Lumentum (NASDAQ:LITE) Reaches New 1-Year High on Analyst Upgrade

Lumentum Holdings Inc. (NASDAQ:LITE) shares reached a new 52-week high during trading on Friday after Morgan Stanley raised their price target on the stock to $350.00. Morgan Stanley currently has an equal weight rating on the stock. Lumentum traded as high as $446.28 and last traded at $421.9810, with a volume of 1217098 shares changing hands. The stock had previously closed at $381.44.

A number of other brokerages have also issued reports on LITE. Wolfe Research reissued an “outperform” rating and issued a $240.00 price target on shares of Lumentum in a research note on Wednesday, November 5th. Wall Street Zen lowered shares of Lumentum from a “buy” rating to a “hold” rating in a report on Saturday, November 1st. Northland Securities set a $350.00 target price on shares of Lumentum in a report on Wednesday, December 3rd. Mizuho set a $455.00 price target on shares of Lumentum in a research report on Friday, January 9th. Finally, Stifel Nicolaus increased their price target on shares of Lumentum from $220.00 to $400.00 and gave the stock a “buy” rating in a research note on Thursday, January 22nd. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $288.06.

Insider Activity

In other news, Director Julia Suzanne Johnson sold 10,000 shares of the company’s stock in a transaction dated Monday, November 10th. The stock was sold at an average price of $270.39, for a total value of $2,703,900.00. Following the completion of the sale, the director owned 12,037 shares of the company’s stock, valued at $3,254,684.43. This represents a 45.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Isaac Hosojiro Harris sold 7,200 shares of the stock in a transaction dated Friday, November 7th. The shares were sold at an average price of $243.32, for a total value of $1,751,904.00. Following the completion of the sale, the director owned 9,764 shares of the company’s stock, valued at approximately $2,375,776.48. This trade represents a 42.44% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 28,612 shares of company stock worth $7,317,398 in the last quarter. Insiders own 0.43% of the company’s stock.

Institutional Trading of Lumentum

Several large investors have recently bought and sold shares of the company. Arrowstreet Capital Limited Partnership boosted its stake in shares of Lumentum by 8,579.2% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company’s stock valued at $254,350,000 after purchasing an additional 1,545,199 shares during the period. Hood River Capital Management LLC increased its stake in Lumentum by 82.1% during the 2nd quarter. Hood River Capital Management LLC now owns 2,206,453 shares of the technology company’s stock worth $209,745,000 after buying an additional 994,551 shares during the period. Norges Bank acquired a new position in Lumentum in the 2nd quarter worth $82,983,000. Assenagon Asset Management S.A. lifted its holdings in Lumentum by 707.0% in the 4th quarter. Assenagon Asset Management S.A. now owns 994,478 shares of the technology company’s stock worth $366,555,000 after buying an additional 871,249 shares in the last quarter. Finally, Holocene Advisors LP purchased a new position in Lumentum in the 3rd quarter valued at about $136,401,000. Institutional investors and hedge funds own 94.05% of the company’s stock.

Lumentum Stock Up 2.7%

The company has a market capitalization of $27.78 billion, a price-to-earnings ratio of 262.98 and a beta of 1.51. The company has a quick ratio of 1.02, a current ratio of 1.37 and a debt-to-equity ratio of 2.77. The firm has a 50 day moving average price of $350.73 and a two-hundred day moving average price of $224.53.

Lumentum (NASDAQ:LITE) last released its quarterly earnings results on Tuesday, November 4th. The technology company reported $1.10 EPS for the quarter, topping the consensus estimate of $1.03 by $0.07. Lumentum had a return on equity of 4.62% and a net margin of 6.11%.The business had revenue of $533.80 million for the quarter, compared to analysts’ expectations of $525.10 million. During the same quarter in the previous year, the firm posted $0.18 earnings per share. The company’s revenue was up 58.4% compared to the same quarter last year. Lumentum has set its Q2 2026 guidance at 1.300-1.500 EPS. As a group, sell-side analysts expect that Lumentum Holdings Inc. will post 0.03 earnings per share for the current 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.