Arrowstreet Capital Limited Partnership Acquires 291,591 Shares of Lumentum Holdings Inc. $LITE

Key Points

• Arrowstreet Capital increased its stake in Lumentum by 18.7% in the fourth quarter, adding 291,591 shares and bringing its total holding to 1.85 million shares worth about $683.7 million.
• Lumentum reported strong quarterly results, with EPS of $2.37 beating estimates and revenue rising 90.1% year over year to $808.4 million. The company also guided Q4 2026 EPS to a range of 2.850-3.050.
• Several analysts raised price targets on the stock, with the consensus target now at $1,021.95 and the overall rating at “Moderate Buy.” Meanwhile, insiders sold shares during the quarter, including the CFO and a director.

Arrowstreet Capital Limited Partnership increased its holdings in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 18.7% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 1,854,801 shares of the technology company's stock after acquiring an additional 291,591 shares during the quarter. Arrowstreet Capital Limited Partnership owned about 2.60% of Lumentum worth $683,661,000 as of its most recent filing with the SEC.

A number of other hedge funds have also bought and sold shares of LITE. EverSource Wealth Advisors LLC increased its position in Lumentum by 363.9% during the third quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company's stock worth $27,000 after acquiring an additional 131 shares during the period. V Square Quantitative Management LLC bought a new position in Lumentum during the fourth quarter worth about $28,000. Triumph Capital Management bought a new position in Lumentum during the fourth quarter worth about $30,000. Danske Bank A S bought a new position in Lumentum during the third quarter worth about $33,000. Finally, Harbour Investments Inc. increased its position in Lumentum by 675.0% during the fourth quarter. Harbour Investments Inc. now owns 93 shares of the technology company's stock worth $34,000 after acquiring an additional 81 shares during the period. 94.05% of the stock is owned by institutional investors.

Insider Buying and Selling

In other news, Director Isaac Hosojiro Harris sold 1,416 shares of the firm's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $1,000.08, for a total value of $1,416,113.28. Following the sale, the director directly owned 6,984 shares in the company, valued at approximately $6,984,558.72. This trade represents a 16.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Wajid Ali sold 2,487 shares of the firm's stock in a transaction that occurred 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 ownership of the stock. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 41,260 shares of company stock worth $38,859,220 in the last quarter. Corporate insiders own 0.43% of the company's stock.

Lumentum Trading Up 3.6%

Shares of Lumentum stock opened at $921.56 on Friday. The company has a market capitalization of $71.70 billion, a price-to-earnings ratio of 170.66 and a beta of 1.47. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01. Lumentum Holdings Inc. has a 12-month low of $81.93 and a 12-month high of $1,085.68. The firm's 50-day moving average price is $897.64 and its two-hundred day moving average price is $629.72.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, beating analysts' consensus estimates of $2.27 by $0.10. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The company had revenue of $808.40 million for the quarter, compared to the consensus estimate of $810.21 million. During the same period last year, the company posted $0.57 EPS. The firm's quarterly revenue was up 90.1% compared to the same quarter last year. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, analysts forecast that Lumentum Holdings Inc. will post 6.49 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of equities analysts recently commented on the stock. BNP Paribas Exane raised their price target on shares of Lumentum from $1,040.00 to $1,300.00 in a research report on Wednesday, May 6th. Barclays increased their price objective 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. Mizuho set a $1,100.00 price objective on shares of Lumentum in a research note on Wednesday, May 6th. Jefferies Financial Group reiterated a "buy" rating and set a $1,200.00 price objective on shares of Lumentum in a research note on Wednesday, May 6th. Finally, Stifel Nicolaus increased their price objective on shares of Lumentum from $800.00 to $1,100.00 and gave the stock a "buy" rating in a research note on Tuesday, May 5th. One 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 data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $1,021.95.

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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