Lumentum (NASDAQ:LITE) Shares Down 6.2% – Here’s Why

Lumentum Holdings Inc. (NASDAQ:LITE) shares dropped 6.2% during trading on Thursday . The stock traded as low as $60.21 and last traded at $60.02. Approximately 263,867 shares changed hands during trading, a decline of 84% from the average daily volume of 1,645,061 shares. The stock had previously closed at $64.02.

Wall Street Analysts Forecast Growth

LITE has been the subject of a number of research reports. Northland Securities raised their price target on shares of Lumentum from $60.00 to $70.00 and gave the company a “market perform” rating in a report on Friday, February 7th. Needham & Company LLC reaffirmed a “buy” rating and set a $110.00 price target on shares of Lumentum in a research note on Friday, February 7th. Jefferies Financial Group assumed coverage on Lumentum in a research report on Friday, February 21st. They issued a “buy” rating for the company. Raymond James raised their target price on shares of Lumentum from $94.00 to $96.00 and gave the company an “outperform” rating in a research note on Friday, February 7th. Finally, UBS Group raised their price target on Lumentum from $93.00 to $96.00 and gave the stock a “neutral” rating in a research report on Friday, February 7th. Two investment analysts have rated the stock with a sell rating, four have issued a hold rating and ten have assigned a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $88.33.

Lumentum Trading Down 6.0 %

The company has a debt-to-equity ratio of 2.94, a quick ratio of 3.60 and a current ratio of 4.76. The stock has a market capitalization of $4.16 billion, a price-to-earnings ratio of -7.79 and a beta of 1.03. The business has a fifty day simple moving average of $80.28 and a 200 day simple moving average of $75.17.

Lumentum (NASDAQ:LITE) last released its quarterly earnings results 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, research analysts expect that Lumentum Holdings Inc. will post 0.03 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Wajid Ali sold 2,172 shares of the company’s stock in a transaction dated 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 owns 51,976 shares of the company’s stock, valued at $4,071,799.84. This represents a 4.01 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Corporate insiders own 0.19% of the company’s stock.

Hedge Funds Weigh In On Lumentum

Several hedge funds and other institutional investors have recently made changes to their positions in LITE. Atom Investors LP bought a new position in Lumentum in the third quarter valued at approximately $4,127,000. Robeco Institutional Asset Management B.V. bought a new position in shares of Lumentum in the 4th quarter valued at $646,000. SBI Securities Co. Ltd. bought a new stake in shares of Lumentum during the 4th quarter worth $739,000. Two Sigma Advisers LP boosted its stake in Lumentum by 24.7% in the third quarter. Two Sigma Advisers LP now owns 186,600 shares of the technology company’s stock valued at $11,827,000 after buying an additional 37,000 shares in the last quarter. Finally, West Tower Group LLC bought a new position in shares of Lumentum in the third quarter worth about $444,000. 94.05% of the stock is currently owned by institutional investors and hedge funds.

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.