Lumentum (NASDAQ:LITE) Shares Gap Up - Time to Buy?

Shares of Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $51.27, but opened at $54.92. Lumentum shares last traded at $53.83, with a volume of 365,722 shares.

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. Barclays raised shares of Lumentum from an "underweight" rating to an "overweight" rating and lifted their price objective for the stock from $80.00 to $125.00 in a research report on Friday, January 17th. UBS Group increased their price target on shares of Lumentum from $93.00 to $96.00 and gave the company a "neutral" rating in a report on Friday, February 7th. Jefferies Financial Group assumed coverage on Lumentum in a research report on Friday, February 21st. They issued a "buy" rating on the stock. Northland Capmk raised Lumentum from a "hold" rating to a "strong-buy" rating in a report on Monday, April 7th. Finally, JPMorgan Chase & Co. dropped their target price on Lumentum from $105.00 to $73.00 and set an "overweight" rating for the company in a report on Thursday. Two investment analysts have rated the stock with a sell rating, three have given a hold rating, ten have assigned a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat, Lumentum currently has an average rating of "Moderate Buy" and an average target price of $87.93.

Lumentum Stock Performance

The firm has a market capitalization of $3.60 billion, a price-to-earnings ratio of -6.76 and a beta of 1.14. The company has a current ratio of 4.76, a quick ratio of 3.60 and a debt-to-equity ratio of 2.94. The stock's 50-day moving average is $64.26 and its 200-day moving average is $75.35.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings data on Thursday, February 13th. The technology company reported ($0.14) earnings per share for the quarter, missing the consensus estimate of $0.27 by ($0.41). Lumentum had a negative net margin of 36.98% and a negative return on equity of 7.25%. On average, analysts predict that Lumentum Holdings Inc. will post 0.03 EPS for the current fiscal year.

Insider Activity at Lumentum

In related news, CFO Wajid Ali sold 2,172 shares of the business's stock in a transaction on Tuesday, February 18th. The shares were sold at an average price of $78.34, for a total value of $170,154.48. Following the transaction, the chief financial officer now owns 51,976 shares in the company, valued at $4,071,799.84. The trade was a 4.01 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.19% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in LITE. Capital World Investors lifted its stake in Lumentum by 108.3% in the fourth quarter. Capital World Investors now owns 3,600,132 shares of the technology company's stock valued at $302,231,000 after buying an additional 1,871,572 shares during the period. Norges Bank acquired a new position in shares of Lumentum during the 4th quarter valued at $68,962,000. Nuveen Asset Management LLC boosted its stake in Lumentum by 98.9% during the fourth quarter. Nuveen Asset Management LLC now owns 1,228,371 shares of the technology company's stock worth $103,122,000 after acquiring an additional 610,938 shares in the last quarter. Balyasny Asset Management L.P. increased its stake in Lumentum by 419.1% in the fourth quarter. Balyasny Asset Management L.P. now owns 444,147 shares of the technology company's stock valued at $37,286,000 after purchasing an additional 583,330 shares in the last quarter. Finally, Capital Research Global Investors acquired a new position in shares of Lumentum during the fourth quarter valued at about $42,415,000. 94.05% of the stock is owned by institutional investors.

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.