Lumentum Holdings Inc. (LITE) Stock Analysis
Range Bound setup
Technology · Communication Equipment
Sell if holding. At $881.00, A.R:R 0.8:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Supplier: sole or limited source suppliers; Sector modifier (Technology): -0.8.
Lumentum Holdings is a provider of optical and photonic products operating in two segments: Cloud & Networking (optical transceivers, components, and modules for cloud/AI/telecom) and Industrial Tech (lasers for manufacturing, 3D sensing, and consumer applications). Revenue is... Read more
Sell if holding. At $881.00, A.R:R 0.8:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Supplier: sole or limited source suppliers; Sector modifier (Technology): -0.8. Chart setup: RSI 57 mid-range, Bollinger mid-band. Score 5.6/10, moderate confidence.
Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 86d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.
Recent Developments — Lumentum Holdings Inc.
Latest news
- Lumentum Holdings Stock (LITE) Opinions on AI Photonics Surge and YTD Gains - Quiver Quantitative — Quiver Quantitative positive
- Lumentum Holdings Inc. (NASDAQ:LITE) Sees Significant Decrease in Short Interest - MarketBeat — MarketBeat neutral
- Northland Raises its Price Target on Lumentum (LITE) to $1,000 - Yahoo Finance — Yahoo Finance positive
- Is 11.8% Fall In Lumentum (LITE) Stock A Buying Opportunity? - Trefis — Trefis positive
- Lumentum Holdings Inc (LITE) Stock Down 8.0% but Still Overvalued -- GF Score: 67/100 - GuruFocus — GuruFocus negative
Generated 2026-05-20T20:21:21Z.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHSuppliersole or limited source suppliers10-K Item 1A: 'some of our suppliers are our sole sources for certain materials, equipment and components. We depend on the timely and continued supply and quality of the materials, packages and components that our suppliers supply to us.'
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
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $881.00, A.R:R 0.8:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Supplier: sole or limited source suppliers; Sector modifier (Technology): -0.8. Chart setup: RSI 57 mid-range, Bollinger mid-band. Prior stop was $823.03. Score 5.6/10, moderate confidence.
Take-profit target: $994.22 (+12.3% upside). Prior stop was $823.03. Stop-loss: $823.03.
Concentration risk — Supplier: sole or limited source suppliers; Sector modifier (Technology): -0.8; Leverage penalty (D/E 1.1): -0.5.
Lumentum Holdings Inc. trades at a P/E of 169.4 (forward 53.9). TrendMatrix value score: 3.6/10. Verdict: Sell.
30 analysts cover LITE with a consensus score of 4.1/5. Average price target: $1105.
What does Lumentum Holdings Inc. do?Lumentum Holdings is a provider of optical and photonic products operating in two segments: Cloud & Networking (optical...
Lumentum Holdings is a provider of optical and photonic products operating in two segments: Cloud & Networking (optical transceivers, components, and modules for cloud/AI/telecom) and Industrial Tech (lasers for manufacturing, 3D sensing, and consumer applications). Revenue is generated from cloud data center operators, AI/ML infrastructure providers, network equipment manufacturers, and industrial OEMs; manufacturing spans six countries.