Lumentum (NASDAQ:LITE) Hits New 1-Year High – Should You Buy?

Lumentum Holdings Inc. (NASDAQ:LITE)’s stock price reached a new 52-week high during trading on Wednesday . The company traded as high as $93.96 and last traded at $93.91, with a volume of 734830 shares. The stock had previously closed at $88.70.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the stock. Bank of America lifted their price target on shares of Lumentum from $45.00 to $50.00 and gave the company an “underperform” rating in a research report on Thursday, August 15th. JPMorgan Chase & Co. upped their target price on Lumentum from $57.00 to $65.00 and gave the company an “overweight” rating in a research report on Monday, August 12th. Morgan Stanley raised their price target on Lumentum from $61.00 to $76.00 and gave the stock an “equal weight” rating in a research report on Thursday, November 14th. Raymond James increased their price objective on shares of Lumentum from $70.00 to $100.00 and gave the stock an “outperform” rating in a research note on Friday, November 8th. Finally, Jefferies Financial Group boosted their target price on shares of Lumentum from $53.00 to $65.00 and gave the company a “buy” rating in a research report on Thursday, August 15th. Three analysts have rated the stock with a sell rating, three have assigned a hold rating and eight have issued a buy rating to the company. Based on data from MarketBeat.com, Lumentum currently has a consensus rating of “Hold” and an average price target of $74.85.

Lumentum Price Performance

The company has a 50 day moving average price of $74.38 and a 200-day moving average price of $59.51. The company has a market cap of $6.36 billion, a price-to-earnings ratio of -11.19 and a beta of 0.95. The company has a quick ratio of 4.04, a current ratio of 5.36 and a debt-to-equity ratio of 2.87.

Insider Transactions at Lumentum

In other news, CFO Wajid Ali sold 29,887 shares of the stock in a transaction on Friday, November 29th. The shares were sold at an average price of $85.06, for a total transaction of $2,542,188.22. Following the completion of the sale, the chief financial officer now directly owns 56,492 shares in the company, valued at $4,805,209.52. This represents a 34.60 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Harold L. Covert sold 15,000 shares of the company’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 sale, 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 position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 101,797 shares of company stock worth $8,881,428. Company insiders own 0.19% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Quarry LP grew its stake in Lumentum by 85.5% during the third quarter. Quarry LP now owns 436 shares of the technology company’s stock worth $28,000 after purchasing an additional 201 shares during the period. Capital Performance Advisors LLP bought a new position in shares of Lumentum during the 3rd quarter worth approximately $33,000. Nomura Asset Management Co. Ltd. grew its position in shares of Lumentum by 67.5% during the 3rd quarter. Nomura Asset Management Co. Ltd. now owns 670 shares of the technology company’s stock worth $42,000 after buying an additional 270 shares during the period. Point72 DIFC Ltd bought a new stake in shares of Lumentum in the 2nd quarter valued at $36,000. Finally, GAMMA Investing LLC lifted its position in shares of Lumentum by 141.6% during the 3rd quarter. GAMMA Investing LLC now owns 894 shares of the technology company’s stock valued at $57,000 after acquiring an additional 524 shares during the period. 94.05% of the stock is owned by institutional investors.

Lumentum Company Profile

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.