Lumentum Target of Unusually High Options Trading (NASDAQ:LITE)

Lumentum Holdings Inc. (NASDAQ:LITE) was the recipient of unusually large options trading on Monday. Stock investors bought 13,981 call options on the company. This is an increase of 15% compared to the typical volume of 12,210 call options.

Lumentum News Roundup

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Analysts say a 1.6T optics ramp is arriving ahead of plan, tightening laser supply and shifting sales toward higher‑margin 200G lanes — a structural boost to revenue and gross margins. AI Optics Boom: What 1.6T Ramp Means for the LITE Stock’s Prospect
• Positive Sentiment: Coverage highlights that coherent pluggable optics (CPO) orders are moving from “hype” into contracted backlog — improving revenue visibility and making late‑2027 scale more credible, which supports upside to forward guidance. CPO is Moving From Hype to Backlog for LITE: More Upside Ahead?
• Positive Sentiment: Commentary notes LITE shares have nearly doubled in the past month as AI optics demand, OCS backlog and growing CPO orders drive accelerating revenue and margin expansion — fueling momentum and fresh upward analyst attention. Lumentum Rises 99% in a Month: Are the Shares Still a Buy?
• Positive Sentiment: Macro/sector stories are rotating investor money beyond GPUs into AI infrastructure names; LITE appears on several “AI‑infrastructure” buy lists, increasing institutional interest and multiple expansion potential. Forget Nvidia, This Is the Stock to Buy For the AI Boom’s Next Leg Up
• Neutral Sentiment: Unusual options activity: traders bought roughly 13,981 call contracts (about +15% vs typical daily call volume) — a sign of speculative bullish positioning but not definitive proof of sustained buying.
• Neutral Sentiment: Relative comparisons vs. peers underline LITE’s stronger AI-driven revenue outlook versus some equipment vendors with slumping sales — useful context for positioning but not a direct catalyst. Lumentum vs. Amtech: Which Semiconductor Stock is the Better Buy?
• Negative Sentiment: Risk: the rally has produced a rich valuation and fast price moves; high expectations (and a stretched P/E) leave shares exposed to profit‑taking or any miss versus elevated forecasts.

Insider Transactions at Lumentum

In other news, insider Vincent Retort sold 3,441 shares of the firm’s stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $545.78, for a total value of $1,878,028.98. Following the transaction, the insider owned 95,975 shares in the company, valued at $52,381,235.50. This trade represents a 3.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Penny Herscher sold 4,000 shares of Lumentum stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $597.29, for a total value of $2,389,160.00. Following the transaction, the director directly owned 2,057 shares in the company, valued at approximately $1,228,625.53. The trade was a 66.04% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 60,473 shares of company stock valued at $35,186,972 over the last ninety days. 0.43% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in LITE. Vanguard Group Inc. increased its position in shares of Lumentum by 0.6% during the third quarter. Vanguard Group Inc. now owns 7,485,282 shares of the technology company’s stock valued at $1,217,930,000 after buying an additional 41,975 shares during the period. Hood River Capital Management LLC increased its holdings 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 acquiring an additional 994,551 shares during the period. Arrowstreet Capital Limited Partnership lifted its stake in Lumentum by 18.7% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company’s stock worth $683,661,000 after purchasing an additional 291,591 shares in the last quarter. Geode Capital Management LLC boosted its holdings in Lumentum by 9.6% in the 4th quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company’s stock valued at $521,563,000 after purchasing an additional 123,265 shares during the period. Finally, Situational Awareness LP grew its position 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 valued at $478,577,000 after purchasing an additional 880,800 shares in the last quarter. Institutional investors own 94.05% of the company’s stock.

Lumentum Stock Performance

NASDAQ LITE opened at $674.73 on Tuesday. The firm has a market cap of $48.18 billion, a P/E ratio of 206.97 and a beta of 1.51. The company has a quick ratio of 0.45, a current ratio of 0.61 and a debt-to-equity ratio of 0.06. The company’s 50 day moving average is $425.90 and its 200-day moving average is $277.51. Lumentum has a 12-month low of $45.65 and a 12-month high of $688.07.

Lumentum (NASDAQ:LITE) last released its quarterly earnings data on Tuesday, February 3rd. The technology company reported $1.67 earnings per share for the quarter, beating analysts’ consensus estimates 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 net margin of 11.95% and a return on equity of 17.27%. Lumentum’s revenue was up 65.5% compared to the same quarter last year. During the same period in the previous year, the business earned $0.42 EPS. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. Sell-side analysts predict that Lumentum will post 0.03 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on LITE shares. Rosenblatt Securities raised their price target on shares of Lumentum to $580.00 and gave the company a “buy” rating in a research report on Wednesday, February 4th. UBS Group raised their target price on Lumentum from $215.00 to $455.00 and gave the company a “neutral” rating in a research report on Wednesday, February 4th. Needham & Company LLC boosted their price target on shares of Lumentum to $550.00 and gave the stock a “buy” rating in a report on Wednesday, February 4th. Wall Street Zen downgraded shares of Lumentum from a “buy” rating to a “hold” rating in a report on Saturday, November 1st. Finally, Stifel Nicolaus boosted their target price on shares of Lumentum to $480.00 and gave the company a “buy” rating in a research note on Wednesday, February 4th. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, Lumentum has a consensus rating of “Moderate Buy” and a consensus target price of $458.00.

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.