Lumentum (NASDAQ:LITE) Downgraded by Zacks Investment Research to Strong Sell

Share on StockTwits

Zacks Investment Research lowered shares of Lumentum (NASDAQ:LITE) from a hold rating to a strong sell rating in a research note released on Saturday, Zacks.com reports.

According to Zacks, “Lumentum Holdings Inc. is a manufacturer of innovative optical and photonic products. The Company’s operating segment consists of Optical Communications and Commercial Lasers. Optical Communications segment portfolio includes products used by Telecom and Datacom nanoelectromechanical systems and traditional as well as cloud/data center service providers. Commercial Lasers segment products serve its customers in markets and applications, such as manufacturing, biotechnology, graphics and imaging, remote sensing and precision machining. Lumentum Holdings Inc. is headquartered in Milpitas, California. “

LITE has been the topic of a number of other research reports. Barclays increased their price target on Lumentum from $60.00 to $65.00 and gave the company an overweight rating in a research note on Friday, August 9th. Northland Securities restated a buy rating and issued a $71.25 price target on shares of Lumentum in a research note on Monday, July 1st. B. Riley restated a buy rating and issued a $71.00 price target (up previously from $68.00) on shares of Lumentum in a research note on Friday, August 9th. Rosenblatt Securities restated a buy rating and issued a $80.00 price target on shares of Lumentum in a research note on Tuesday, May 7th. Finally, Jefferies Financial Group lowered their price objective on Lumentum from $75.00 to $60.00 and set a buy rating on the stock in a research report on Tuesday, May 21st. One research analyst has rated the stock with a sell rating, one has given a hold rating, fifteen have given a buy rating and two have given a strong buy rating to the stock. The stock presently has a consensus rating of Buy and an average target price of $69.13.

LITE opened at $59.47 on Friday. Lumentum has a 1-year low of $37.00 and a 1-year high of $69.95. The firm has a fifty day simple moving average of $55.04. The company has a current ratio of 4.53, a quick ratio of 3.76 and a debt-to-equity ratio of 0.56. The company has a market cap of $4.54 billion, a PE ratio of 18.02, a PEG ratio of 1.19 and a beta of 1.36.

Lumentum (NASDAQ:LITE) last posted its quarterly earnings results on Thursday, August 8th. The technology company reported $0.74 earnings per share for the quarter, beating analysts’ consensus estimates of $0.53 by $0.21. Lumentum had a positive return on equity of 18.19% and a negative net margin of 2.33%. The business had revenue of $404.60 million for the quarter, compared to analysts’ expectations of $383.54 million. During the same quarter in the prior year, the business earned $0.95 EPS. The firm’s revenue for the quarter was up 34.4% on a year-over-year basis. Analysts predict that Lumentum will post 3.58 earnings per share for the current year.

In other Lumentum news, SVP Judy G. Hamel sold 803 shares of the stock in a transaction on Thursday, August 8th. The stock was sold at an average price of $60.00, for a total transaction of $48,180.00. Following the transaction, the senior vice president now owns 42,510 shares in the company, valued at approximately $2,550,600. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.55% of the stock is owned by company insiders.

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Advisory Services Network LLC grew its holdings in shares of Lumentum by 83.6% during the 2nd quarter. Advisory Services Network LLC now owns 953 shares of the technology company’s stock worth $51,000 after purchasing an additional 434 shares in the last quarter. Tower Research Capital LLC TRC boosted its stake in Lumentum by 31.0% in the second quarter. Tower Research Capital LLC TRC now owns 1,633 shares of the technology company’s stock valued at $87,000 after buying an additional 386 shares in the last quarter. DekaBank Deutsche Girozentrale boosted its stake in Lumentum by 95.0% in the second quarter. DekaBank Deutsche Girozentrale now owns 2,919 shares of the technology company’s stock valued at $153,000 after buying an additional 1,422 shares in the last quarter. World Asset Management Inc acquired a new stake in Lumentum in the first quarter valued at about $202,000. Finally, Commerzbank Aktiengesellschaft FI acquired a new stake in Lumentum in the second quarter valued at about $202,000. 94.49% of the stock is currently 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 and Commercial Lasers. The Optical Communications segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and text data over high-capacity fiber optic cables.

Recommended Story: What is the NASDAQ?

Get a free copy of the Zacks research report on Lumentum (LITE)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Lumentum (NASDAQ:LITE)

Receive News & Ratings for Lumentum Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Lumentum and related companies with MarketBeat.com's FREE daily email newsletter.