Lumentum (NASDAQ:LITE) Sets New 1-Year High – Still a Buy?

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price reached a new 52-week high during trading on Tuesday . The stock traded as high as $97.50 and last traded at $94.29, with a volume of 278021 shares trading hands. The stock had previously closed at $94.41.

Analysts Set New Price Targets

A number of analysts have recently commented on LITE shares. Needham & Company LLC reissued a “buy” rating and set a $110.00 price target on shares of Lumentum in a research note on Thursday, January 9th. Rosenblatt Securities lifted their target price on shares of Lumentum from $69.00 to $110.00 and gave the stock a “buy” rating in a research report on Friday, November 8th. Raymond James upped their price target on shares of Lumentum from $70.00 to $100.00 and gave the company an “outperform” rating in a research report on Friday, November 8th. Morgan Stanley lifted their price target on shares of Lumentum from $76.00 to $83.00 and gave the stock an “equal weight” rating in a report on Tuesday, December 17th. Finally, Susquehanna increased their price objective on Lumentum from $80.00 to $115.00 and gave the company a “positive” rating in a report on Friday, November 8th. Two research analysts have rated the stock with a sell rating, three have given a hold rating and nine have given a buy rating to the company’s stock. According to MarketBeat, Lumentum has a consensus rating of “Moderate Buy” and a consensus price target of $81.92.

Lumentum Trading Up 3.0 %

The company has a current ratio of 5.36, a quick ratio of 4.04 and a debt-to-equity ratio of 2.87. The business has a fifty day simple moving average of $87.34 and a 200-day simple moving average of $69.14.

Lumentum (NASDAQ:LITE) last issued its earnings results on Thursday, November 7th. The technology company reported ($0.35) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.13 by ($0.48). Lumentum had a negative return on equity of 6.79% and a negative net margin of 40.70%. The company had revenue of $336.90 million for the quarter, compared to the consensus estimate of $326.94 million. During the same period in the prior year, the company earned ($0.10) earnings per share. As a group, sell-side analysts forecast that Lumentum Holdings Inc. will post -0.02 EPS for the current year.

Insider Activity

In other Lumentum news, CAO Matthew Joseph Sepe sold 8,172 shares of the business’s stock in a transaction on Wednesday, November 13th. The shares were sold at an average price of $87.60, for a total transaction of $715,867.20. Following the completion of the sale, the chief accounting officer now owns 21,138 shares in the company, valued at approximately $1,851,688.80. The trade was a 27.88 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Harold L. Covert sold 15,000 shares of the firm’s stock in a transaction on Tuesday, November 12th. The shares were sold at an average price of $87.17, for a total transaction of $1,307,550.00. Following the completion of the transaction, the director now directly owns 8,761 shares in the company, valued at $763,696.37. This trade represents a 63.13 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 101,797 shares of company stock worth $8,881,428 in the last three months. Company insiders own 0.19% of the company’s stock.

Hedge Funds Weigh In On Lumentum

Hedge funds have recently added to or reduced their stakes in the stock. Robeco Institutional Asset Management B.V. purchased a new position in shares of Lumentum during the fourth quarter valued at approximately $646,000. R Squared Ltd bought a new position in Lumentum during the 4th quarter valued at $86,000. First Citizens Bank & Trust Co. boosted its holdings in Lumentum by 13.6% during the 4th quarter. First Citizens Bank & Trust Co. now owns 4,647 shares of the technology company’s stock worth $390,000 after acquiring an additional 558 shares during the last quarter. Zweig DiMenna Associates LLC bought a new stake in shares of Lumentum in the 4th quarter worth $7,052,000. Finally, Crossmark Global Holdings Inc. raised its holdings in shares of Lumentum by 4.0% in the fourth quarter. Crossmark Global Holdings Inc. now owns 4,350 shares of the technology company’s stock valued at $365,000 after purchasing an additional 168 shares during the last quarter. Institutional investors and hedge funds own 94.05% of the company’s stock.

About Lumentum

Lumentum Holdings Inc manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables.