Demystifying Lumentum Holdings: Insights From 4 Analyst Reviews

Lumentum Holdings LITE underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Lumentum Holdings, revealing an average target of $51.75, a high estimate of $62.00, and a low estimate of $45.00. This upward trend is evident, with the current average reflecting a 8.95% increase from the previous average price target of $47.50.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of Lumentum Holdings among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Lumentum Holdings. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Lumentum Holdings compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Lumentum Holdings's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

For valuable insights into Lumentum Holdings's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Lumentum Holdings analyst ratings.

All You Need to Know About Lumentum Holdings

Lumentum Holdings Inc is a California-based technology firm. The company provides two types of optical and photonic products: optical components that are used in telecommunications networking equipment, and commercial lasers for manufacturing, inspection, and life-science lab uses. Its segments are OpComms and Lasers. The firm is also expanding into new optical applications, such as 3-D sensing laser diode for consumer electronics. It generates maximum revenue from the OpComms segment. The OpComms segment products include a wide range of components, modules and subsystems to support customers including carrier networks for access (local), metro (intracity), long-haul, and submarine (undersea) applications.

Financial Insights: Lumentum Holdings

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Negative Revenue Trend: Examining Lumentum Holdings's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -37.33% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Lumentum Holdings's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -21.38%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Lumentum Holdings's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -5.09%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -1.48%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.19, caution is advised due to increased financial risk.

Understanding the Relevance of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.