Lumentum (LITE) Earns “Buy” Rating from Rosenblatt Securities

Lumentum (NASDAQ:LITE)‘s stock had its “buy” rating restated by analysts at Rosenblatt Securities in a research report issued on Tuesday, May 7th, AnalystRatings.com reports. They currently have a $80.00 price target on the technology company’s stock. Rosenblatt Securities’ price objective indicates a potential upside of 89.89% from the company’s previous close.

The analysts wrote, “We believe Lumentum’s earnings call supports our belief of strong demand in the telecom market for ROADM and pump lasers. In addition, we think Lumentum’s 3D sensing business increased its diversification as the company added Android clients. We believe Huawei contributed ~$10 million towards 3D sensing revenue. Although iPhone 3D sensing orders declined sequentially from C1Q to C2Q due to seasonality, which led to a q/q decline in 3D sensing revenues for LITE, we expect LITE’s 3D sensing business to rebound strongly in the second half of calendar year 2019. We also expect the iPhone to adopt new 3D sensing solutions with more VCSEL units in a smaller chipset in the 2nd half of 2019.””

Other analysts also recently issued research reports about the stock. TheStreet upgraded shares of Lumentum from a “c+” rating to a “b-” rating in a report on Wednesday, April 17th. BidaskClub downgraded shares of Lumentum from a “strong-buy” rating to a “buy” rating in a report on Friday, February 8th. MKM Partners raised their price objective on shares of Lumentum to $66.00 and gave the stock a “buy” rating in a report on Wednesday, February 6th. Barclays restated a “buy” rating and set a $52.00 price objective on shares of Lumentum in a report on Friday, January 18th. Finally, Zacks Investment Research upgraded shares of Lumentum from a “hold” rating to a “buy” rating and set a $51.00 target price for the company in a research note on Wednesday, January 16th. Two analysts have rated the stock with a sell rating, one has assigned a hold rating, sixteen have assigned a buy rating and two have issued a strong buy rating to the company. Lumentum has a consensus rating of “Buy” and an average target price of $67.16.

NASDAQ LITE traded up $0.08 during trading hours on Tuesday, reaching $42.13. 1,219,566 shares of the company were exchanged, compared to its average volume of 1,676,339. Lumentum has a 1 year low of $37.00 and a 1 year high of $69.95. The company has a debt-to-equity ratio of 0.55, a quick ratio of 3.20 and a current ratio of 3.96. The company has a market capitalization of $3.28 billion, a PE ratio of 13.00, a price-to-earnings-growth ratio of 0.97 and a beta of 0.68.

Lumentum (NASDAQ:LITE) last posted its quarterly earnings data on Tuesday, May 7th. The technology company reported $0.91 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.69 by $0.22. Lumentum had a net margin of 1.57% and a return on equity of 19.94%. The business had revenue of $433.00 million during the quarter, compared to the consensus estimate of $428.33 million. During the same quarter last year, the company posted $0.78 earnings per share. The firm’s quarterly revenue was up 44.8% compared to the same quarter last year. As a group, analysts forecast that Lumentum will post 3.17 EPS for the current fiscal year.

In other news, SVP Judy G. Hamel sold 1,429 shares of the firm’s stock in a transaction that occurred on Friday, May 10th. The shares were sold at an average price of $58.64, for a total value of $83,796.56. Following the completion of the transaction, the senior vice president now directly owns 44,793 shares in the company, valued at $2,626,661.52. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 0.55% of the stock is currently owned by company insiders.

Institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. increased its stake in shares of Lumentum by 2.8% in the third quarter. Vanguard Group Inc. now owns 5,608,582 shares of the technology company’s stock worth $336,234,000 after buying an additional 154,751 shares during the period. Ellis Investment Partners LLC increased its position in Lumentum by 5,816.5% during the 1st quarter. Ellis Investment Partners LLC now owns 1,488,472 shares of the technology company’s stock valued at $1,488,000 after purchasing an additional 1,463,314 shares during the period. Dimensional Fund Advisors LP increased its position in Lumentum by 9.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,233,118 shares of the technology company’s stock valued at $69,718,000 after purchasing an additional 101,741 shares during the period. Oregon Public Employees Retirement Fund increased its position in Lumentum by 4,834.3% during the 4th quarter. Oregon Public Employees Retirement Fund now owns 1,231,145 shares of the technology company’s stock valued at $29,000 after purchasing an additional 1,206,194 shares during the period. Finally, Northern Trust Corp increased its position in Lumentum by 5.1% during the 1st quarter. Northern Trust Corp now owns 1,218,391 shares of the technology company’s stock valued at $68,888,000 after purchasing an additional 59,395 shares during the period. Hedge funds and other institutional investors own 86.44% of the company’s stock.

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.

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Analyst Recommendations for Lumentum (NASDAQ:LITE)

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