Lumentum (NASDAQ:LITE) Shares Gap Up - Should You Buy?

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report)'s stock price gapped up before the market opened on Monday . The stock had previously closed at $66.61, but opened at $70.51. Lumentum shares last traded at $71.69, with a volume of 208,528 shares.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on LITE shares. Morgan Stanley dropped their price objective on shares of Lumentum from $83.00 to $81.00 and set an "equal weight" rating on the stock in a research report on Friday, January 31st. Jefferies Financial Group started coverage on shares of Lumentum in a research note on Friday, February 21st. They issued a "buy" rating on the stock. BNP Paribas raised Lumentum from a "neutral" rating to an "outperform" rating and set a $92.00 price target on the stock in a report on Tuesday, March 11th. B. Riley increased their target price on Lumentum from $62.00 to $75.00 and gave the company a "neutral" rating in a report on Friday, February 7th. Finally, Northland Securities lifted their price objective on Lumentum from $60.00 to $70.00 and gave the company a "market perform" rating in a research note on Friday, February 7th. Two research analysts have rated the stock with a sell rating, four have given a hold rating, nine have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, Lumentum presently has a consensus rating of "Moderate Buy" and an average target price of $87.40.

Lumentum Stock Down 2.7 %

The business has a 50-day simple moving average of $75.92 and a two-hundred day simple moving average of $75.88. The company has a quick ratio of 3.60, a current ratio of 4.76 and a debt-to-equity ratio of 2.94. The company has a market cap of $4.31 billion, a price-to-earnings ratio of -8.12 and a beta of 1.03.

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

Insider Activity

In related news, CFO Wajid Ali sold 2,172 shares of the business's stock in a transaction that occurred on Tuesday, February 18th. The shares were sold at an average price of $78.34, for a total transaction of $170,154.48. Following the completion of the sale, the chief financial officer now directly owns 51,976 shares of the company's stock, 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 SEC, which is available at this link. 0.19% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. California State Teachers Retirement System raised its stake in Lumentum by 0.4% during the 4th quarter. California State Teachers Retirement System now owns 64,170 shares of the technology company's stock worth $5,387,000 after buying an additional 251 shares during the period. CWC Advisors LLC. acquired a new stake in shares of Lumentum in the fourth quarter valued at about $201,000. Virtue Capital Management LLC bought a new stake in Lumentum during the fourth quarter worth about $899,000. Woodline Partners LP boosted its position in Lumentum by 377.7% during the fourth quarter. Woodline Partners LP now owns 282,055 shares of the technology company's stock valued at $23,679,000 after purchasing an additional 223,011 shares during the last quarter. Finally, Two Sigma Advisers LP increased its position in shares of Lumentum by 30.5% during the 4th quarter. Two Sigma Advisers LP now owns 243,600 shares of the technology company's stock worth $20,450,000 after purchasing an additional 57,000 shares during the last quarter. Institutional investors and hedge funds own 94.05% of the company's stock.

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.