Lumentum Holdings Inc. (NASDAQ:LITE) Relative Strength Index (RSI) is 49.63, with weekly volatility at 2.00% and ATR at 2.40. The LITE stock’s 52-week price range has touched low of $65.67 and a $112.08 high. Intraday shares traded counted 0.66 million, which was 55.23% higher than its 30-day average trading volume of 1.48M. Its shares traded lower over the last trading session, losing -0.30% on 06/16/21. The shares fell to a low of $79.99 before closing at $81.08. LITE’s previous close was $81.32 while the outstanding shares total 75.80M. The firm has a beta of 0.94, a 12-month trailing P/E ratio of 17.23, and a growth ratio of 2.18.
Investors have identified the Communication Equipment company Lumentum Holdings Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $6.19 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Lumentum Holdings Inc. (LITE) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For LITE, the company has in raw cash 687.7 million on their books with 385.3 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 2.57 billion total, with 674.2 million as their total liabilities.
LITE were able to record 538.1 million as free cash flow during the 08/11/2021 quarter of the year, this saw their quarterly net cash flow reduce by 389.7 million. In cash movements, the company had a total of 614.5 million as operating cash flow.
Potential earnings growth for Lumentum Holdings Inc. (LITE)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/11/2021 quarter of the year, Lumentum Holdings Inc. recorded a total of 419.5 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 3.98% coming in sequential stages and their sales for the 08/11/2021 quarter reducing by -14.14%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 234.5 million trying to sell their products during the last quarter, with the result yielding a gross income of 185.0 million. This allows shareholders to hold on to 75.80M with the recently reported earning now reading 2.97 cents per share. This is a figure that compared to analyst’s prediction for their 08/11/2021 (1.08 cents a share).
Having a look at the company’s valuation, the company is expected to record 4.46 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on LITE sounds very interesting.
Is the stock of LITE attractive?
In related news, EVP & Chief Financial Officer, Ali Wajid sold 6,481 shares of the company’s stock in a transaction that recorded on Jun 04. The sale was performed at an average price of 82.50, for a total value of 534,682. As the sale deal closes, the Chief Executive Officer, LOWE ALAN S now sold 9,862 shares of the company’s stock, valued at 920,999. Also, EVP & Chief Financial Officer, Ali Wajid sold 6,480 shares of the company’s stock in a deal that was recorded on Feb 17. The shares were price at an average price of 93.35 per share, with a total market value of 604,923. Following this completion of acquisition, the EVP, Chief Operating Officer, Retort Vincent now holds 4,451 shares of the company’s stock, valued at 489,610. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.70%.
13 out of 18 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Lumentum Holdings Inc.. 0 analysts has assigned a Sell rating on the LITE stock. The 12-month mean consensus price target for the company’s shares has been set at $89.56.