Lumentum Jumps 4.5% and Par Pacific Rises 6.7% on Separate Catalysts
Key Facts
Lumentum shares rose 4.5% in morning trading on October 26 after StoneX initiated coverage with a Buy rating and set a price target of $1,200 a share, according to Investing.com. The stock reached a session high of $800.75, the same report said. The move followed the new rating, while EL7 data showed the stock closed at $756.17 on October 23. Lumentum is moving on a different track from Par Pacific, with the former’s rise tied to analyst coverage and prospects for demand for AI infrastructure components. The refiner and fuel company’s shares, meanwhile, rebounded after recent pressure, amid mixed analyst ratings.
StoneX attributed its rating to a positive view of the stock, while the consensus rating on Lumentum was “Moderate Buy,” based on 22 Buy ratings and 5 Hold ratings, according to Investing.com. StoneX also initiated coverage of the company’s competitor Coherent with a Buy rating, signaling its interest in the optics and photonics sector tied to demand for AI infrastructure. Lumentum’s results provide an operating backdrop for that interest: on August 11, it reported revenue of $1.01 billion in the fourth quarter of its fiscal 2026 and a non-GAAP gross margin of 50.4%. Revenue reported precisely in the results was $1,006.3 million, up 109.3% year over year and 24.5% quarter over quarter. The breadth of annual growth highlights accelerating activity compared with the year-earlier period, while the quarterly change showed continued improvement across consecutive quarters.
But Lumentum’s results also included a GAAP net loss of $7.2 billion in the fourth quarter, which the company attributed to a one-time, non-cash item of $7.8 billion related to debt extinguishment after portions of convertible notes were converted into shares. This explanation distinguishes the reported loss from the operating performance reflected in revenue and gross margin, without removing its effect on the accounting result. The company’s chief executive said, “AI demand is driving the midpoint of first-quarter revenue guidance to $1.25 billion,” adding that the company is reaching its target model more than a quarter ahead of schedule. Lumentum projected first-quarter fiscal 2027 revenue of between $1.225 billion and $1.275 billion, and a non-GAAP operating margin of between 39.5% and 40.5%. These projections put continuing demand at the center of the operating outlook the company presented to investors.
At Par Pacific, shares rose 6.7% in morning trading on October 26 to $82.31, after retreating in previous sessions toward $77, according to Investing.com. The rebound followed Goldman Sachs’ downgrade of the stock to Neutral on October 15, a decision that Investing.com said weighed on its performance. By contrast, Raymond James raised its price target to $117 from $104, while maintaining an Outperform rating, and J.P. Morgan issued a Buy rating. The mix of views reflects differing analyst assessments of the stock following its decline, while EL7 data showed it closed at $77.15 on October 23. Par Pacific’s move is unrelated to Lumentum’s catalyst: the former is a refiner, and it said that completing most of its routine maintenance in Hawaii positions it to benefit from a favorable refining margin environment.
Par Pacific’s operating backdrop rests on its second-quarter 2026 results, when it reported adjusted earnings per share of $10.10 and Adjusted EBITDA of $571 million, according to Investing.com. The company had said that completing most of its annual routine maintenance in Hawaii puts it in a good position to benefit from a favorable refining margin environment. Investors are now focused on the third-quarter results announcement: Par Pacific said it will release them after the New York Stock Exchange closes on November 3. The company is scheduled to hold its investor conference on November 4 at 9:00 a.m. U.S. Central Time. Lumentum has set November 5 for its first-quarter fiscal 2027 results conference, where the market will be watching its operating guidance and revenue.