AXQ Capital LP Buys New Position in Lumentum Holdings Inc. $LITE

Key Points

• AXQ Capital LP established a new Lumentum position of 6,260 shares worth approximately $5.37 million, while institutional investors collectively own 94.05% of the company.
• Lumentum reported strong quarterly results, with revenue rising 109.3% year over year to $1.01 billion and EPS of $3.23, exceeding analyst expectations of $2.97.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $1,053.83, although insiders sold roughly $54.95 million of stock during the latest quarter.

AXQ Capital LP bought a new stake in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm bought 6,260 shares of the technology company's stock, valued at approximately $5,371,000. Lumentum accounts for approximately 0.6% of AXQ Capital LP's holdings, making the stock its 15th largest position.

A number of other hedge funds and other institutional investors also recently made changes to their positions in LITE. Hilton Head Capital Partners LLC bought a new stake in shares of Lumentum in the 1st quarter worth $25,000. Sachetta LLC grew its holdings in Lumentum by 118.8% during the first quarter. Sachetta LLC now owns 35 shares of the technology company's stock worth $25,000 after acquiring an additional 19 shares during the period. Meeder Asset Management Inc. acquired a new position in Lumentum during the second quarter worth about $40,000. Keating Financial Advisory Services Inc. bought a new stake in Lumentum in the second quarter worth about $41,000. Finally, Fiduciary Financial Advisors bought a new stake in Lumentum in the second quarter worth about $42,000. 94.05% of the stock is currently owned by institutional investors.

Lumentum Trading Down 2.7%

NASDAQ LITE opened at $847.37 on Friday. The firm's 50 day moving average price is $813.36 and its two-hundred day moving average price is $815.28. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.40 and a current ratio of 1.68. Lumentum Holdings Inc. has a twelve month low of $133.91 and a twelve month high of $1,085.68. The stock has a market cap of $76.01 billion, a price-to-earnings ratio of -10.31 and a beta of 1.53.

Lumentum (NASDAQ:LITE - Get Free Report) last released its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.97 by $0.26. The company had revenue of $1.01 billion during 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 company's revenue for the quarter was up 109.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Equities analysts anticipate that Lumentum Holdings Inc. will post 19.78 EPS for the current year.

Insiders Place Their Bets

In other Lumentum news, insider Yuen Wupen sold 500 shares of Lumentum stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $895.00, for a total transaction of $447,500.00. Following the transaction, the insider owned 118,127 shares of the company's stock, valued at $105,723,665. The trade was a 0.42% decrease in their position. 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. Also, insider Vincent Retort sold 38,663 shares of the company's stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $852.59, for a total value of $32,963,687.17. Following the completion of the transaction, the insider owned 78,440 shares in the company, valued at $66,877,159.60. This represents a 33.02% 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. Over the last quarter, insiders have sold 64,147 shares of company stock valued at $54,950,611. 0.43% of the stock is owned by insiders.

Wall Street Analyst Weigh In

LITE has been the subject of several research reports. Citigroup restated a "buy" rating on shares of Lumentum in a research report on Wednesday, August 12th. Deutsche Bank Aktiengesellschaft started coverage on shares of Lumentum in a report on Monday. They issued a "buy" rating and a $1,200.00 target price on the stock. Morgan Stanley increased their target price on shares of Lumentum from $900.00 to $1,000.00 and gave the company an "equal weight" rating in a research note on Wednesday, August 12th. Weiss Ratings cut shares of Lumentum from a "hold (c-)" rating to a "sell (d-)" rating in a report on Wednesday, August 19th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Lumentum from $1,165.00 to $1,280.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Lumentum has an average rating of "Moderate Buy" and a consensus target price 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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