Capital Research Global Investors Sells 608,086 Shares of Lumentum Holdings Inc. $LITE

Capital Research Global Investors cut its stake in Lumentum Holdings Inc. (NASDAQ:LITE) by 37.5% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 1,014,460 shares of the technology company’s stock after selling 608,086 shares during the quarter. Capital Research Global Investors owned 1.42% of Lumentum worth $373,920,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently modified their holdings of the company. EverSource Wealth Advisors LLC increased its stake in shares of Lumentum by 363.9% in the 3rd quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company’s stock valued at $27,000 after acquiring an additional 131 shares during the last quarter. V Square Quantitative Management LLC bought a new stake in shares of Lumentum in the 4th quarter valued at about $28,000. Danske Bank A S bought a new stake in shares of Lumentum in the 3rd quarter valued at about $33,000. Harbour Investments Inc. increased its stake in shares of Lumentum by 675.0% in the 4th quarter. Harbour Investments Inc. now owns 93 shares of the technology company’s stock valued at $34,000 after acquiring an additional 81 shares during the last quarter. Finally, Chesapeake Asset Management LLC bought a new stake in shares of Lumentum in the 4th quarter valued at about $37,000. 94.05% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

LITE has been the subject of a number of recent analyst reports. Stifel Nicolaus upped their price target on Lumentum from $800.00 to $1,100.00 and gave the company a “buy” rating in a research note on Tuesday, May 5th. Needham & Company LLC increased their target price on Lumentum from $880.00 to $1,040.00 and gave the stock a “buy” rating in a research note on Tuesday, April 21st. BNP Paribas Exane increased their target price on Lumentum from $1,040.00 to $1,300.00 in a research note on Wednesday, May 6th. Rosenblatt Securities increased their target price on Lumentum from $900.00 to $1,300.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. Finally, Northland Securities increased their target price on Lumentum from $1,000.00 to $1,200.00 and gave the stock an “outperform” rating in a research note on Wednesday, June 3rd. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $1,021.95.

Insider Activity at Lumentum

In other news, insider Yuen Wupen sold 3,210 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $3,062,179.50. Following the completion of the transaction, the insider directly owned 81,488 shares of the company’s stock, valued at $77,735,477.60. This trade represents a 3.79% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Brian Lillie sold 11,951 shares of the firm’s stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $981.64, for a total transaction of $11,731,579.64. Following the transaction, the director directly owned 13,959 shares of the company’s stock, valued at $13,702,712.76. This represents a 46.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 41,260 shares of company stock worth $38,859,220. 0.43% of the stock is currently owned by corporate insiders.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Northland Securities raised its price target on Lumentum to $1,200 from $1,000 and kept an outperform rating, reinforcing the bullish analyst view on the stock. Article Title
• Positive Sentiment: Lumentum announced a $650.4 million private exchange of convertible notes, which may reduce financing overhang and improve balance-sheet flexibility. Article Title
• Positive Sentiment: Analyst sentiment remains favorable overall, with Lumentum holding an average rating of “Moderate Buy” and multiple firms maintaining positive price targets. Article Title
• Positive Sentiment: Investor enthusiasm continues around Lumentum’s role in AI optical interconnects, a narrative that has supported the stock’s longer-term move. Article Title
• Neutral Sentiment: Director Isaac Hosojiro Harris sold 1,416 shares in a pre-arranged 10b5-1 plan; while routine, insider selling can still make some investors cautious. Article Title
• Neutral Sentiment: Articles asking why LITE has been softer since its last earnings report mainly point to post-earnings digestion and valuation, rather than a new fundamental problem. Article Title

Lumentum Price Performance

NASDAQ LITE opened at $863.66 on Monday. The business has a 50 day simple moving average of $880.29 and a 200 day simple moving average of $610.37. Lumentum Holdings Inc. has a 52-week low of $80.39 and a 52-week high of $1,085.68. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14. The stock has a market cap of $67.19 billion, a price-to-earnings ratio of 159.94 and a beta of 1.47.

Lumentum (NASDAQ:LITE) last posted its earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.27 by $0.10. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The business had revenue of $808.40 million during the quarter, compared to analysts’ expectations of $810.21 million. During the same period in the prior year, the business earned $0.57 EPS. Lumentum’s revenue for the quarter was up 90.1% compared to the same quarter last year. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. Analysts anticipate that Lumentum Holdings Inc. will post 6.49 earnings per share for the current fiscal year.

Lumentum Profile

Lumentum Holdings Inc, headquartered in San Jose, California, is a leading provider of photonic technologies that enable high-speed optical communication networks and advanced industrial applications. The company designs and manufactures a broad range of lasers, optical modules and subsystems tailored to the evolving requirements of telecommunications carriers, cloud data centers and enterprise networking.

Its core product portfolio includes tunable and fixed-wavelength laser transmitters, coherent optical engines, transceivers for long-haul, metro and data center interconnects, as well as test and measurement instruments.