Lumentum stock: buy or sell?
July 15th, 2019
Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa.
Should I buy Lumentum stock?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
None of our preferred buy setups matches with Lumentum stock situation right now, hence this is not a suitable entry point.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Lumentum stock a buy?
Banks and financial institutions post stock ratings everyday.At Stocks2.com, we detected 15 ratings published for LITE stock in the last month. The general sentiment of these ratings is bullish for LITE stock, with 11 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-5-21||Piper Jaffray Companies||n/a||Overweight|
|2019-5-21||Jefferies Financial Group||n/a||Buy|
|2019-3-29||Jefferies Financial Group||Buy||Buy|
|2019-3-27||Morgan Stanley||Equal Weight||Overweight|
|2019-3-22||JPMorgan Chase & Co.||Neutral||Overweight|
|2019-3-18||Needham & Company LLC||n/a||Strong-Buy|
|2019-1-3||Needham & Company LLC||n/a||Strong-Buy|
|2019-1-24||Piper Jaffray Companies||n/a||Overweight|
Lumentum stock analysis
Lumentum shares decreased -0.33% to $53.67 today.
Shares of Lumentum decreased a disappointing -0.33% and closed at $53.67. Since price and SMA200d lines crossed up on June/27, LITE climbed $2.81 (5.52%). Since SMA100d and SMA200d crossed up on Jun 17th, LITE price climbed $7.54 per share (16.35%).
Lumentum shares remained constant -0.33% this week, ending at $53.67. Late May LITE plummed a dreadful -9.74% in just one week. Late June LITE climbed a super good 7.56% in just one week.
The downtrend marked by LITE has left consecutive falling peaks and bottoms. If the support holds the price, this might mark a double bottom configuration and create a flat-base to reverse this downtrend. Since late June when LITE stock price broke up the SMA40w line, it gained $4.30 (8.71%). Since late May when SMA20w and SMA40w crossed up, LITE price gained $9.26 per share (20.85%).
Lumentum stock price history
Lumentum IPO was on July 23rd, 2015 at $18.60 per share1. Since then, LITE stock surged a 188.50%, with a yearly average of 62.80%. If you had invested $1,000 in Lumentum stock in 2015, it would worth $1,885.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Lumentum stock historical price chart
LITE stock reached 52-week highs on August at $69.95, and all-time highs 2018-03-12 with a price of 74.4.
Lumentum stock price target is $67.00How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we found 13 price predictions for Lumentum stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-5-8||UBS Group||Set Price Target||n/a||$70.00||-|
|2019-5-21||Piper Jaffray Companies||Reiterates||$75.00||$68.00||-9.3%|
|2019-5-21||Jefferies Financial Group||Lowers Target||$75.00||$60.00||-20%|
|2019-3-29||Jefferies Financial Group||Reiterates||n/a||$70.00||-|
|2019-3-22||JPMorgan Chase & Co.||Upgrades||$50.00||$65.00||30%|
|2019-3-14||Raymond James||Raises Target||$75.00||$78.00||4%|
|2019-2-6||MKM Partners||Raises Target||n/a||$66.00||-|
|2019-1-3||Raymond James||Lowers Target||$87.00||$85.00||-2.3%|
|2019-1-24||Piper Jaffray Companies||Reiterates||$63.00||$59.00||-6.3%|
Financials and fundamental analysis
Earnings date and Earnings per ShareOn February, Lumentum didn't meet the estimates of the experts and posted a spooky EPS of $0.59 per share when experts were expecting $1.00.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2017, last anual turnover report draw a dazzling growth of 24.57% to $1,247.70 M USD. Likewise, its profit margin (compared to revenues) skyrocketed to 19.88%, that is $248.10 million. Lumentum fiscal year ends in June, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Lumentum TTM sales up to December 2018 were $1,327.70 and income $99.90 million dollars. When comparing this TTM figures with the last reported annuality, we can review Lumentum business evolution since June 2018: Annual sales up to December, compared to lastest yearly report, jumped a shining 6.41%. Regarding profit margin, Lumentum plunged -12.36% to 19.88%
|2013||$744 M||-||$-0.10 M-0.0%||-|
|2014||$796 M||6.99%||$4.10 M0.5%||-4,200.00%|
|2015||$837 M||5.12%||$-3.40 M-0.4%||-182.93%|
|2016||$903 M||7.87%||$9.30 M1.0%||-373.53%|
|2017||$1,002 M||10.92%||$-102.50 M-10.2%||-1,202.15%|
|2018||$1,248 M||24.57%||$248 M19.9%||-342.05%|
|TTM||$1,328 M||6.41%||$100 M7.5%||-59.73%|
Quarterly financial resultsLumentum reported $373.70 M in revenues for 2018-Q4, a 5.54% improvement compared to previous quarter. Reported quarter income marked $16.30 M with a profit margin of 4.36%. Profit margin slipped a -9.02% compared to previous quarter when profit margin was 13.39%. When comparing sales to same quarter last year, Lumentum sales marked a horrible loss and dropped a -7.64%. Looking back to recent quarterly results, Lumentum posted 3 negative quarters in a row.
|2017-Q1||$256 M||-||$-56 M-21.9%||-|
|2017-Q2||$223 M||-12.94%||$-55 M-24.7%||-1.96%|
|2017-Q3||$243 M||9.21%||$7 M2.9%||-112.93%|
|2017-Q4||$405 M||66.37%||$205 M50.6%||2,784.51%|
|2018-Q1||$299 M||-26.15%||$3 M0.9%||-98.68%|
|2018-Q2||$301 M||0.77%||$34 M11.1%||1,140.74%|
|2018-Q3||$354 M||17.60%||$47 M13.4%||41.49%|
|2018-Q4||$374 M||5.54%||$16 M4.4%||-65.61%|
Lumentum ownershipWhen you are planning to buy a company, it's always worth to review its ownership structure.
Lumentum shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.65% of all shares.
Bearish positions for LITE stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Lumentum:
|Market cap||$3.2 B||$29.0 M|
|Total shares||59.1 M||7.4 M|
|Float shares||75.8 M||4.8 M|
|- Institutional holdings (%)||87.3%||16.1%|
|- Insider holdings (%)||0.7%||35.2%|
|Shares in short selling||0.0%||0.0%|
|Monday, July 15th, 2019|
|Day range||$53.29 - $54.29|
|Average true range||$2.12|
|50d mov avg||$50.11|
|100d mov avg||$52.65|
|200d mov avg||$50.50|
Lumentum performanceTo better understand Lumentum performance you must compare its gains with other related stocks in same sector or industry. For Lumentum, the benchmark is made against Array.