Lumentum Stock: 5 Straight Red Days, Down 45%
Shares of Lumentum (LITE) have closed lower in each of the last 5 sessions, a cumulative decline of 44.6%. That erased about $37.9 billion from the company’s market value, which now stands at about $47.1 billion. The stock closed at $509.70 on Thursday, November 5, 55.0% below its 52-week high of $1,133.40 and 124.7% above its low of $226.86.
LITE Versus The S&P 500
Returns for LITE and the S&P 500 over the streak and the periods around it, all ending Thursday, November 5 and including dividends:
| Return Period | LITE | S&P 500 |
|---|---|---|
| 1 Day | -18.7% | -4.4% |
| 5 Days (Current Streak) | -44.6% | -4.7% |
| 1 Month (21 Trading Days) | -54.1% | -5.7% |
| 3 Months (63 Trading Days) | -42.7% | -5.0% |
| Year To Date | 38.3% | 8.4% |
| 1 Year (252 Trading Days) | 170.6% | 9.9% |
Is This Move About Lumentum Or The Market?
The market explains little of this: the S&P 500 lost 4.7% over the same 5 sessions, including dividends, against Lumentum’s -44.6%. 5 other S&P 500 stocks are currently on losing streaks of 5 days or longer. Over the past three months the stock is down 42.7%, a window that includes the streak; over the other 58 sessions of that window it was up 3.3%.
Is The Business As Weak As The Stock?
On the fundamentals, revenue grew 103.2% over the last twelve months, against a median of 17.9% for S&P 500 Information Technology stocks; and its operating margin is 23.4%, versus a median of 21.5%. Lumentum does not have positive trailing earnings, so there is no meaningful price-to-earnings multiple to compare. The read is mixed.
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