Lumentum (NASDAQ:LITE) Shares Gap Down – What’s Next?

Lumentum Holdings Inc. (NASDAQ:LITE)’s share price gapped down prior to trading on Friday . The stock had previously closed at $92.67, but opened at $87.11. Lumentum shares last traded at $87.47, with a volume of 1,987,566 shares traded.

Analysts Set New Price Targets

Several brokerages have commented on LITE. Raymond James raised their price target on shares of Lumentum from $94.00 to $96.00 and gave the company an “outperform” rating in a research report on Friday. Needham & Company LLC restated a “buy” rating and set a $110.00 price target on shares of Lumentum in a research report on Friday. Rosenblatt Securities reiterated a “buy” rating and issued a $110.00 target price on shares of Lumentum in a research note on Friday. Barclays raised shares of Lumentum from an “underweight” rating to an “overweight” rating and upped their target price for the stock from $80.00 to $125.00 in a report on Friday, January 17th. Finally, UBS Group increased their target price on Lumentum from $93.00 to $96.00 and gave the stock a “neutral” rating in a research note on Friday. Two analysts have rated the stock with a sell rating, four have given a hold rating and nine have given a buy rating to the company’s stock. According to data from MarketBeat, Lumentum has an average rating of “Hold” and an average price target of $88.07.

Lumentum Price Performance

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 company has a market capitalization of $5.88 billion, a P/E ratio of -10.35 and a beta of 0.94. The firm has a fifty day moving average of $87.70 and a 200 day moving average of $71.27.

Lumentum (NASDAQ:LITE) last issued its quarterly earnings data on Thursday, February 13th. The technology company reported ($0.14) earnings per share for the quarter, missing analysts’ consensus estimates of $0.27 by ($0.41). Lumentum had a negative return on equity of 6.79% and a negative net margin of 40.70%. On average, equities research analysts anticipate that Lumentum Holdings Inc. will post -0.02 EPS for the current year.

Insiders Place Their Bets

In other news, CFO Wajid Ali sold 29,887 shares of the company’s stock in a transaction dated 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 transaction, the chief financial officer now owns 56,492 shares of the company’s stock, valued at approximately $4,805,209.52. This represents a 34.60 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Harold L. Covert sold 15,000 shares of the company’s stock in a transaction dated Tuesday, November 12th. The stock was 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 represents a 63.13 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 101,797 shares of company stock valued at $8,881,428 in the last ninety days. Insiders own 0.19% of the company’s stock.

Institutional Trading of Lumentum

Several hedge funds and other institutional investors have recently modified their holdings of LITE. Atreides Management LP grew its stake in Lumentum by 28.5% during the third quarter. Atreides Management LP now owns 1,691,017 shares of the technology company’s stock valued at $107,177,000 after acquiring an additional 375,389 shares in the last quarter. Geode Capital Management LLC lifted its stake in shares of Lumentum by 1.3% in the 3rd quarter. Geode Capital Management LLC now owns 1,186,163 shares of the technology company’s stock worth $75,198,000 after purchasing an additional 15,799 shares during the period. Charles Schwab Investment Management Inc. raised its stake in Lumentum by 5.3% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 738,155 shares of the technology company’s stock worth $46,784,000 after acquiring an additional 37,109 shares during the period. Fisher Asset Management LLC grew its holdings in Lumentum by 18.8% during the 4th quarter. Fisher Asset Management LLC now owns 687,311 shares of the technology company’s stock valued at $57,700,000 after buying an additional 108,740 shares in the last quarter. Finally, Pinnacle Associates Ltd. grew its holdings in shares of Lumentum by 50.4% in the third quarter. Pinnacle Associates Ltd. now owns 407,789 shares of the technology company’s stock valued at $25,846,000 after purchasing an additional 136,659 shares in the last quarter. Institutional investors 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.