Lumentum (NASDAQ:LITE) Shares Gap Down – What’s Next?

Lumentum Holdings Inc. (NASDAQ:LITE) shares gapped down before the market opened on Thursday . The stock had previously closed at $764.65, but opened at $708.59. Lumentum shares last traded at $766.4560, with a volume of 1,194,923 shares trading hands.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. Mizuho lifted their price objective on Lumentum to $645.00 and gave the stock an “outperform” rating in a report on Tuesday, February 17th. JPMorgan Chase & Co. increased their target price on Lumentum to $565.00 and gave the company an “overweight” rating in a report on Wednesday, February 4th. Weiss Ratings reissued a “hold (c-)” rating on shares of Lumentum in a research report on Monday, December 29th. Susquehanna boosted their price target on Lumentum to $550.00 and gave the company a “positive” rating in a research note on Wednesday, February 4th. Finally, Bank of America upped their price target on shares of Lumentum to $520.00 and gave the company a “neutral” rating in a research report on Wednesday, February 4th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned 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 an average rating of “Moderate Buy” and a consensus target price of $575.06.

Lumentum Stock Performance

The stock has a fifty day moving average of $622.91 and a 200 day moving average of $389.79. The company has a market capitalization of $59.04 billion, a P/E ratio of 253.64 and a beta of 1.38. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.45 and a current ratio of 0.61.

Lumentum (NASDAQ:LITE) last released its quarterly earnings results on Tuesday, February 3rd. The technology company reported $1.67 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.41 by $0.26. The business had revenue of $665.50 million during the quarter, compared to analyst estimates of $646.74 million. Lumentum had a return on equity of 17.27% and a net margin of 11.95%.Lumentum’s revenue for the quarter was up 65.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.42 earnings per share. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. As a group, equities research analysts anticipate that Lumentum Holdings Inc. will post 0.03 EPS for the current fiscal year.

Insider Activity

In other Lumentum news, insider Vincent Retort sold 45,026 shares of the stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $591.32, for a total value of $26,624,774.32. Following the completion of the sale, the insider owned 102,455 shares in the company, valued at approximately $60,583,690.60. This represents a 30.53% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Wajid Ali sold 5,302 shares of the firm’s stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $691.13, for a total value of $3,664,371.26. Following the sale, the chief financial officer directly owned 66,287 shares in the company, valued at approximately $45,812,934.31. This represents a 7.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 65,775 shares of company stock worth $38,851,343 over the last ninety days. Company insiders own 0.43% of the company’s stock.

Institutional Investors Weigh In On Lumentum

A number of institutional investors have recently added to or reduced their stakes in the stock. Parallel Advisors LLC increased its holdings in Lumentum by 16.0% in the 4th quarter. Parallel Advisors LLC now owns 326 shares of the technology company’s stock valued at $120,000 after acquiring an additional 45 shares during the last quarter. Allworth Financial LP lifted its position in shares of Lumentum by 6.4% in the third quarter. Allworth Financial LP now owns 784 shares of the technology company’s stock worth $128,000 after buying an additional 47 shares in the last quarter. UMB Bank n.a. boosted its stake in Lumentum by 5.2% during the fourth quarter. UMB Bank n.a. now owns 968 shares of the technology company’s stock valued at $357,000 after buying an additional 48 shares during the last quarter. Truvestments Capital LLC grew its holdings in 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 buying an additional 57 shares in the last quarter. Finally, Oregon Public Employees Retirement Fund grew its holdings in shares of Lumentum by 0.4% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 14,130 shares of the technology company’s stock valued at $5,208,000 after purchasing an additional 60 shares in the last quarter. 94.05% of the stock is owned by hedge funds and other institutional investors.

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.