Lumentum Holdings Inc. (NASDAQ:LITE) is among the top losers of the stock market today, sinking -2.38% or (-2.15 points) to $88.29 from its previous close of $90.44. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 692057 contracts so far this session. LITE shares had a relatively better volume day versus average trading capacity of 1.55 million shares, but with a 74.33 million float and a 2.38% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for LITE stock indicates that the average analyst price target is $97.13 per share. This means the stock has a potential increase of 10.01% from where the LITE share price has been trading recently.
During the recent trading session for Lumentum Holdings Inc. (NASDAQ:LITE), the company witnessed their stock rise $1.49 over a week and surge $11.04 from the price 20 days ago. When compared to their established 52-week high of $93.23, the high they recorded in their recent session happens to be higher. Their established 52-week high was attained by the company on 12/02/20. The recent low of $40.28 stood for a -5.3% since 05/31/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.38 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.
Looking at the current readings for Lumentum Holdings Inc., the two-week RSI stands at 61.54. This figure suggests that LITE stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current LITE readings is similarly very revealing as it has a stochastic reading of 85.61% at this stage. This figure means that LITE share price today is being oversold.
Technical chart claims that Lumentum Holdings Inc. (LITE) would settle between $92.29/share to $94.13/share level. However, if the stock price goes below the $89.44 mark, then the market for Lumentum Holdings Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $88.43 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 1.64. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at Raymond James lowered their recommendation on shares of LITE from Strong Buy to Outperform in their opinion released on January 10. UBS analysts have lowered their rating of Lumentum Holdings Inc. (NASDAQ:LITE) stock from Buy to Neutral in a separate flash note issued to investors on January 09. Analysts at Needham lowered the stock to a Buy call from its previous Strong Buy recommendation, in a research note that dated back to January 02.
LITE equity has an average rating of 1.82, with the figure leaning towards a bullish end. 17 analysts who tracked the company were contacted by Reuters. Amongst them, 2 rated the stock as a hold while the remaining 15 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 15 analysts rated Lumentum Holdings Inc. (NASDAQ:LITE) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, LITE stock price is currently trading at 14.95X forward 12-month Consensus EPS estimates, and its P/E ratio is 0 while for the average stock in the same group, the multiple is 35.2. Lumentum Holdings Inc. current P/B ratio of 4 means it is trading at a premium against its industry’s 3.6.