Lumentum (NASDAQ:LITE) Shares Up 7.8% After Analyst Upgrade

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price was up 7.8% during trading on Tuesday after Mizuho raised their price target on the stock to $645.00. Mizuho currently has an outperform rating on the stock. Lumentum traded as high as $612.50 and last traded at $606.6630. Approximately 3,806,765 shares traded hands during trading, a decline of 26% from the average daily volume of 5,163,739 shares. The stock had previously closed at $562.74.

Other equities research analysts have also issued research reports about the company. Susquehanna raised their price target on Lumentum to $550.00 and gave the stock a “positive” rating in a research report on Wednesday, February 4th. UBS Group increased their target price on Lumentum from $215.00 to $455.00 and gave the stock a “neutral” rating in a research note on Wednesday, February 4th. B. Riley Financial raised shares of Lumentum from a “neutral” rating to a “buy” rating and lifted their price target for the company from $147.00 to $526.00 in a research note on Wednesday, February 4th. Barclays upped their price target on shares of Lumentum to $475.00 and gave the company an “equal weight” rating in a report on Thursday, February 5th. Finally, Bank of America raised their price objective on shares of Lumentum to $520.00 and gave the stock a “neutral” rating in a report on Wednesday, February 4th. Two analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Lumentum has a consensus rating of “Moderate Buy” and an average target price of $447.38.

Insider Buying and Selling

In related news, insider Vincent Retort sold 45,026 shares of the firm’s stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $591.32, for a total value of $26,624,774.32. Following the completion of the transaction, the insider owned 102,455 shares of the company’s stock, valued at approximately $60,583,690.60. This trade represents a 30.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Penny Herscher sold 4,000 shares of Lumentum stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $597.29, for a total transaction of $2,389,160.00. Following the completion of the sale, the director owned 2,057 shares in the company, valued at $1,228,625.53. The trade was a 66.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 53,875 shares of company stock worth $31,610,477 over the last quarter. 0.43% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of LITE. Vanguard Group Inc. increased its position in shares of Lumentum by 0.6% during the 3rd quarter. Vanguard Group Inc. now owns 7,485,282 shares of the technology company’s stock worth $1,217,930,000 after purchasing an additional 41,975 shares during the last quarter. Hood River Capital Management LLC boosted its holdings in shares of Lumentum by 82.1% in the 2nd quarter. Hood River Capital Management LLC now owns 2,206,453 shares of the technology company’s stock valued at $209,745,000 after buying an additional 994,551 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its stake in shares of Lumentum by 18.7% in the fourth 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 increased its holdings in Lumentum by 9.6% during the fourth quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company’s stock worth $521,563,000 after buying an additional 123,265 shares during the last quarter. Finally, Situational Awareness LP increased its holdings in Lumentum by 210.9% during the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock worth $478,577,000 after buying an additional 880,800 shares during the last quarter. 94.05% of the stock is owned by institutional investors and hedge funds.

Lumentum Price Performance

The stock has a market capitalization of $42.87 billion, a P/E ratio of 184.18 and a beta of 1.51. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.61 and a quick ratio of 0.45. The company’s 50-day simple moving average is $402.39 and its 200-day simple moving average is $262.50.

Lumentum (NASDAQ:LITE) last announced its quarterly earnings data on Tuesday, February 3rd. The technology company reported $1.67 EPS for the quarter, beating analysts’ consensus estimates 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 net margin of 11.95% and a return on equity of 17.27%. The company’s quarterly revenue was up 65.5% on a year-over-year basis. During the same quarter last year, the firm posted $0.42 EPS. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. As a group, sell-side analysts expect that Lumentum Holdings Inc. will post 0.03 EPS for the current fiscal 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.