Market Analysts see Lumentum Holdings Inc. [LITE] falling to $99. Time to buy?

Lumentum Holdings Inc. [NASDAQ: LITE] gained 0.70% on the last trading session, reaching $75.13 price per share at the time.

Lumentum Holdings Inc. represents 75.00 million in outstanding shares, while the company has a total market value of $5.56 billion with the latest information. LITE stock price has been found in the range of $74.18 to $76.80.

If compared to the average trading volume of 1.38M shares, LITE reached a trading volume of 1308056 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Lumentum Holdings Inc. [LITE]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for LITE shares is $104.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on LITE stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

B. Riley FBR have made an estimate for Lumentum Holdings Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on September 24, 2020. The new note on the price target was released on July 23, 2020, representing the official price target for Lumentum Holdings Inc. stock. Previously, the target price had yet another drop from $102 to $87, while Goldman kept a Sell rating on LITE stock.

The Average True Range (ATR) for Lumentum Holdings Inc. is set at 3.09, with the Price to Sales ratio for LITE stock in the period of the last 12 months amounting to 3.31. The Price to Book ratio for the last quarter was 3.22, with the Price to Cash per share for the same quarter was set at 20.99. Price to Free Cash Flow for LITE in the course of the last twelve months was 10.69 with Quick ratio for the last quarter at 6.60.

Trading performance analysis for LITE stock

Lumentum Holdings Inc. [LITE] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 3.56. With this latest performance, LITE shares dropped by -12.64% in over the last four-week period, additionally plugging by 9.50% over the last 6 months – not to mention a rise of 46.60% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for LITE stock in for the last two-week period is set at 43.37, with the RSI for the last a single of trading hit 50.07, and the three-weeks RSI is set at 44.60 for Lumentum Holdings Inc. [LITE]. The present Moving Average for the last 50 days of trading for this stock 82.91, while it was recorded at 74.42 for the last single week of trading, and 79.22 for the last 200 days.

Lumentum Holdings Inc. [LITE]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Lumentum Holdings Inc. [LITE] shares currently have an operating margin of +12.89 and a Gross Margin at +37.43. Lumentum Holdings Inc.’s Net Margin is presently recorded at +8.07.

Return on Total Capital for LITE is now 8.20, given the latest momentum, and Return on Invested Capital for the company is 5.15. Return on Equity for this stock inclined to 8.35, with Return on Assets sitting at 4.51. When it comes to the capital structure of this company, Lumentum Holdings Inc. [LITE] has a Total Debt to Total Equity ratio set at 67.99. Additionally, LITE Total Debt to Total Capital is recorded at 40.47, with Total Debt to Total Assets ending up at 36.12. Long-Term Debt to Equity for the company is recorded at 67.34, with the Long-Term Debt to Total Capital now at 40.09.

Reflecting on the efficiency of the workforce at the company, Lumentum Holdings Inc. [LITE] managed to generate an average of $24,758 per employee. Receivables Turnover for the company is 6.46 with a Total Asset Turnover recorded at a value of 0.56.Lumentum Holdings Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 6.60 and a Current Ratio set at 7.20.

Lumentum Holdings Inc. [LITE]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Lumentum Holdings Inc. posted 1.44/share EPS, while the average EPS was predicted by analysts to be reported at 1.2/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 20.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for LITE. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Lumentum Holdings Inc. go to 14.60%.

An analysis of insider ownership at Lumentum Holdings Inc. [LITE]

There are presently around $5,339 million, or 95.40% of LITE stock, in the hands of institutional investors. The top three institutional holders of LITE stocks are: WELLINGTON MANAGEMENT GROUP LLP with ownership of 10,310,041, which is approximately -0.188% of the company’s market cap and around 0.90% of the total institutional ownership; VANGUARD GROUP INC, holding 7,064,106 shares of the stock with an approximate value of $530.73 million in LITE stocks shares; and BLACKROCK INC., currently with $502.26 million in LITE stock with ownership of nearly -27.169% of the company’s market capitalization.

Positions in Lumentum Holdings Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 242 institutional holders increased their position in Lumentum Holdings Inc. [NASDAQ:LITE] by around 12,250,866 shares. Additionally, 189 investors decreased positions by around 12,231,799 shares, while 62 investors held positions by with 46,584,683 shares. The mentioned changes placed institutional holdings at 71,067,348 shares, according to the latest SEC report filing. LITE stock had 104 new institutional investments in for a total of 4,011,223 shares, while 50 institutional investors sold positions of 1,421,134 shares during the same period.

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