Lumentum Holdings Inc. (NASDAQ: LITE) saw its shares drop by 2% on Wednesday, reaching a low of $1,082.44 before closing at $1,111.07. The trading volume was about 3.4 million shares, down 39% from its average daily volume of 5.5 million shares. The stock had previously closed at $1,133.40.
Several analysts recently weighed in on Lumentum. Bank of America lowered its price target from $1,100 to $1,000 and maintained a “neutral” rating. Rosenblatt Securities kept a “buy” rating with a $1,300 price target, while Wolfe Research reiterated an “outperform” rating. Weiss Ratings downgraded the stock from “hold (c-)” to “sell (d-)”, and UBS Group set a price target of $820. Overall, analysts have given Lumentum a consensus rating of “Moderate Buy” with an average price target of $1,078.75.
The company reported strong earnings for its most recent quarter, beating estimates with $3.23 earnings per share compared to the expected $2.97. Revenue was $1.01 billion, surpassing estimates of $987.70 million. However, Lumentum’s net margin was negative at 230.15%, and its return on equity was 26.34%. The company guided for Q1 2027 earnings between $4.05 and $4.35 per share.
Insider activity included CFO Wajid Ali selling 24,542 shares at $1,048.50 each, reducing his position by 24.64%. Insider Yuen Wupen also sold 307 shares at $945 each. Institutional investors have adjusted their holdings, with Financiere des Professionnels Fonds d'investissement inc. acquiring a new stake and others like Styrax Capital LP and Swiss National Bank increasing their positions.