Take off with Lumentum Holdings Inc. (LITE): Get ready for trading

Lumentum Holdings Inc. (NASDAQ: LITE) stock jumped 0.23% on Monday to $48.36 against a previous-day closing price of $48.25. With 0.99 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.75 million shares. During the session, the Communication Equipment company that operates in wider Technology sector, reached to the highest price of $48.71 whereas the lowest price it dropped to was $47.54. The 52-week range on LITE shows that it touched its highest point at $75.86 and its lowest point at $42.00 during that stretch. It currently has a 1-year price target of $52.63. Beta for the stock currently stands at 1.06.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of LITE was down-trending over the past week, with a drop of -0.33%, but this was up by 4.68% over a month. Three-month performance dropped to -16.33% while six-month performance fell -3.22%. The stock lost -36.30% in the past year, while it has lost -7.30% so far this year. A look at the trailing 12-month EPS for LITE yields -1.92 with Next year EPS estimates of 4.06. For the next quarter, that number is 0.27. This implies an EPS growth rate of -171.90% for this year and 117.63% for next year. EPS is expected to grow by 20.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -18.90%.

Float and Shares Shorts:

At present, 68.30 million LITE shares are outstanding with a float of 66.32 million shares on hand for trading. On Aug 30, 2023, short shares totaled 9.65 million, which was 14.46% higher than short shares on Jul 30, 2023. In addition to Mr. Alan S. Lowe as the firm’s Pres, CEO & Director, Mr. Wajid Ali B.A., C.M.A., M.A., M.B.A. serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 100.85% of LITE’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 9.40% of LITE, in contrast to 66.45% held by mutual funds. Shares owned by individuals account for 36.96%. As the largest shareholder in LITE with 10.42% of the stake, The Vanguard Group, Inc. holds 6,948,850 shares worth 6,948,850. A second-largest stockholder of LITE, Fidelity Management & Research Co, holds 6,824,389 shares, controlling over 10.23% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in LITE, holding 5,636,242 shares or 8.45% stake. With a 3.32% stake in LITE, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 2,217,329 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.04% of LITE stock, is the second-largest Mutual Fund holder. It holds 2,029,718 shares valued at 109.87 million. Swedbank Robur Technology holds 3.00% of the stake in LITE, owning 2,000,000 shares worth 108.26 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 30, 2023, LITE reported revenue of $422.10M and operating income of $55.40M. The EBITDA in the recently reported quarter was $63.60M and diluted EPS was $0.49.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LITE since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With LITE analysts setting a high price target of $62.00 and a low target of $40.00, the average target price over the next 12 months is $52.96. Based on these targets, LITE could surge 28.21% to reach the target high and fall by -17.29% to reach the target low. Reaching the average price target will result in a growth of 9.51% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded LITE stock several times over the past three months with 5 Buys and 12 Sells. In these transactions, 24,811 shares were bought while 31,582 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 32 over the past year. The total number of shares bought during that period was 52,517 while 76,607 shares were sold.

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