Is Lumentum Holdings Stock a Good Investment?
Lumentum Holdings Investment Advice | LITE |
- Examine Lumentum Holdings' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Lumentum Holdings' leadership team and their track record. Good management can help Lumentum Holdings navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Communications Equipment space and any emerging trends that could impact Lumentum Holdings' business and its evolving consumer preferences.
- Compare Lumentum Holdings' performance and market position to its competitors. Analyze how Lumentum Holdings is positioned in terms of product offerings, innovation, and market share.
- Check if Lumentum Holdings pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Lumentum Holdings' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Lumentum Holdings stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Lumentum Holdings is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Lumentum Holdings Stock
Researching Lumentum Holdings' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 99.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 0.97. Lumentum Holdings recorded a loss per share of 7.72. The entity had not issued any dividends in recent years.
To determine if Lumentum Holdings is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Lumentum Holdings' research are outlined below:
| Lumentum Holdings generated a negative expected return over the last 90 days | |
| Lumentum Holdings has high historical volatility and very poor performance | |
| The company reported the previous year's revenue of 1.36 B. Net Loss for the year was (546.5 M) with profit before overhead, payroll, taxes, and interest of 381.2 M. | |
| Over 99.0% of the company shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: The Party Isnt Over Top Analyst Selects 2 Top Optical Transceiver Stocks to Buy |
Lumentum Holdings Quarterly Good Will |
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Lumentum Holdings uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Lumentum Holdings. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Lumentum Holdings' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 8th of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 15th of August 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 30th of June 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Lumentum Holdings' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Lumentum Holdings' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-08-14 | 2024-06-30 | 0.03 | 0.06 | 0.03 | 100 | ||
2024-05-06 | 2024-03-31 | 0.26 | 0.29 | 0.03 | 11 | ||
2016-02-04 | 2015-12-31 | 0.28 | 0.31 | 0.03 | 10 | ||
2015-11-10 | 2015-09-30 | 0.23 | 0.26 | 0.03 | 13 | ||
2017-08-09 | 2017-06-30 | 0.34 | 0.39 | 0.05 | 14 | ||
2016-10-27 | 2016-09-30 | 0.44 | 0.49 | 0.05 | 11 | ||
2016-08-09 | 2016-06-30 | 0.36 | 0.41 | 0.05 | 13 | ||
2024-11-07 | 2024-09-30 | 0.12 | 0.18 | 0.06 | 50 |
Lumentum Holdings Target Price Consensus
Lumentum target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Lumentum Holdings' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 16 | Buy |
Most Lumentum analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Lumentum stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Lumentum Holdings, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationLumentum Holdings Target Price Projection
Lumentum Holdings' current and average target prices are 70.39 and 90.38, respectively. The current price of Lumentum Holdings is the price at which Lumentum Holdings is currently trading. On the other hand, Lumentum Holdings' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Lumentum Holdings Market Quote on 26th of February 2025
Target Price
Analyst Consensus On Lumentum Holdings Target Price
Lumentum Holdings Analyst Ratings
Lumentum Holdings' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Lumentum Holdings stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Lumentum Holdings' financials, market performance, and future outlook by experienced professionals. Lumentum Holdings' historical ratings below, therefore, can serve as a valuable tool for investors.Know Lumentum Holdings' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Lumentum Holdings is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Lumentum Holdings backward and forwards among themselves. Lumentum Holdings' institutional investor refers to the entity that pools money to purchase Lumentum Holdings' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Barrow Hanley Mewhinney & Strauss Llc | 2024-12-31 | 1.1 M | Schroder Investment Management Group | 2024-12-31 | 1 M | Dimensional Fund Advisors, Inc. | 2024-12-31 | 1 M | Fuller & Thaler Asset Management Inc | 2024-12-31 | 838.3 K | Bank Of New York Mellon Corp | 2024-12-31 | 829.4 K | Norges Bank | 2024-12-31 | 821.5 K | Charles Schwab Investment Management Inc | 2024-12-31 | 738 K | Northern Trust Corp | 2024-12-31 | 700.9 K | Fisher Asset Management, Llc | 2024-12-31 | 687.3 K | Vanguard Group Inc | 2024-12-31 | 7.4 M | Fmr Inc | 2024-12-31 | 6.8 M |
Lumentum Holdings' market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 5.01 B.Market Cap |
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Lumentum Holdings' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.16 | 0.17 | |
| Return On Capital Employed | 0.10 | 0.11 | |
| Return On Assets | 0.16 | 0.16 | |
| Return On Equity | 0.26 | 0.27 |
Determining Lumentum Holdings' profitability involves analyzing its financial statements and using various financial metrics to determine if Lumentum Holdings is a good buy. For example, gross profit margin measures Lumentum Holdings' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Lumentum Holdings' profitability and make more informed investment decisions.
Lumentum Holdings' Earnings Breakdown by Geography
Please note, the presentation of Lumentum Holdings' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Lumentum Holdings' management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Lumentum Holdings' management manipulating its earnings.
Evaluate Lumentum Holdings' management efficiency
Lumentum Holdings has return on total asset (ROA) of (0.0469) % which means that it has lost $0.0469 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.4863) %, meaning that it created substantial loss on money invested by shareholders. Lumentum Holdings' management efficiency ratios could be used to measure how well Lumentum Holdings manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to 0.17. The current year's Return On Capital Employed is expected to grow to 0.11. At present, Lumentum Holdings' Intangible Assets are projected to increase significantly based on the last few years of reporting. The current year's Return On Tangible Assets is expected to grow to 0.17, whereas Non Currrent Assets Other are forecasted to decline to about 9.3 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 15.44 | 12.23 | |
| Tangible Book Value Per Share | 15.15 | 9.52 | |
| Enterprise Value Over EBITDA | 15.77 | 14.98 | |
| Price Book Value Ratio | 3.75 | 3.58 | |
| Enterprise Value Multiple | 15.77 | 14.98 | |
| Price Fair Value | 3.75 | 3.58 | |
| Enterprise Value | 3.8 B | 3.7 B |
Understanding the operational decisions made by Lumentum Holdings management offers insights into its financial robustness. This evaluation is crucial for assessing the stock's investment potential.
Beta 0.941 |
Basic technical analysis of Lumentum Stock
As of the 26th of February, Lumentum Holdings secures the Risk Adjusted Performance of (0.01), standard deviation of 4.19, and Mean Deviation of 2.84. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Lumentum Holdings, as well as the relationship between them. Please verify Lumentum Holdings variance and value at risk to decide if Lumentum Holdings is priced some-what accurately, providing market reflects its recent price of 70.39 per share. Given that Lumentum Holdings has information ratio of (0.03), we recommend you to check Lumentum Holdings's last-minute market performance to make sure the company can sustain itself at a future point.Lumentum Holdings' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Lumentum Holdings insiders, such as employees or executives, is commonly permitted as long as it does not rely on Lumentum Holdings' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Lumentum Holdings insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Lumentum Holdings' Outstanding Corporate Bonds
Lumentum Holdings issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Lumentum Holdings uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Lumentum bonds can be classified according to their maturity, which is the date when Lumentum Holdings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US550241AA19 Corp BondUS550241AA19 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View |
Understand Lumentum Holdings' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Lumentum Holdings' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.01) | |||
| Market Risk Adjusted Performance | (0.1) | |||
| Mean Deviation | 2.84 | |||
| Coefficient Of Variation | (3,783) | |||
| Standard Deviation | 4.19 | |||
| Variance | 17.56 | |||
| Information Ratio | (0.03) | |||
| Jensen Alpha | (0.13) | |||
| Total Risk Alpha | (0.15) | |||
| Treynor Ratio | (0.11) | |||
| Maximum Drawdown | 29.45 | |||
| Value At Risk | (4.62) | |||
| Potential Upside | 4.89 | |||
| Skewness | (2.27) | |||
| Kurtosis | 11.45 |
| Risk Adjusted Performance | (0.01) | |||
| Market Risk Adjusted Performance | (0.1) | |||
| Mean Deviation | 2.84 | |||
| Coefficient Of Variation | (3,783) | |||
| Standard Deviation | 4.19 | |||
| Variance | 17.56 | |||
| Information Ratio | (0.03) | |||
| Jensen Alpha | (0.13) | |||
| Total Risk Alpha | (0.15) | |||
| Treynor Ratio | (0.11) | |||
| Maximum Drawdown | 29.45 | |||
| Value At Risk | (4.62) | |||
| Potential Upside | 4.89 | |||
| Skewness | (2.27) | |||
| Kurtosis | 11.45 |
Consider Lumentum Holdings' intraday indicators
Lumentum Holdings intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Lumentum Holdings stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 188487.0 | |||
| Daily Balance Of Power | (0.46) | |||
| Rate Of Daily Change | 0.97 | |||
| Day Median Price | 69.9 | |||
| Day Typical Price | 70.06 | |||
| Price Action Indicator | (0.55) | |||
| Period Momentum Indicator | (2.08) | |||
| Relative Strength Index | 42.92 |
Lumentum Holdings Corporate Filings
F4 | 24th of February 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 14th of February 2025 Other Reports | ViewVerify | |
| 13th of February 2025 Other Reports | ViewVerify | |
F3 | 11th of February 2025 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
Lumentum Stock media impact
Far too much social signal, news, headlines, and media speculation about Lumentum Holdings that are available to investors today. That information is available publicly through Lumentum media outlets and privately through word of mouth or via Lumentum internal channels. However, regardless of the origin, that massive amount of Lumentum data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Lumentum Holdings news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Lumentum Holdings relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Lumentum Holdings' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Lumentum Holdings alpha.
Lumentum Holdings Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Lumentum Holdings can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Lumentum Holdings Historical Investor Sentiment
Investor biases related to Lumentum Holdings' public news can be used to forecast risks associated with an investment in Lumentum. The trend in average sentiment can be used to explain how an investor holding Lumentum can time the market purely based on public headlines and social activities around Lumentum Holdings. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Lumentum Holdings' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Lumentum Holdings and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Lumentum Holdings news discussions. The higher the estimate score, the more favorable the investor's outlook on Lumentum Holdings.
Lumentum Holdings Corporate Management
| Jae Esq | General VP | Profile | |
| Misha Rozenberg | Executive Officer | Profile | |
| Vincent Retort | Executive Development | Profile | |
| Andrea Milani | VP Sales | Profile | |
| Matthew Sepe | Chief Accounting Officer | Profile | |
| Ralph Loura | VP Officer | Profile | |
| Caroline Pan | Senior Officer | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lumentum Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. For information on how to trade Lumentum Stock refer to our How to Trade Lumentum Stock guide.You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lumentum Holdings. If investors know Lumentum will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lumentum Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.711 | Earnings Share (7.72) | Revenue Per Share | Quarterly Revenue Growth 0.097 | Return On Assets |
The market value of Lumentum Holdings is measured differently than its book value, which is the value of Lumentum that is recorded on the company's balance sheet. Investors also form their own opinion of Lumentum Holdings' value that differs from its market value or its book value, called intrinsic value, which is Lumentum Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lumentum Holdings' market value can be influenced by many factors that don't directly affect Lumentum Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Lumentum Holdings' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Lumentum Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lumentum Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.