumentum from $100.00 to $132.00 and gave the company a “buy” rating in a research note on Wednesday, August 13th. Finally, Citigroup began coverage on Lumentum in a research note on Friday, August 29th. They issued a “buy” rating and a $165.00 price target on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $133.36.

Lumentum Stock Performance

NASDAQ:LITE opened at $160.75 on Friday. The stock has a fifty day moving average price of $131.19 and a 200-day moving average price of $93.52. The company has a market cap of $11.24 billion, a price-to-earnings ratio of 698.91 and a beta of 1.42. The company has a debt-to-equity ratio of 2.26, a quick ratio of 3.18 and a current ratio of 4.37. Lumentum has a fifty-two week low of $45.65 and a fifty-two week high of $173.38.

Lumentum (NASDAQ:LITE) last released its earnings results on Tuesday, August 12th. The technology company reported $0.88 earnings per share for the quarter, beating analysts’ consensus estimates of $0.79 by $0.09. The firm had revenue of $480.70 million during the quarter, compared to the consensus estimate of $465.27 million. Lumentum had a negative return on equity of 3.02% and a net margin of 1.57%.The company’s revenue was up 55.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.06 EPS. Lumentum has set its Q1 2026 guidance at 0.950-1.100 EPS. As a group, equities analysts anticipate that Lumentum will post 0.03 EPS for the current fiscal year.

Insider Buying and Selling at Lumentum

In related news, SVP Jae Kim sold 4,507 shares of the firm’s stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $116.88, for a total transaction of $526,778.16. Following the completion of the transaction, the senior vice president directly owned 33,465 shares of the company’s stock, valued at $3,911,389.20. This trade represents a 11.87% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Vincent Retort sold 22,719 shares of Lumentum stock in a transaction that occurred on Tuesday, July 29th. The stock was sold at an average price of $110.00, for a total value of $2,499,090.00. Following the completion of the transaction, the insider directly owned 121,747 shares in the company, valued at approximately $13,392,170. This represents a 15.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 41,687 shares of company stock worth $4,759,552 over the last 90 days. Company insiders own 0.19% of the company’s stock.

Hedge Funds Weigh In On Lumentum

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Corient Private Wealth LLC acquired a new position in shares of Lumentum in the second quarter worth approximately $268,000. Osaic Holdings Inc. lifted its holdings in Lumentum by 190.8% in the second quarter. Osaic Holdings Inc. now owns 20,439 shares of the technology company’s stock valued at $1,942,000 after buying an additional 13,410 shares during the period. Thrivent Financial for Lutherans lifted its holdings in Lumentum by 0.7% in the second quarter. Thrivent Financial for Lutherans now owns 16,340 shares of the technology company’s stock valued at $1,553,000 after buying an additional 115 shares during the period. Cim Investment Management Inc. lifted its holdings in Lumentum by 100.8% in the second quarter. Cim Investment Management Inc. now owns 9,622 shares of the technology company’s stock valued at $860,000 after buying an additional 4,829 shares during the period. Finally, Marex Group plc acquired a new position in Lumentum in the second quarter valued at $287,000. 94.05% of the stock is owned by institutional investors and hedge funds.

Lumentum Company Profile

Lumentum Holdings Inc manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables.