Lumentum (NASDAQ:LITE) Cut to “Hold” at Zacks Research

Zacks Research downgraded shares of Lumentum (NASDAQ:LITE) from a strong-buy rating to a hold rating in a research note published on Monday,Zacks.com reports.

Several other equities analysts also recently commented on LITE. JPMorgan Chase & Co. upped their price objective on shares of Lumentum to $950.00 and gave the company an “overweight” rating in a research note on Thursday, April 9th. Needham & Company LLC upped their price objective on shares of Lumentum to $850.00 and gave the company a “buy” rating in a research note on Wednesday, March 4th. B. Riley Financial raised shares of Lumentum from a “neutral” rating to a “buy” rating and upped their price objective for the company from $147.00 to $526.00 in a research note on Wednesday, February 4th. Stifel Nicolaus upped their price objective on shares of Lumentum to $800.00 and gave the company a “buy” rating in a research note on Monday, March 2nd. Finally, Susquehanna upped their price objective on shares of Lumentum to $550.00 and gave the company a “positive” rating in a research note on Wednesday, February 4th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Lumentum presently has a consensus rating of “Moderate Buy” and an average price target of $629.44.

Lumentum Stock Down 3.4%

Shares of NASDAQ:LITE opened at $824.01 on Monday. Lumentum has a 52-week low of $49.13 and a 52-week high of $960.00. The firm has a fifty day moving average of $695.67 and a 200 day moving average of $429.91. The firm has a market capitalization of $58.83 billion, a PE ratio of 252.76 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 announced its earnings results on Tuesday, February 3rd. The technology company reported $1.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.41 by $0.26. Lumentum had a net margin of 11.95% and a return on equity of 17.27%. The company had revenue of $665.50 million during the quarter, compared to analyst estimates of $646.74 million. During the same period in the previous year, the business earned $0.42 earnings per share. The firm’s quarterly revenue was up 65.5% compared to the same quarter last year. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. As a group, research analysts anticipate that Lumentum will post 0.03 EPS for the current fiscal year.

Insider Buying and Selling at Lumentum

In other Lumentum news, insider Vincent Retort sold 3,441 shares of the company’s stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $545.78, for a total value of $1,878,028.98. Following the sale, the insider owned 95,975 shares in the company, valued at approximately $52,381,235.50. This represents a 3.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Penny Herscher sold 4,000 shares of the company’s stock in a transaction dated Thursday, February 12th. The stock was 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 approximately $1,228,625.53. This trade represents a 66.04% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 65,775 shares of company stock worth $38,851,343 in the last ninety days. 0.43% of the stock is owned by company insiders.

Institutional Investors Weigh In On Lumentum

Several institutional investors and hedge funds have recently added to or reduced their stakes in LITE. Arrowstreet Capital Limited Partnership boosted its stake in shares of Lumentum by 8,579.2% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company’s stock worth $254,350,000 after acquiring an additional 1,545,199 shares during the last quarter. Norges Bank purchased a new position in shares of Lumentum during the 4th quarter worth $474,495,000. Value Aligned Research Advisors LLC purchased a new position in shares of Lumentum during the 4th quarter worth $432,062,000. Situational Awareness LP boosted its stake in shares of Lumentum by 210.9% during the 4th 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. Finally, Assenagon Asset Management S.A. boosted its stake in shares of Lumentum by 707.0% during the 4th quarter. Assenagon Asset Management S.A. now owns 994,478 shares of the technology company’s stock worth $366,555,000 after acquiring an additional 871,249 shares during the last quarter. Hedge funds and other institutional investors own 94.05% of the company’s stock.

More Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: A major price-target lift: Aletheia Capital raised its target on LITE from $500 to $1,225 and reiterated a Buy rating, citing AI-driven demand and stronger revenue/estimate revisions — a clear bullish signal for investors. Why Lumentum (LITE) Made the Best Performing AI Stocks List
• Positive Sentiment: Industry/analyst lists highlight LITE as an AI-infrastructure winner — Zacks and other outlets included Lumentum among high-momentum AI/tech names that have helped drive recent rallies, supporting positive momentum flows. Buy 3 AI Infra Giants Flourishing Past Month With More Room to Run
• Positive Sentiment: Relative competitive strength: Coverage comparing nLIGHT vs. Lumentum argues LITE is outpacing its fiber‑laser peer due to AI-driven demand and stronger top-line momentum, which supports further investor interest in LITE. nLIGHT vs. Lumentum: Which Fiber Laser Stock is a Buy Right Now?
• Neutral Sentiment: Analyst consensus remains upbeat but measured: a recent compilation shows a “Moderate Buy” consensus — supportive but not unanimous enthusiasm. Lumentum Holdings Inc. (NASDAQ:LITE) Given Consensus Rating of “Moderate Buy” by Analysts
• Neutral Sentiment: Media coverage notes Lumentum’s huge past-year run (1,500%+ headlines). These stories emphasize momentum but also raise questions about valuation and potential mean reversion — useful context but not new fundamental data. Up 1,539% over the past year, what is next for red-hot Lumentum stock? Up 1,600% over the past year, does Lumentum stock have more room to run?
• Negative Sentiment: Zacks downgraded Lumentum from “Strong Buy” to “Hold,” which can pressure sentiment among momentum-driven investors and funds that track analyst-stamped ratings. Zacks Downgrade Coverage

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.