Decoding 4 Analyst Evaluations For Lumentum Holdings
4 analysts have expressed a variety of opinions on Lumentum Holdings (NASDAQ:LITE) over the past quarter, offering a diverse set of opinions from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 1 | 1 | 1 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 1 | 1 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $50.75, a high estimate of $70.00, and a low estimate of $38.00. Witnessing a positive shift, the current average has risen by 1.0% from the previous average price target of $50.25.
Interpreting Analyst Ratings: A Closer Look
A comprehensive examination of how financial experts perceive Lumentum Holdings is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Christopher Rolland | Susquehanna | Raises | Positive | $70.00 | $60.00 |
| Alex Henderson | Needham | Lowers | Buy | $55.00 | $60.00 |
| Dave Kang | B. Riley Securities | Lowers | Neutral | $40.00 | $41.00 |
| Tom O'Malley | Barclays | Lowers | Underweight | $38.00 | $40.00 |
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: Gaining insights, analysts provide estimates for the future value of Lumentum Holdings's stock. This comparison reveals trends in analysts' expectations over time.
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.
Discovering Lumentum Holdings: A Closer Look
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 31 March, 2024, the company experienced a decline of approximately -4.41% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.
Net Margin: Lumentum Holdings's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -34.65%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Lumentum Holdings's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -10.35%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Lumentum Holdings's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -2.87%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 2.18, Lumentum Holdings adopts a prudent financial strategy, indicating a balanced approach to debt management.
Understanding the Relevance of Analyst Ratings
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.