Lumentum Holdings Inc. (NASDAQ:LITE) has been downgraded by JP Morgan on November 13 which now rates the stock as Neutral compared with Overweight rating suggested in the past. Analysts at Stifel, started covering the stock on October 23 with a Buy rating. The stock won favor of JP Morgan analysts who expressed their confidence in it using an upgrade from Neutral to Overweight on October 11. Northland Capital, reiterated their call for Outperform, on October 01. On the other hand, they had set new target price to $90 versus $86.
Lumentum Holdings Inc. (LITE) hit an intraday high Thursday at $45.1. The shares finished at $44.73, after trading as low as $42.4 earlier in the session. It dropped -0.86% in recent trade and currently has a stock-market value of $2.83B. Trading activity significantly improved as the volume at ready counter increased to 3,288,086 shares versus 2,991,050 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,030,857 shares. The stock is now 20.89% above against its bear-market low of $37 on November 12, 2018. It has retreated -66.33% since it’s 52-week high of $74.4 reached in March. Now the market price is down -5.13% on the year and down -8.53% YTD.
LITE’s 50 day simple moving average (SMA 50) price is $52.31 and its 200-day simple moving average (SMA 200) price is $58.66. The company’s stock currently has a total float of 61.29M shares. Its weekly volatility is hovering around 4.62% and felt 5.91% volatility in price over a month. On the upside, the share price will test short term resistance at around $45.75. On a downside, the stock is likely to find some support, which begins at $43.05. The failure to get near-term support could push it to $41.38.
Separately, it has been reported that multiple insider activity took place at Lumentum Holdings Inc. (LITE). Director Herscher Penny sold 1,197 shares for $34,743 in transaction occurred on 2018/11/02. After making this transaction, the Director owns a direct stake of 63,357 shares, worth $1,554,054, as per the last closing price. On 2018/08/24 Sepe Matthew Joseph, Chief Accounting Officer at LITE, dumped 2,000 shares at an average price of $64.91 per share. The selling total is valued at $685,800.
Interim CFO, Coldren Christopher W. had divested 3,416 shares for $20,122 through a trade on 2018/08/23. Following this activity, the insider holds 219,854 shares worth $900,057 as of recent close. Wall Street’s most bullish Lumentum Holdings Inc. (NASDAQ:LITE) analysts are predicting the share price to blow past $88 per share during the next 12 months. The current median share price forecast by them is $60, suggesting that the stock could increase 34.14% in that time frame. The average price target of $66.25 calls for a nearly 48.11% increase in the stock price.
When looking at valuations, Lumentum Holdings Inc. (LITE) has a cheap P/E of 7.66x as compared to industry average of 17.33x. Moreover, it trades for 9.09 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.87x price/book and 2.08x price/sales. It’s also very liquid in the near term, with a current ratio of 5.5. The stock has a debt/capital of 0.35.
Shares of Lumentum Holdings Inc. (LITE) have dropped -17.4% since the company’s Jun-18 earnings report. Over the past 12 fiscal quarters, Lumentum Holdings Inc. (NASDAQ:LITE) has topped consensus earnings estimates in 9 quarters (75%), missed earnings in 2 quarters (16%), whereas at 1 occasion EPS met analyst expectations. LITE last reported earnings on November 01, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $1.31 per share, -95.37% change on the same period last year. That was better than consensus for $1.02. Revenue for the recent quarter stood at $354.1 million, up 46% on last year and above the $351.52 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $275.2 million to $310 million, which should be compared with $0 generated last year.