7 Analysts Have This To Say About Lumentum Holdings

Lumentum Holdings LITE has been analyzed by 7 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Lumentum Holdings, presenting an average target of $95.0, a high estimate of $125.00, and a low estimate of $76.00. This upward trend is apparent, with the current average reflecting a 18.75% increase from the previous average price target of $80.00.

Diving into Analyst Ratings: An In-Depth Exploration

A clear picture of Lumentum Holdings's perception among financial experts is painted 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: 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: Understanding forecasts, analysts offer estimates for Lumentum Holdings's future value. Examining the current and prior targets provides insight into analysts' changing 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.

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 Optical Communications and Commercial 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.

Understanding the Numbers: Lumentum Holdings's Finances

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Positive Revenue Trend: Examining Lumentum Holdings's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.08% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -24.46%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Lumentum Holdings's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -8.89%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Lumentum Holdings's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -2.09%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Lumentum Holdings's debt-to-equity ratio surpasses industry norms, standing at 2.93. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

Breaking: Wall Street's Next Big Mover

Benzinga's #1 analyst just identified a stock poised for explosive growth. This under-the-radar company could surge 200%+ as major market shifts unfold. Click here for urgent details.

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