185,019 Shares in Lumentum Holdings Inc. $LITE Bought by Blue Whale Capital LLP

Key Points

• Blue Whale Capital LLP acquired 185,019 Lumentum shares worth approximately $158.8 million, making Lumentum its sixth-largest holding and representing about 5% of the fund’s portfolio.
• Institutional investors own 94.05% of Lumentum, while insiders sold $14.3 million of stock over the past three months, largely through pre-arranged Rule 10b5-1 plans.
• Lumentum reported stronger-than-expected quarterly results, with $3.23 EPS and $1.01 billion in revenue, while analysts maintain a “Moderate Buy” consensus and cite AI-driven optical-networking demand; however, valuation and the company’s negative net margin remain concerns.

Blue Whale Capital LLP acquired a new stake in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) during the 2nd quarter, according to its most recent disclosure with the SEC. The fund acquired 185,019 shares of the technology company's stock, valued at approximately $158,757,000. Lumentum makes up about 5.0% of Blue Whale Capital LLP's portfolio, making the stock its 6th biggest holding. Blue Whale Capital LLP owned 0.24% of Lumentum as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Hilltop National Bank raised its stake in shares of Lumentum by 26.8% in the 2nd quarter. Hilltop National Bank now owns 71 shares of the technology company's stock valued at $61,000 after purchasing an additional 15 shares during the period. Sachetta LLC lifted its holdings in shares of Lumentum by 118.8% in the first quarter. Sachetta LLC now owns 35 shares of the technology company's stock valued at $25,000 after purchasing an additional 19 shares in the last quarter. Versant Capital Management Inc boosted its position in shares of Lumentum by 39.5% during the second quarter. Versant Capital Management Inc now owns 106 shares of the technology company's stock worth $91,000 after buying an additional 30 shares during the period. Hilton Head Capital Partners LLC acquired a new position in shares of Lumentum during the first quarter worth about $25,000. Finally, Abel Hall LLC grew its holdings in shares of Lumentum by 5.5% during the first quarter. Abel Hall LLC now owns 693 shares of the technology company's stock worth $487,000 after buying an additional 36 shares in the last quarter. 94.05% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other Lumentum news, insider Vincent Retort sold 3,183 shares of the company's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $909.43, for a total transaction of $2,894,715.69. Following the sale, the insider directly owned 114,495 shares of the company's stock, valued at approximately $104,125,187.85. This represents a 2.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 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 Isaac Hosojiro Harris sold 4,000 shares of the stock in a transaction on Friday, May 29th. The shares were 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 of the company's stock, valued at approximately $7,224,000. This represents a 32.26% 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. Insiders sold a total of 16,352 shares of company stock valued at $14,315,562 over the last three months. Corporate insiders own 0.43% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the company. Citigroup reissued a "buy" rating on shares of Lumentum in a research report on Wednesday, August 12th. UBS Group set a $820.00 price target on Lumentum in a research report on Wednesday, August 12th. Barclays raised their price target on shares of Lumentum from $750.00 to $1,000.00 and gave the stock an "equal weight" rating in a research note on Wednesday, May 6th. Rosenblatt Securities reissued a "buy" rating and issued a $1,300.00 price objective on shares of Lumentum in a research report on Wednesday, August 12th. Finally, Raymond James Financial restated an "outperform" rating and set a $1,036.00 target price on shares of Lumentum in a report on Wednesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Lumentum presently has an average rating of "Moderate Buy" and a consensus price target of $1,044.67.

Key Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Northland Securities raised its Lumentum earnings forecasts substantially. The firm lifted its FY2027 EPS estimate to $19.81 from $14.97, with quarterly estimates now ranging from $3.81 in Q1 to $6.20 in Q4. Northland maintained an “Outperform” rating and a $1,200 price target, supporting the bullish case for continued earnings growth. Northland Securities analyst estimate report
• Positive Sentiment: Lumentum is being highlighted as an AI-infrastructure beneficiary. Analysts and financial publications point to rising demand for optical networking equipment as data centers expand to support artificial intelligence workloads. Lumentum is positioned across the optics and networking portions of that buildout. Beyond Chipmakers: 4 Stocks to Buy That Power AI Data Center Expansion
• Positive Sentiment: LITE was added to Zacks’ Rank #1 momentum-stock list. The designation may attract momentum-oriented investors and reinforces the stock’s strong recent performance. Best Momentum Stocks to Buy for August 21st
• Neutral Sentiment: A report on data-center construction emphasized the enormous fiber requirements of new AI facilities, a potential long-term demand driver for optical-component suppliers such as Lumentum. However, the article provided limited company-specific financial updates. A Single Meta Data Center Will Require “8 Million Miles of Fiber”
• Negative Sentiment: Valuation concerns could be limiting further upside. A Seeking Alpha analysis characterized Lumentum as increasingly expensive after its sharp rally. With the shares near their 52-week high and the company still reporting a negative net margin, some investors may be taking profits despite the favorable growth outlook. Lumentum: It’s Getting Expensive

Lumentum Stock Performance

Shares of NASDAQ LITE opened at $866.71 on Monday. The stock has a 50 day moving average price of $809.76 and a 200 day moving average price of $792.80. Lumentum Holdings Inc. has a 52 week low of $115.89 and a 52 week high of $1,085.68. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.40 and a current ratio of 1.68. The stock has a market capitalization of $77.74 billion, a PE ratio of -10.54 and a beta of 1.50.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, topping the consensus estimate of $2.97 by $0.26. The firm had revenue of $1.01 billion for the quarter, compared to analyst estimates of $987.70 million. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%.The business's quarterly revenue was up 109.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Analysts predict that Lumentum Holdings Inc. will post 19.76 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.

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