Lumentum Holdings Inc. (LITE) Stock Analysis
Technology · Communication Equipment
Sell if holding. Analyst target reached at $892.86 — A.R:R is negative (-1.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Supplier: sole-source suppliers.
Lumentum is an optical and photonic products company serving cloud data centers, AI/ML infrastructure, telecom, consumer, and industrial markets through its Cloud & Networking and Industrial Tech segments. Revenue comes from optical chips, components, and modules sold to cloud... Read more
Sell if holding. Analyst target reached at $892.86 — A.R:R is negative (-1.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Supplier: sole-source suppliers. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.0/10, high confidence.
Passes 4/7 gates (clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and earnings proximity 5d<=7d. Suitability: aggressive.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHSuppliersole-source suppliers10-K Item 1A: 'some of our suppliers are our sole sources for certain materials, equipment and components'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
2 floor-breakers·1 ceiling hit
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $892.86 — A.R:R is negative (-1.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Supplier: sole-source suppliers. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $828.63. Score 5.0/10, high confidence.
Take-profit target: $940.80 (+5.6% upside). Prior stop was $828.63. Stop-loss: $828.63.
Concentration risk — Supplier: sole-source suppliers; Analyst target reached - limited upside remaining; Leverage penalty (D/E 3.9): -1.5.
Lumentum Holdings Inc. trades at a P/E of 250.2 (forward 52.5). TrendMatrix value score: 3.0/10. Verdict: Sell.
30 analysts cover LITE with a consensus score of 4.0/5. Average price target: $832.
What does Lumentum Holdings Inc. do?Lumentum is an optical and photonic products company serving cloud data centers, AI/ML infrastructure, telecom,...
Lumentum is an optical and photonic products company serving cloud data centers, AI/ML infrastructure, telecom, consumer, and industrial markets through its Cloud & Networking and Industrial Tech segments. Revenue comes from optical chips, components, and modules sold to cloud operators, network equipment manufacturers, and industrial OEMs with ~10,562 employees. It acquired Cloud Light Technology in November 2023 to strengthen AI/ML data center positioning.