Bank of Nova Scotia Takes $75.07 Million Position in Lumentum Holdings Inc. $LITE

Key Points

• Bank of Nova Scotia acquired 87,489 Lumentum shares worth approximately $75.1 million, representing about 0.11% of the company. Hedge funds and other institutions collectively own 94.05% of Lumentum.
• Lumentum reported quarterly EPS of $3.23, beating estimates of $2.97, while revenue rose 109.3% year over year to $1.01 billion. Analysts remain generally bullish, with a consensus “Moderate Buy” rating and an average price target of $1,044.67, citing AI-driven demand for optical networking equipment.
• Valuation and profitability remain risks: shares are near their 52-week high, the company reported a negative net margin, and insiders have sold 16,352 shares worth $14.3 million over the past 90 days.

Bank of Nova Scotia acquired a new position in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund acquired 87,489 shares of the technology company's stock, valued at approximately $75,071,000. Bank of Nova Scotia owned about 0.11% of Lumentum at the end of the most recent reporting period.

Other hedge funds have also recently bought and sold shares of the company. Arrowstreet Capital Limited Partnership raised its holdings in shares of Lumentum by 18.7% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company's stock valued at $683,661,000 after purchasing an additional 291,591 shares during the last quarter. Geode Capital Management LLC boosted its holdings in Lumentum by 9.6% during the fourth quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company's stock worth $521,563,000 after purchasing an additional 123,265 shares during the last quarter. Situational Awareness LP boosted its holdings in Lumentum by 210.9% during the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company's stock worth $478,577,000 after purchasing an additional 880,800 shares during the last quarter. Norges Bank bought a new stake in Lumentum in the 4th quarter worth about $474,495,000. Finally, Value Aligned Research Advisors LLC bought a new stake in Lumentum in the 4th quarter worth about $432,062,000. 94.05% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Northland Securities raised its Lumentum earnings forecasts substantially. The firm lifted its FY2027 EPS estimate to $19.81 from $14.97, with quarterly estimates now ranging from $3.81 in Q1 to $6.20 in Q4. Northland maintained an “Outperform” rating and a $1,200 price target, supporting the bullish case for continued earnings growth. Northland Securities analyst estimate report
• Positive Sentiment: Lumentum is being highlighted as an AI-infrastructure beneficiary. Analysts and financial publications point to rising demand for optical networking equipment as data centers expand to support artificial intelligence workloads. Lumentum is positioned across the optics and networking portions of that buildout. Beyond Chipmakers: 4 Stocks to Buy That Power AI Data Center Expansion
• Positive Sentiment: LITE was added to Zacks’ Rank #1 momentum-stock list. The designation may attract momentum-oriented investors and reinforces the stock’s strong recent performance. Best Momentum Stocks to Buy for August 21st
• Neutral Sentiment: A report on data-center construction emphasized the enormous fiber requirements of new AI facilities, a potential long-term demand driver for optical-component suppliers such as Lumentum. However, the article provided limited company-specific financial updates. A Single Meta Data Center Will Require “8 Million Miles of Fiber”
• Negative Sentiment: Valuation concerns could be limiting further upside. A Seeking Alpha analysis characterized Lumentum as increasingly expensive after its sharp rally. With the shares near their 52-week high and the company still reporting a negative net margin, some investors may be taking profits despite the favorable growth outlook. Lumentum: It’s Getting Expensive

Lumentum Trading Down 1.4%

Shares of LITE opened at $866.71 on Friday. Lumentum Holdings Inc. has a fifty-two week low of $115.89 and a fifty-two week high of $1,085.68. The business has a 50-day moving average of $809.76 and a 200 day moving average of $790.21. The firm has a market cap of $77.74 billion, a P/E ratio of -10.54 and a beta of 1.50. 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 (NASDAQ:LITE - Get Free Report) last released its quarterly earnings data on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, beating the consensus estimate of $2.97 by $0.26. The business had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The company's revenue was up 109.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, research analysts forecast that Lumentum Holdings Inc. will post 19.76 EPS for the current year.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on LITE shares. UBS Group set a $820.00 target price on shares of Lumentum in a research report on Wednesday, August 12th. JPMorgan Chase & Co. upped their target price on Lumentum from $1,165.00 to $1,280.00 and gave the company an "overweight" rating in a report on Wednesday, August 12th. Jefferies Financial Group reaffirmed a "buy" rating and set a $1,200.00 price target on shares of Lumentum in a research report on Wednesday, May 6th. Citigroup reiterated a "buy" rating on shares of Lumentum in a report on Wednesday, August 12th. Finally, Citic Securities boosted their price target on shares of Lumentum from $620.00 to $1,186.00 in a report on Monday, May 11th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $1,044.67.

Insider Buying and Selling

In related news, insider Yuen Wupen sold 500 shares of the business's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $898.15, for a total transaction of $449,075.00. Following the sale, the insider directly owned 93,229 shares in the company, valued at approximately $83,733,626.35. The trade was a 0.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed 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 2,483 shares of Lumentum stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $827.82, for a total value of $2,055,477.06. Following the transaction, the insider directly owned 109,438 shares of the company's stock, valued at $90,594,965.16. The trade was a 2.22% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 16,352 shares of company stock worth $14,315,562. 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.

Want to see what other hedge funds are holding LITE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Lumentum Holdings Inc. (NASDAQ:LITE - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source