Ariose Capital Management Ltd Purchases New Position in Lumentum Holdings Inc. $LITE

Key Points

• Ariose Capital Management opened a new position in Lumentum Holdings, buying 2,784 shares worth about $1.96 million in the first quarter. The stake represents 1.3% of Ariose’s holdings and makes Lumentum its 12th-largest position.
• Wall Street sentiment remains upbeat, with several analysts lifting price targets and the consensus rating sitting at Moderate Buy. The average target price is $1,021.95, with some firms setting targets as high as $1,200.
• Lumentum posted strong quarterly results, beating EPS expectations with $2.37 per share and revenue up 90.1% year over year. However, insiders have recently sold shares, including the CFO and another executive under pre-arranged trading plans.

Ariose Capital Management Ltd purchased a new stake in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) during the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 2,784 shares of the technology company's stock, valued at approximately $1,956,000. Lumentum makes up 1.3% of Ariose Capital Management Ltd's holdings, making the stock its 12th largest holding.

Several other large investors have also recently added to or reduced their stakes in LITE. Advisors Asset Management Inc. boosted its holdings in shares of Lumentum by 36.8% in the 1st quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company's stock worth $59,000 after acquiring an additional 254 shares in the last quarter. NewEdge Advisors LLC raised its position in 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 purchasing an additional 6,275 shares during the last quarter. Empowered Funds LLC raised its position in Lumentum by 9.1% in the 1st quarter. Empowered Funds LLC now owns 8,139 shares of the technology company's stock valued at $507,000 after purchasing an additional 680 shares during the last quarter. Hsbc Holdings PLC acquired a new position in Lumentum in the second quarter worth $298,000. Finally, Arrowstreet Capital Limited Partnership bought a new stake in shares of Lumentum during the second quarter worth $1,712,000. 94.05% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on LITE shares. Citic Securities raised their target price on Lumentum from $620.00 to $1,186.00 in a research note on Monday, May 11th. Citigroup increased their price objective on shares of Lumentum from $800.00 to $1,100.00 and gave the stock a "buy" rating in a report on Tuesday, April 21st. JPMorgan Chase & Co. raised their price objective on shares of Lumentum from $950.00 to $1,130.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Northland Securities boosted their target price on shares of Lumentum from $1,000.00 to $1,200.00 and gave the stock an "outperform" rating in a research note on Wednesday, June 3rd. Finally, Needham & Company LLC reiterated a "buy" rating and set a $1,040.00 target price on shares of Lumentum in a research report on Tuesday, June 9th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $1,021.95.

Lumentum Price Performance

Shares of LITE stock opened at $728.32 on Friday. The stock has a 50-day moving average price of $892.56 and a 200 day moving average price of $683.79. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01. The firm has a market cap of $56.66 billion, a price-to-earnings ratio of 134.87 and a beta of 1.48. Lumentum Holdings Inc. has a 12 month low of $88.93 and a 12 month high of $1,085.68.

Lumentum (NASDAQ:LITE - Get Free Report) last released its earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.27 by $0.10. The company had revenue of $808.40 million for the quarter, compared to the consensus estimate of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The company's revenue was up 90.1% compared to the same quarter last year. During the same period in the prior year, the company posted $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. Research analysts expect that Lumentum Holdings Inc. will post 6.4 EPS for the current year.

Insider Activity

In other Lumentum news, CFO Wajid Ali sold 2,487 shares of the company's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $2,372,473.65. Following the completion of the sale, the chief financial officer owned 60,951 shares in the company, valued at approximately $58,144,206.45. The trade was a 3.92% decrease in their position. The sale was disclosed in a legal filing with the SEC, 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, insider Vincent Retort sold 3,183 shares of the company's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $953.95, for a total value of $3,036,422.85. Following the completion of the sale, the insider owned 89,563 shares of the company's stock, valued at $85,438,623.85. This represents a 3.43% 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. In the last ninety days, insiders have sold 41,260 shares of company stock worth $38,859,220. Corporate insiders own 0.43% of the company's stock.

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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