Bank of Nova Scotia Decreases Stock Position in Lumentum Holdings Inc. $LITE

Key Points

• Bank of Nova Scotia cut its Lumentum stake by 86.9% in the first quarter, selling 60,191 shares and retaining 9,077 shares valued at approximately $6.4 million. Other institutional investors initiated positions, and institutions collectively own 94.05% of the company.
• Lumentum reported quarterly earnings of $2.37 per share, exceeding estimates of $2.27, while revenue rose 90.1% year over year to $808.4 million. The company issued fourth-quarter 2026 EPS guidance of $2.85 to $3.05.
• Analysts maintain a favorable outlook, with 14 Buy ratings and seven Holds producing a “Moderate Buy” consensus and an average price target of $1,012.67. Meanwhile, insiders sold $38.9 million of shares over the past three months, primarily through pre-arranged trading plans.

Bank of Nova Scotia cut its stake in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 86.9% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 9,077 shares of the technology company's stock after selling 60,191 shares during the quarter. Bank of Nova Scotia's holdings in Lumentum were worth $6,379,000 as of its most recent SEC filing.

Other hedge funds have also bought and sold shares of the company. CI Investments Inc. purchased a new stake in shares of Lumentum in the first quarter worth approximately $35,490,000. Westpac Banking Corp purchased a new position in Lumentum during the 1st quarter valued at $3,292,000. Telligent Fund LP bought a new position in Lumentum in the 1st quarter valued at $1,687,000. Temasek Holdings Private Ltd bought a new position in Lumentum in the 1st quarter valued at $18,220,000. Finally, ABN Amro Investment Solutions purchased a new stake in Lumentum in the first quarter worth $2,566,000. Institutional investors own 94.05% of the company's stock.

Insider Activity at Lumentum

In other news, insider Vincent Retort sold 3,183 shares of the business's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $953.95, for a total transaction of $3,036,422.85. Following the sale, the insider owned 89,563 shares in the company, valued at approximately $85,438,623.85. The trade was a 3.43% decrease in their ownership of the stock. The sale was disclosed in a legal 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 1,416 shares of the business's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $1,000.08, for a total transaction 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 represents a 16.86% 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. Insiders have sold a total of 41,260 shares of company stock valued at $38,859,220 over the last three months. Company insiders own 0.43% of the company's stock.

Lumentum Stock Performance

Shares of LITE stock opened at $711.96 on Tuesday. The firm has a market cap of $55.39 billion, a price-to-earnings ratio of 131.84 and a beta of 1.48. Lumentum Holdings Inc. has a 52-week low of $101.61 and a 52-week high of $1,085.68. 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 company's 50 day moving average is $841.23 and its 200 day moving average is $730.69.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its earnings results 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 company had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.21 million. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.Lumentum's revenue was up 90.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, sell-side analysts anticipate that Lumentum Holdings Inc. will post 6.42 EPS for the current fiscal year.

Analysts Set New Price Targets

Several research firms recently commented on LITE. Zacks Research downgraded shares of Lumentum from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 6th. Stifel Nicolaus boosted 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. Loop Capital upped their target price on shares of Lumentum from $900.00 to $1,400.00 and gave the stock a "buy" rating in a research note on Tuesday, May 5th. Citic Securities raised their target price on shares of Lumentum from $620.00 to $1,186.00 in a research report on Monday, May 11th. Finally, Rosenblatt Securities lifted their price target on shares of Lumentum from $900.00 to $1,300.00 and gave the company a "buy" rating in a research note on Wednesday, May 6th. Fourteen analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $1,012.67.

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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