Lumentum (LITE) Shares Gap Up After Strong Earnings

Lumentum Holdings Inc (NASDAQ:LITE) shares gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $52.94, but opened at $54.65. Lumentum shares last traded at $56.32, with a volume of 4732250 shares traded.

The technology company reported $1.31 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.02 by $0.29. The business had revenue of $354.00 million during the quarter, compared to analyst estimates of $351.21 million. Lumentum had a return on equity of 25.10% and a net margin of 19.86%. Lumentum’s revenue for the quarter was up 45.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.43 earnings per share.

LITE has been the subject of a number of recent analyst reports. Loop Capital dropped their price objective on Lumentum to $73.00 and set a “buy” rating for the company in a research note on Tuesday, August 7th. Stifel Nicolaus initiated coverage on Lumentum in a research note on Monday, October 22nd. They issued a “buy” rating and a $75.00 price objective for the company. JPMorgan Chase & Co. set a $80.00 price objective on Lumentum and gave the stock a “hold” rating in a research note on Tuesday, September 4th. BidaskClub lowered Lumentum from a “strong-buy” rating to a “buy” rating in a research note on Saturday, October 27th. Finally, ValuEngine lowered Lumentum from a “hold” rating to a “sell” rating in a research note on Friday, July 20th. Four analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and two have given a strong buy rating to the company. The company presently has an average rating of “Buy” and an average target price of $79.84.

In related news, SVP Judy G. Hamel sold 2,495 shares of the business’s stock in a transaction dated Wednesday, August 22nd. The stock was sold at an average price of $63.21, for a total value of $157,708.95. Following the sale, the senior vice president now directly owns 34,138 shares in the company, valued at $2,157,862.98. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Christopher W. Coldren sold 3,416 shares of the business’s stock in a transaction dated Thursday, August 23rd. The stock was sold at an average price of $64.36, for a total value of $219,853.76. The disclosure for this sale can be found here. Insiders sold 9,224 shares of company stock worth $584,653 over the last quarter. 0.55% of the stock is owned by company insiders.

Large investors have recently bought and sold shares of the stock. Fortaleza Asset Management Inc. purchased a new stake in shares of Lumentum in the second quarter worth about $110,000. Cerebellum GP LLC purchased a new stake in shares of Lumentum in the second quarter worth about $184,000. FNY Investment Advisers LLC purchased a new stake in shares of Lumentum in the second quarter worth about $190,000. CIBC World Markets Inc. purchased a new stake in shares of Lumentum in the first quarter worth about $213,000. Finally, LS Investment Advisors LLC lifted its position in shares of Lumentum by 95.1% in the second quarter. LS Investment Advisors LLC now owns 3,596 shares of the technology company’s stock worth $208,000 after buying an additional 1,753 shares in the last quarter.

The company has a quick ratio of 4.55, a current ratio of 5.27 and a debt-to-equity ratio of 0.36. The stock has a market cap of $3.47 billion, a PE ratio of 17.38, a P/E/G ratio of 0.82 and a beta of 0.18.

Lumentum Company Profile (NASDAQ:LITE)

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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