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Lumentum Flashes Bullish Signal Before Earnings With 19% Move Priced In

Analysts have raised targets on signs of stronger AI data‑center demand.

Overview

  • Lumentum’s share price has surged 128.4% this year and 1,303.2% over 12 months, cooling after a recent record high of $960 and showing buyers near $800.
  • A Schaeffer’s screen shows the stock sitting within 0.75 of its 50‑day average’s 20‑day true range, a setup that historically produced one‑month gains 67% of the time with an 11.4% average rise.
  • Options traders are bracing for a roughly 19% swing around the upcoming fiscal third‑quarter report, with short‑term positioning tilted bearish and short interest at 12.6% of the float.
  • An upside reaction could squeeze skeptics because the shares have outpaced options‑market volatility over the past year, reflected in an 87 out of 100 Schaeffer’s Volatility Scorecard.
  • Wall Street has boosted expectations, with Northland raising its target to $1,000, JPMorgan to $950, and Morgan Stanley to $710, citing stronger visibility tied to AI optics, new customer agreements, and planned capacity expansions.