Lumentum (NASDAQ:LITE) Shares Down 15.9% – Should You Sell?

Shares of Lumentum Holdings Inc. (NASDAQ:LITE) traded down 15.9% during trading on Thursday . The stock traded as low as $57.69 and last traded at $56.17. 1,041,417 shares were traded during mid-day trading, a decline of 59% from the average session volume of 2,549,353 shares. The stock had previously closed at $66.82.

Analysts Set New Price Targets

Several analysts have recently weighed in on the stock. Jefferies Financial Group assumed coverage on shares of Lumentum in a report on Friday, February 21st. They set a “buy” rating for the company. Raymond James raised shares of Lumentum from an “outperform” rating to a “strong-buy” rating and lowered their target price for the stock from $96.00 to $82.00 in a report on Monday, March 24th. B. Riley increased their price target on shares of Lumentum from $62.00 to $75.00 and gave the company a “neutral” rating in a research report on Friday, February 7th. Rosenblatt Securities reissued a “buy” rating and issued a $110.00 target price on shares of Lumentum in a research note on Friday, February 7th. Finally, Stifel Nicolaus raised their price objective on shares of Lumentum from $95.00 to $105.00 and gave the stock a “buy” rating in a report on Friday, February 7th. Two research analysts have rated the stock with a sell rating, four have given a hold rating, nine have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $87.40.

Lumentum Trading Down 20.1 %

The firm has a market capitalization of $3.70 billion, a P/E ratio of -6.92 and a beta of 1.14. The firm has a 50-day moving average of $73.29 and a 200-day moving average of $76.34. The company has a debt-to-equity ratio of 2.94, a quick ratio of 3.60 and a current ratio of 4.76.

Lumentum (NASDAQ:LITE) last released 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 net margin of 36.98% and a negative return on equity of 7.25%. On average, equities research analysts anticipate 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 stock in a transaction on Tuesday, February 18th. The stock was sold at an average price of $78.34, for a total transaction of $170,154.48. Following the sale, the chief financial officer now owns 51,976 shares in the company, valued at approximately $4,071,799.84. This represents a 4.01 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 0.19% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Lumentum

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LITE. Capital World Investors increased its holdings in Lumentum by 108.3% during 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. Alliancebernstein L.P. lifted its position in Lumentum by 1.4% during the 4th quarter. Alliancebernstein L.P. now owns 1,711,956 shares of the technology company’s stock worth $143,719,000 after acquiring an additional 23,136 shares during the period. Nuveen Asset Management LLC increased its holdings in Lumentum by 98.9% in the 4th quarter. Nuveen Asset Management LLC now owns 1,228,371 shares of the technology company’s stock worth $103,122,000 after buying an additional 610,938 shares during the period. Geode Capital Management LLC grew its position in Lumentum by 0.8% during the 4th quarter. Geode Capital Management LLC now owns 1,195,605 shares of the technology company’s stock worth $100,402,000 after purchasing an additional 9,442 shares during the period. Finally, Fuller & Thaler Asset Management Inc. raised its position in Lumentum by 8.1% during the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 838,289 shares of the technology company’s stock valued at $70,374,000 after acquiring an additional 62,937 shares in the last quarter. Institutional investors 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.