AlphaGrep UK Ltd Buys New Holdings in Lumentum Holdings Inc. $LITE

Key Points

• AlphaGrep UK Ltd. purchased 1,417 Lumentum shares worth approximately $1.216 million during the second quarter, while institutional investors collectively own 94.05% of the company.
• Lumentum reported strong quarterly results, with $1.01 billion in revenue and adjusted EPS of $3.23, surpassing analyst expectations; revenue increased 109.3% year over year.
• Despite a largely favorable analyst consensus of “Moderate Buy,” Lumentum faces valuation and insider-selling concerns after a sharp stock rally. Shares recently traded near $881, below the $1,053.83 consensus price target.

AlphaGrep UK Ltd purchased a new position in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 1,417 shares of the technology company's stock, valued at approximately $1,216,000. Lumentum accounts for about 0.4% of AlphaGrep UK Ltd's investment portfolio, making the stock its 21st largest position.

Several other hedge funds and other institutional investors also recently made changes to their positions in the stock. Hilltop National Bank grew its position in Lumentum by 26.8% during the second quarter. Hilltop National Bank now owns 71 shares of the technology company's stock valued at $61,000 after buying an additional 15 shares during the period. Sachetta LLC lifted its position in shares of Lumentum by 118.8% in the first quarter. Sachetta LLC now owns 35 shares of the technology company's stock worth $25,000 after buying an additional 19 shares in the last quarter. Toth Financial Advisory Corp boosted its stake in Lumentum by 127.3% during the second quarter. Toth Financial Advisory Corp now owns 50 shares of the technology company's stock valued at $43,000 after buying an additional 28 shares during the last quarter. Versant Capital Management Inc grew its stake in shares of Lumentum by 39.5% in the 2nd quarter. Versant Capital Management Inc now owns 106 shares of the technology company's stock worth $91,000 after buying an additional 30 shares in the last quarter. Finally, Hilton Head Capital Partners LLC purchased a new position in shares of Lumentum in the 1st quarter worth $25,000. Hedge funds and other institutional investors own 94.05% of the company's stock.

Insider Buying and Selling

In other Lumentum news, CEO Michael E. Hurlston sold 548 shares of the business's stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $958.66, for a total transaction of $525,345.68. Following the transaction, the chief executive officer owned 186,951 shares in the company, valued at approximately $179,222,445.66. The trade was a 0.29% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Yuen Wupen sold 500 shares of the stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $860.00, for a total transaction of $430,000.00. Following the completion of the transaction, the insider owned 116,127 shares of the company's stock, valued at $99,869,220. This represents a 0.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 65,147 shares of company stock worth $55,812,856 over the last three months. 0.43% of the stock is owned by company insiders.

Lumentum Price Performance

Shares of NASDAQ LITE opened at $881.26 on Friday. The company has a market cap of $79.05 billion, a price-to-earnings ratio of -10.72 and a beta of 1.53. The stock's 50-day moving average is $814.62 and its two-hundred day moving average is $815.74. 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 Holdings Inc. has a 1-year low of $144.20 and a 1-year high of $1,085.68.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, topping the consensus estimate of $2.97 by $0.26. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%.The company had revenue of $1.01 billion for the quarter, compared to analyst estimates of $987.70 million. During the same quarter in the previous year, the company posted $0.88 earnings per share. The firm's revenue was up 109.3% compared to the same quarter last year. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Analysts forecast that Lumentum Holdings Inc. will post 19.78 EPS for the current fiscal year.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Optical-photonics rally: Lumentum gained alongside Coherent and other optical-networking stocks as investors focused on rising demand for lasers and optical components used to connect high-performance AI chips. Optical-photonics stocks article
• Positive Sentiment: Favorable analyst coverage: Deutsche Bank initiated coverage with a Buy rating, while Evercore also began research coverage. New institutional coverage can improve visibility and support investor interest in LITE. Deutsche Bank coverage article Evercore coverage article
• Positive Sentiment: AI infrastructure fundamentals remain strong: Recent results showed approximately $1.01 billion in quarterly revenue, adjusted EPS of $3.23, and guidance for $1.225 billion–$1.275 billion in revenue. Nvidia’s investment and purchase commitment for Lumentum’s laser components further reinforce the AI-demand thesis.
• Neutral Sentiment: Portfolio concentration warning: One analysis said LITE’s roughly 680% advance can make it an outsized portfolio position. The article remained positive on the business but advised investors to reassess position sizing after the substantial rally. Lumentum portfolio concentration article
• Negative Sentiment: Valuation concerns: A Seeking Alpha analysis argued that Lumentum has become too expensive following its dramatic run, creating a potential headwind if growth or AI infrastructure spending fails to exceed already-high expectations. Lumentum valuation article
• Negative Sentiment: Insider selling: Yuen Wupen sold two separate blocks of 500 shares for a combined $862,245. Both trades were conducted under a pre-arranged Rule 10b5-1 plan and represented only 0.43% of the insider’s holdings, making the signal relatively limited.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on LITE. Needham & Company LLC restated a "buy" rating and set a $1,040.00 price target on shares of Lumentum in a report on Wednesday, August 12th. TD Cowen boosted their price objective on shares of Lumentum from $800.00 to $820.00 and gave the company a "hold" rating in a research report on Wednesday, August 12th. Bank of America reduced their target price on shares of Lumentum from $1,100.00 to $1,000.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 12th. Morgan Stanley lifted their price objective on shares of Lumentum from $900.00 to $1,000.00 and gave the company an "equal weight" rating in a report on Wednesday, August 12th. Finally, Northland Securities boosted their price target on shares of Lumentum from $1,000.00 to $1,200.00 and gave the company an "outperform" rating in a report on Wednesday, June 3rd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,053.83.

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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