Ratings for Lumentum Holdings LITE were provided by 12 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 5 | 2 | 3 | 2 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 4 | 2 | 2 | 2 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 1 | 0 | 0 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $58.58, along with a high estimate of $70.00 and a low estimate of $40.00. Marking an increase of 10.17%, the current average surpasses the previous average price target of $53.17.
Understanding Analyst Ratings: A Comprehensive Breakdown
An in-depth analysis of recent analyst actions unveils how financial experts perceive Lumentum Holdings. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Tim Savageaux | Northland Capital Markets | Raises | Market Perform | $45.00 | $40.00 |
| Vivek Arya | B of A Securities | Raises | Underperform | $50.00 | $45.00 |
| George Notter | Jefferies | Raises | Buy | $65.00 | $53.00 |
| Richard Shannon | Craig-Hallum | Raises | Buy | $70.00 | $65.00 |
| Meta Marshall | Morgan Stanley | Raises | Equal-Weight | $54.00 | $50.00 |
| Tom O'Malley | Barclays | Raises | Underweight | $40.00 | $38.00 |
| Dave Kang | B. Riley Securities | Raises | Neutral | $50.00 | $40.00 |
| Mike Genovese | Rosenblatt | Raises | Buy | $69.00 | $65.00 |
| Alex Henderson | Needham | Raises | Buy | $70.00 | $65.00 |
| Samik Chatterjee | JP Morgan | Raises | Overweight | $65.00 | $57.00 |
| Christopher Rolland | Susquehanna | Raises | Positive | $70.00 | $60.00 |
| Alex Henderson | Needham | Lowers | Buy | $55.00 | $60.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Lumentum Holdings. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Lumentum Holdings compared to the broader market.
- Price Targets: Analysts predict movements in price targets, offering estimates for Lumentum Holdings's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Lumentum Holdings's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
Stay up to date on Lumentum Holdings analyst ratings.
Unveiling the Story Behind 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.
Lumentum Holdings: Delving into Financials
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Decline in Revenue: Over the 3 months period, Lumentum Holdings faced challenges, resulting in a decline of approximately -15.88% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the 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 -81.9%, the company may face hurdles in effective cost management.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -23.66%, the company may need to address challenges in generating 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 -6.21%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Lumentum Holdings's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 2.67.
The Basics of Analyst Ratings
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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