11,411 Shares in Lumentum Holdings Inc. $LITE Purchased by Wealthfront Advisers LLC

Key Points

• Wealthfront Advisers purchased 11,411 Lumentum shares worth approximately $9.8 million in the second quarter. Institutional investors collectively own 94.05% of the company.
• Lumentum reported quarterly earnings of $3.23 per share and revenue of $1.01 billion, exceeding analyst expectations, while revenue surged 109.3% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $1,044.67.
• AI-driven optical networking demand remains a major growth catalyst, but the stock faces risks from its demanding valuation, broader AI-sector risk aversion and recent planned insider sales. Shares were trading down 5.2% at $827.60.

Wealthfront Advisers LLC purchased a new stake in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 11,411 shares of the technology company's stock, valued at approximately $9,791,000.

Other hedge funds have also recently bought and sold shares of the company. Advisors Asset Management Inc. increased its position in shares of Lumentum by 36.8% during the 1st quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company's stock worth $59,000 after purchasing an additional 254 shares during the last quarter. NewEdge Advisors LLC boosted its holdings in shares of Lumentum by 109.9% in the 1st quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company's stock valued at $747,000 after buying an additional 6,275 shares during the last quarter. Empowered Funds LLC grew its stake in shares of Lumentum by 9.1% in the first quarter. Empowered Funds LLC now owns 8,139 shares of the technology company's stock valued at $507,000 after buying an additional 680 shares in the last quarter. Hsbc Holdings PLC acquired a new position in Lumentum during the second quarter worth $298,000. Finally, Arrowstreet Capital Limited Partnership bought a new stake in Lumentum during the second quarter worth $1,712,000. 94.05% of the stock is currently owned by institutional investors.

Key Stories Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: AI networking demand is accelerating. Analysts say rising adoption of near-packaged optics (NPO) and co-packaged optics (CPO), along with demand from hyperscale data centers, could drive substantial revenue growth and margin expansion. One analysis expects fiscal 2027 revenue to more than double, while also highlighting opportunities in both merchant and custom chips. Lumentum Upgrade
• Positive Sentiment: Lumentum compares favorably with other AI technology stocks. Recent coverage points to steadier quarter-over-quarter revenue expansion than C3.ai and stronger growth prospects than Applied Optoelectronics, supporting the view that Lumentum is a preferred way to invest in optical networking. AAOI versus Lumentum
• Neutral Sentiment: Analyst sentiment remains favorable, but valuation is demanding. Lumentum has a broad “Moderate Buy” consensus and several price-target increases, yet its approximately 11.4-times sales multiple leaves the stock vulnerable to profit-taking if growth expectations weaken. Lumentum Moderate Buy Rating
• Negative Sentiment: Sector-wide AI risk aversion is the immediate pressure. Reports involving Anthropic and a Wall Street Journal article triggered a selloff in optics and AI hardware shares, raising concerns about the pace or durability of AI infrastructure spending. Optics Stocks Drop on Anthropic News
• Negative Sentiment: Insider selling adds a modest sentiment headwind. Two executives sold shares under pre-arranged Rule 10b5-1 plans to cover tax withholding on vested equity awards. Because the sales were planned and the executives retained sizable positions, they appear less significant than discretionary selling. Lumentum Insider Sale

Analyst Ratings Changes

LITE has been the subject of a number of recent analyst reports. Craig Hallum increased their price target on shares of Lumentum from $900.00 to $1,150.00 in a research note on Wednesday, May 6th. TD Cowen upped their target price on shares of Lumentum from $800.00 to $820.00 and gave the company a "hold" rating in a report on Wednesday, August 12th. Weiss Ratings downgraded shares of Lumentum from a "hold (c)" rating to a "hold (c-)" rating in a research note on Wednesday, August 5th. Mizuho lifted their price target on Lumentum from $1,100.00 to $1,140.00 and gave the stock an "outperform" rating in a report on Wednesday, August 12th. Finally, Zacks Research downgraded Lumentum from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Thirteen equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $1,044.67.

Insider Buying and Selling at Lumentum

In other news, Director Isaac Hosojiro Harris sold 4,000 shares of the business's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $860.00, for a total transaction of $3,440,000.00. Following the completion of the sale, the director owned 8,400 shares in the company, valued at $7,224,000. The trade was a 32.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Vincent Retort sold 3,183 shares of the company's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $909.43, for a total value of $2,894,715.69. Following the completion of the transaction, the insider directly owned 114,495 shares in the company, valued at $104,125,187.85. The trade was a 2.70% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders have sold a total of 9,965 shares of company stock valued at $8,993,110 in the last three months. 0.43% of the stock is currently owned by company insiders.

Lumentum Trading Down 5.2%

LITE stock opened at $827.60 on Thursday. Lumentum Holdings Inc. has a one year low of $111.20 and a one year high of $1,085.68. The stock has a market cap of $74.24 billion, a price-to-earnings ratio of -10.07 and a beta of 1.50. The company has a fifty day moving average price of $811.06 and a two-hundred day moving average price of $786.24. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.68 and a quick ratio of 1.40.

Lumentum (NASDAQ:LITE - Get Free Report) last issued its quarterly earnings data on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, beating the consensus estimate of $2.97 by $0.26. The company had revenue of $1.01 billion for the quarter, compared to analyst estimates of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The company's revenue was up 109.3% on a year-over-year basis. During the same period in the prior year, the firm earned $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Equities analysts anticipate that Lumentum Holdings Inc. will post 16.97 EPS for the current 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.

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