AIA Group Ltd Lowers Holdings in Lumentum Holdings Inc. $LITE

Key Points

• AIA Group Ltd cut its Lumentum stake by 74% in the first quarter, selling 3,368 shares and leaving it with 1,186 shares valued at about $833,000.
• Lumentum reported strong quarterly results, with EPS of $2.37 beating estimates and revenue jumping 90.1% year over year; the company also guided Q4 2026 EPS to $2.85-$3.05.
• Analyst sentiment remains upbeat, with several firms raising price targets and the stock carrying a Moderate Buy consensus rating and average target price of $1,012.67.

AIA Group Ltd trimmed its position in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 74.0% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 1,186 shares of the technology company's stock after selling 3,368 shares during the period. AIA Group Ltd's holdings in Lumentum were worth $833,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently made changes to their positions in LITE. Arrowstreet Capital Limited Partnership raised its holdings in shares of Lumentum by 18.7% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company's stock valued at $683,661,000 after acquiring an additional 291,591 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of Lumentum by 9.6% during the fourth quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company's stock worth $521,563,000 after purchasing an additional 123,265 shares in the last quarter. Situational Awareness LP increased its position in shares of Lumentum by 210.9% in the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company's stock worth $478,577,000 after purchasing an additional 880,800 shares during the last quarter. Norges Bank bought a new position in shares of Lumentum in the fourth quarter worth approximately $474,495,000. Finally, Value Aligned Research Advisors LLC purchased a new stake in Lumentum in the fourth quarter valued at approximately $432,062,000. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

Lumentum Stock Up 4.5%

Shares of NASDAQ LITE opened at $765.55 on Tuesday. The stock has a market capitalization of $59.56 billion, a P/E ratio of 141.77 and a beta of 1.48. Lumentum Holdings Inc. has a one year low of $97.55 and a one year high of $1,085.68. The firm's 50 day simple moving average is $859.31 and its two-hundred day simple moving average is $715.91. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, topping analysts' consensus estimates of $2.27 by $0.10. The firm had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The business's quarterly revenue was up 90.1% on a year-over-year basis. During the same period in the previous year, the business posted $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, analysts expect that Lumentum Holdings Inc. will post 6.42 EPS for the current fiscal year.

Insider Activity

In other news, insider Yuen Wupen sold 3,210 shares of Lumentum stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $3,062,179.50. Following the transaction, the insider owned 81,488 shares in the company, valued at approximately $77,735,477.60. The trade was a 3.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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 business's stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $860.00, for a total value of $3,440,000.00. Following the completion of the sale, the director directly owned 8,400 shares of the company's stock, valued at approximately $7,224,000. This trade represents a 32.26% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 41,260 shares of company stock valued at $38,859,220. Company insiders own 0.43% of the company's stock.

Analyst Upgrades and Downgrades

LITE has been the subject of several research analyst reports. Rosenblatt Securities lifted their target price on shares of Lumentum from $900.00 to $1,300.00 and gave the company a "buy" rating in a research report on Wednesday, May 6th. Stifel Nicolaus raised their price objective on shares of Lumentum from $800.00 to $1,100.00 and gave the company a "buy" rating in a research report on Tuesday, May 5th. B. Riley Financial reaffirmed a "buy" rating on shares of Lumentum in a report on Friday, May 1st. Mizuho set a $1,100.00 target price on shares of Lumentum in a research report on Wednesday, May 6th. Finally, Raymond James Financial reissued an "outperform" rating and issued a $1,014.00 target price on shares of Lumentum in a research note on Wednesday, May 6th. Fourteen analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, Lumentum presently has a consensus rating of "Moderate Buy" and an average target price of $1,012.67.

About Lumentum

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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