Analysts’ ratings for Lumentum Holdings LITE over the last quarter vary from bullish to bearish, as provided by 15 analysts.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 5 | 4 | 2 | 0 |
| Last 30D | 0 | 2 | 1 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 0 | 0 | 0 |
| 3M Ago | 4 | 1 | 3 | 2 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $66.87, a high estimate of $115.00, and a low estimate of $40.00. This upward trend is apparent, with the current average reflecting a 19.69% increase from the previous average price target of $55.87.
Interpreting Analyst Ratings: A Closer Look
The standing of Lumentum Holdings among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Tim Savageaux | Northland Capital Markets | Raises | Market Perform | $60.00 | $45.00 |
| Simon Leopold | Raymond James | Raises | Outperform | $100.00 | $70.00 |
| Christopher Rolland | Susquehanna | Raises | Positive | $115.00 | $80.00 |
| Christopher Rolland | Susquehanna | Raises | Positive | $80.00 | $70.00 |
| Simon Leopold | Raymond James | Raises | Outperform | $70.00 | $55.00 |
| Tim Savageaux | Northland Capital Markets | Raises | Market Perform | $45.00 | $40.00 |
| Vivek Arya | B of A Securities | Raises | Underperform | $50.00 | $45.00 |
| George Notter | Jefferies | Raises | Buy | $65.00 | $53.00 |
| Richard Shannon | Craig-Hallum | Raises | Buy | $70.00 | $65.00 |
| Meta Marshall | Morgan Stanley | Raises | Equal-Weight | $54.00 | $50.00 |
| Tom O’Malley | Barclays | Raises | Underweight | $40.00 | $38.00 |
| Dave Kang | B. Riley Securities | Raises | Neutral | $50.00 | $40.00 |
| Mike Genovese | Rosenblatt | Raises | Buy | $69.00 | $65.00 |
| Alex Henderson | Needham | Raises | Buy | $70.00 | $65.00 |
| Samik Chatterjee | JP Morgan | Raises | Overweight | $65.00 | $57.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they ‘Maintain’, ‘Raise’ or ‘Lower’ their stance, it reflects their reaction to recent developments related to Lumentum Holdings. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from ‘Outperform’ to ‘Underperform’. These ratings convey expectations for the relative performance of Lumentum Holdings compared to the broader market.
- Price Targets: Analysts predict movements in price targets, offering estimates for Lumentum Holdings’s future value. Examining the current and prior targets offers insights into analysts’ evolving expectations.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Lumentum Holdings’s market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on Lumentum Holdings analyst ratings.
Discovering Lumentum Holdings: A Closer Look
Lumentum Holdings Inc is a California-based technology firm. The company provides two types of optical and photonic products: optical components that are used in telecommunications networking equipment, and commercial lasers for manufacturing, inspection, and life-science lab uses. Its segments are Optical Communications and Commercial Lasers. The firm is also expanding into new optical applications, such as 3-D sensing laser diode for consumer electronics. It generates maximum revenue from the OpComms segment. The OpComms segment products include a wide range of components, modules, and subsystems to support customers including carrier networks for access (local), metro (intracity), long-haul, and submarine (undersea) applications.
Lumentum Holdings: Financial Performance Dissected
Market Capitalization Analysis: Falling below industry benchmarks, the company’s market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Negative Revenue Trend: Examining Lumentum Holdings’s financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -16.86% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Lumentum Holdings’s net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -81.9%, the company may face hurdles in effective cost management.
Return on Equity (ROE): The company’s ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -23.66%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Lumentum Holdings’s ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -6.21%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Lumentum Holdings’s debt-to-equity ratio stands notably higher than the industry average, reaching 2.67. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Understanding the Relevance of Analyst Ratings
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
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