Penny Herscher, a director at Lumentum Holdings Inc . (NASDAQ:LITE), has recently sold a total of $176,159 worth of the company's common stock. The transactions, which took place on November 18 and 19, involved multiple trades at prices ranging from $80.261 to $82.5179 per share.
The sales were executed under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which was adopted by Herscher on May 20, 2024. Following these transactions, Herscher retains direct ownership of 6,310 shares of Lumentum Holdings' common stock. Additionally, she holds 39,378 shares indirectly through a living trust.
Lumentum Holdings, a company based in San Jose, California, specializes in communications equipment.
In other recent news, Lumentum Holdings Inc. has reported its Q1 FY2025 financial results, surpassing its guidance with a revenue of $336.9 million and a non-GAAP earnings per share (EPS) of $0.18. The firm experienced a record number of Datacom laser chip orders, primarily driven by the growing demands of cloud and AI customers. Lumentum's outlook includes a double-digit sequential revenue growth in Q2 and a goal to reach a quarterly revenue target of $500 million by the end of 2025, with expectations of continued growth into 2026 and 2027.
The company's GAAP gross margin stood at 23.1%, and non-GAAP gross margin at 32.8%. Revenue from the Cloud and Networking segment grew 11% sequentially and 23% year-over-year, while the Industrial Tech segment revenue saw a 2% sequential increase but a 38% year-over-year decline. Lumentum also plans to start shipping to a new hyperscale transceiver customer in the first half of 2025.
For Q2 fiscal 2025, revenue is expected to be between $380 million and $400 million, with non-GAAP operating margins projected between 5.5% to 7.5%. Lumentum is also expanding its production capacity outside China, notably in Thailand, to meet increased demand and improve supply chain resilience. Despite these positive developments, the company reported a GAAP net loss per share of $1.21 and acknowledged constraints on laser capacity affecting product integration timelines.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Lumentum Holdings Inc.'s (NASDAQ:LITE) financial position and market performance, providing context to the recent insider sale by director Penny Herscher.
Despite the company's recent challenges, including not being profitable over the last twelve months, InvestingPro Tips highlight that 15 analysts have revised their earnings upwards for the upcoming period. This suggests a potentially improving outlook for Lumentum's financial performance.
The company's stock has shown remarkable strength recently, with InvestingPro data revealing a 92.06% price total return over the past year and a 79.24% return over the last six months. This strong performance aligns with the InvestingPro Tip indicating a high return over the last year and a large price uptick over the last six months.
Lumentum's financial health appears stable in the short term, as an InvestingPro Tip notes that liquid assets exceed short-term obligations. However, investors should be aware that the company is trading at a high Price/Book multiple of 6.32, which may indicate that the stock is relatively expensive compared to its book value.
For those interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for Lumentum Holdings, providing a deeper understanding of the company's financial position and market outlook.
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