New York, Jan 16, 2026, 20:06 EST — Market closed.
- Lumentum Holdings took a 5.5% hit on Friday, slipping $19 to finish at $324.25.
- Barclays raised its price target to $365, doubling it, yet maintained an Equal Weight rating.
- U.S. markets remain closed Monday, shifting focus to Photonics West and Lumentum’s earnings report due Feb. 3.
Lumentum Holdings Inc (LITE.O) shares ended Friday down 5.6%, closing at $324.25. The stock gyrated between $317.44 and $354.00 during a volatile session.
The pullback is significant since Lumentum serves as a high-beta proxy for optical gear spending, reacting sharply to even minor triggers—whether an analyst note, a conference headline, or a change in risk appetite. Friday’s decline made that volatility clear once again.
Markets will stay shut on Monday for Martin Luther King, Jr. Day. The U.S. equity session picks back up Tuesday. (New York Stock Exchange)
Barclays analyst Tom O’Malley bumped Lumentum’s price target to $365 from $181 but stuck with an Equal Weight rating, suggesting he expects the stock to track its peer group. In his note, O’Malley emphasized that “quality will ultimately rise to the top” amid ongoing questions about how widely the AI opportunity will be adopted. (TipRanks)
Following a drop in the regular session, Lumentum showed little movement in late trading, edging up roughly 0.2% to $324.75. (Yahoo Finance)
Separately, the company announced Thursday it will showcase ultrafast and UV laser platforms, along with 3D-sensing VCSELs (vertical-cavity surface-emitting lasers), at SPIE Photonics West in San Francisco from Jan. 20-22. “Manufacturers are being pushed to achieve tighter tolerances while simultaneously increasing throughput and uptime,” said Matt Philpott, vice president of business development. (Lumentum Investor Relations)
On Friday, the broader tape showed mixed results. IPG Photonics gained 2.15%, and nLIGHT nudged up slightly, even though the S&P 500 slipped 0.06%. (MarketWatch)
Options activity surged. According to Nasdaq data, 23,273 Lumentum options contracts changed hands by mid-afternoon. A standout was the $330 strike put expiring Jan. 16—a popular tool for hedging against declines or betting on a drop. (Nasdaq)
That said, the near-term outlook holds risks on both sides. Barclays raised its target but didn’t upgrade the rating, while options activity skewed defensive near the close. Should next month’s update fall short on demand or margin forecasts, the stock could see a sharp revaluation.
Feb. 3 marks the next key date for Lumentum, as the company will release its fiscal second-quarter results after the market closes, with a webcast scheduled for 5 p.m. ET. (Lumentum Investor Relations)
