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As of August 11, 2026, Lumentum Holdings Inc. (LITE) trades at $814.30. CleaRank Financial AI rates it Hold with a fair value of $814.49, in line with the current price. RSI at 49 is in neutral territory, and the price is below its 50-day average of $816.22.
Lumentum Holdings Inc. (LITE)
$814.30 0.7900 (0.10%)
Real Time Price
AI Analyst Consensus
55 / 100
Lumentum Holdings Inc. (LITE) is currently trading at $814.49, a price point that is above its 200-day and 20-day moving averages but below its 50-day moving average. The company operates within the Communication Equipment industry, a sector known for its cyclical nature and dependence on capital expenditures by telecommunications providers and enterprises. Despite a substantial market capitalization of $63.29 billion, Lumentum has demonstrated exceptional revenue growth of 90.1%, indicating strong demand for its products and services. However, this positive fundamental performance is significantly tempered by a concerning insider activity report. Insiders are net sellers, with over $95 million in sales and no reported purchases, signaling a potential lack of confidence from management regarding near-term stock appreciation. The neutral RSI reading further suggests a lack of strong directional momentum in the stock.
The company's high P/E ratio of 150.07, based on an EPS of $5.70, indicates that investors are paying a premium for its earnings, which could be a point of concern given the insider selling. While the revenue growth is impressive, the valuation metrics warrant careful consideration. The technical indicators are mixed, with the price trading above longer-term moving averages but below the shorter-term 50-day SMA, suggesting potential resistance. The neutral RSI and MACD values do not provide a clear bullish or bearish signal, implying a period of indecision or consolidation for LITE.
LITE Price Analysis
Market Metrics
Open
$812.50
Day Range
$788.00 to $821.35
Prev Close
$813.51
Volume
120.4K
52-Week Range
$101.61 to $1,085.68
Market Cap
$63.29B
Peer Benchmarking
Valuation vs Sector (Technology)
Performance vs XLK
Sector Position Analysis
The stock's valuation metrics position it within the sector's competitive landscape, reflecting its market standing and growth trajectory relative to industry peers.
LITE Analysis
Company's Health 3/5
AI Analyst Target +3.00% Upside
Target Price
$838.73
AI Technical Analysis
Lumentum Holdings Inc. (LITE) exhibits a mixed technical profile. The stock is trading above its 200-day Simple Moving Average (SMA) of $624.59 and its 20-day Exponential Moving Average (EMA) of $789.99, suggesting some underlying strength and a potential long-term uptrend. However, the current price of $814.49 is below its 50-day SMA of $816.22, indicating that the short-term momentum may be facing resistance. The Relative Strength Index (RSI) is at 48.82, which falls within the neutral territory, neither indicating overbought nor oversold conditions and suggesting a lack of strong momentum.
The MACD indicator is at 7.47, which is positive but close to zero, further supporting the notion of neutral momentum. The Commodity Channel Index (CCI) is at 29.61, also indicating a lack of strong trend. The Stochastic Oscillator at 64.20 suggests that the stock is neither overbought nor oversold. Overall, the technicals suggest that LITE is in a consolidation phase, with key support around the 50-day SMA and resistance potentially forming at higher levels if momentum shifts.
ProTips
- Monitor insider transaction filings closely for any shift from net selling to net buying, as this could signal a change in management's outlook.
- Given the high P/E ratio and insider selling, consider implementing a tighter stop-loss strategy to manage potential downside risk.
- The neutral RSI and MACD suggest that LITE may be coiling for a move; watch for a decisive break above the 50-day SMA with increased volume to confirm bullish momentum.
Key Catalysts
Bearish Heavy Insider Selling Pressure
Insiders have sold over $95 million worth of Lumentum Holdings Inc. stock with no reported purchases, indicating a potential lack of confidence in near-term stock appreciation and posing a bearish signal.
Source: Insider Filings Neutral Trading Below 50-Day SMA
Lumentum Holdings Inc. is currently trading below its 50-day SMA of $816.22, suggesting potential short-term resistance and a pause in its upward momentum.
Source: Technical Analysis Bullish Exceptional Revenue Growth
Lumentum Holdings Inc. has reported an impressive 90.1% revenue growth, significantly outperforming sector averages and indicating strong market demand for its products.
Source: Company Financials Neutral Neutral RSI Momentum
The Relative Strength Index (RSI) for Lumentum Holdings Inc. is at 48.82, indicating neutral momentum and suggesting the stock is neither overbought nor oversold, pointing towards a consolidation phase.
Source: Technical Analysis Market Outlook
The outlook for Lumentum Holdings Inc. (LITE) is cautiously optimistic, primarily driven by its exceptional revenue growth of 90.1% and its position in the technology sector. The stock's ability to trade above its 200-day SMA suggests a resilient long-term trend. However, the significant insider selling and the elevated P/E ratio of 150.07 present considerable headwinds. A base case scenario for the next 6-12 months would involve the stock consolidating around its current levels as it digests the insider selling and awaits clearer signals on sustained profitability and growth. A target price in the range of $800 to $850 seems plausible if the company can maintain its growth trajectory and stabilize insider sentiment.
Upside potential exists if Lumentum can continue to outperform revenue expectations and if insider selling subsides, signaling renewed confidence. Positive developments in its product pipeline or increased demand from key customers could also drive the stock higher. Conversely, a slowdown in revenue growth, continued heavy insider selling, or a broader market downturn could push the stock towards its 200-day SMA of $624.59. The neutral technical indicators suggest that a significant catalyst will be required to break the current consolidation pattern.
Key Statistics
| Market Cap | 63.29B |
| P/E Ratio | 150.07 |
| EPS (TTM) | 5.70 |
| Dividend Yield | 0.00% |
| 52 Week High | 1,085.68 |
| 52 Week Low | 101.61 |
Lumentum Holdings Inc. (LITE) presents a compelling growth story with a reported revenue growth of 90.1%, significantly outpacing the sector average of 10.0%. However, its current Price-to-Earnings (P/E) ratio stands at a substantial 150.07, based on an Earnings Per Share (EPS) of $5.70. This valuation is considerably higher than the sector average P/E of 25.5, suggesting that the market has high expectations for future growth and profitability, or that the stock is trading at a premium. The Price-to-Sales (P/S) ratio, while not explicitly provided, would likely also be elevated given the market cap and revenue figures.
The company's strong revenue growth is a positive indicator, but the high P/E ratio raises questions about its current valuation. While the sector average ROE is 15.0%, Lumentum's ROE is not provided, making a direct comparison difficult. The debt-to-equity ratio is also not provided, which would be crucial for assessing balance sheet strength. Given the significant revenue expansion, investors are betting on continued growth to justify the premium valuation. However, the lack of detailed profitability and balance sheet metrics in the provided data makes a comprehensive fundamental assessment challenging.
Earnings & Growth Analysis
Lumentum Holdings Inc. (LITE) has demonstrated exceptional revenue growth of 90.1%, which is a primary driver of investor interest. While specific earnings beats or misses for the latest quarter are not detailed, the company's reported EPS of $5.70 contributes to its high P/E ratio of 150.07. This suggests that the market is pricing in significant future earnings potential to justify the current valuation.
The trajectory of revenue growth is the most prominent financial metric available, indicating strong market demand for Lumentum's products. Without forward guidance or detailed earnings reports, it is difficult to assess the sustainability of this growth or the company's ability to translate revenue into consistent profits that align with its premium valuation. Investors should monitor future earnings calls for insights into management's outlook and any potential shifts in growth rates or profitability.
Key Risks
The most significant risk for Lumentum Holdings Inc. (LITE) stems from its insider transaction data, which shows heavy net selling with over $95 million in sales and no reported purchases. This heavy insider selling verdict from insiders suggests a potential lack of confidence in the stock's near-term prospects. Additionally, the company's high P/E ratio of 150.07, significantly above the sector average, presents a valuation risk, making the stock susceptible to sharp pullbacks if growth expectations are not met.
Technically, the stock is trading below its 50-day SMA, indicating potential short-term resistance and a possible shift in momentum. While the revenue growth is robust, any deceleration could exacerbate the valuation concerns and amplify the negative sentiment from insider selling.
Technical Indicators
| RSI (14) | 48.82 |
| MACD | 7.47 |
| SMA 50 | 816.22 |
| SMA 200 | 624.59 |
Technical Rating Neutral
RSI
Neutral
SMA Cross
Bullish
Price vs SMA
Bearish
MACD
Bullish
Golden Cross in effect with the 50-day SMA ($816.22) above the 200-day SMA ($624.59), price is trading below the 50-day SMA.
Market Correlations
How this stock moves relative to other assets
Based on 1 year of daily price data. Correlations may vary over different time periods.
S&P 500 (SPY) +0.53
Moderate correlation
Nasdaq 100 (QQQ) +0.59
Moderate correlation
Bitcoin (BTC) +0.01
Weak correlation
Gold (XAU) +0.08
Weak correlation
Check Custom Correlation
LITE Trade Plans
Specific entry, exit, and risk management levels
Select Your Trade Bias
Risk Tolerance
Conservative 2% Aggressive
Portfolio Value
$
Position Size: Enter portfolio size →
Entry Strategies (click to switch)
CONSERVATIVE
$806.16
Slight discount to current
Wait for small dip
AGGRESSIVE
$814.30
At current price
Enter now if confident
Risk Management
STOP LOSS
$724.57
MAX LOSS
-10.1%
Volatility-Adjusted Stop Loss
Calculated based on RSI (48.8) and current market volatility
Profit Targets (Based on Conservative Entry)
TARGET 1
$830.34
+3% (Conservative)
+2.0% (Aggressive)
TARGET 2
$846.46
+5% (Conservative)
+4.0% (Aggressive)
TARGET 3
$870.65
+8% (Conservative)
+6.9% (Aggressive)
Consider scaling out: Take 50% profit at Target 1, 30% at Target 2, let 20% run to Target 3
Calculate Your Trade
⚠️ High-Volatility Risk Disclaimer
LITE is classified as a high-volatility asset (Daily Vol: 6.75%). Aggressive price swings can lead to rapid capital loss. Liquidity risks may prevent exiting trades at desired prices. This AI-generated analysis is for educational purposes only and is not financial advice. Generated on August 11, 2026. Growth of $10,000
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Monte Carlo Projection (10yr)
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LITE Insider Trading Analysis
Source: SEC Form 4▲
Bought None
No open-market buys
▼
Sold $95.0M
46 Transactions
●
Insiders 17
Active Traders
$
Avg Transaction $2.1M
Large trades
| Date | Insider | Type | Shares | Value |
|---|