Barrow Hanley Mewhinney & Strauss LLC Invests $65.57 Million in Lumentum Holdings Inc. $LITE

Key Points

• Barrow Hanley Mewhinney & Strauss LLC acquired 76,413 Lumentum shares worth approximately $65.57 million, giving it a 0.10% stake. Institutional investors collectively own 94.05% of the company.
• Analyst sentiment remains bullish: Lumentum has an overall “Moderate Buy” rating and an average price target of $1,044.67, while JPMorgan raised its target to $1,280 and Northland lifted its FY2027 EPS forecast to $19.81.
• Lumentum reported quarterly EPS of $3.23 versus the $2.97 consensus estimate, with revenue rising 109.3% year over year to $1.01 billion. Shares opened at $866.71, though valuation concerns remain as the stock trades near its 52-week high and the company reports a negative net margin.

Barrow Hanley Mewhinney & Strauss LLC bought 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 (SEC). The firm bought 76,413 shares of the technology company's stock, valued at approximately $65,567,000. Barrow Hanley Mewhinney & Strauss LLC owned 0.10% of Lumentum as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Arrowstreet Capital Limited Partnership boosted its stake in shares of Lumentum by 8,579.2% during the third quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company's stock valued at $254,350,000 after purchasing an additional 1,545,199 shares in the last quarter. Norges Bank acquired a new stake in Lumentum in the fourth quarter worth about $474,495,000. Value Aligned Research Advisors LLC acquired a new stake in Lumentum in the 4th quarter worth approximately $432,062,000. Situational Awareness LP boosted its stake in Lumentum by 210.9% in the 4th 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 in the last quarter. Finally, Aspex Management HK Ltd purchased a new stake in Lumentum during the 4th quarter worth approximately $251,363,000. 94.05% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

LITE has been the subject of several research reports. Zacks Research upgraded shares of Lumentum from a "hold" rating to a "strong-buy" rating in a research note on Thursday. UBS Group set a $820.00 price target on Lumentum in a research report on Wednesday, August 12th. JPMorgan Chase & Co. boosted their target price on shares of Lumentum from $1,165.00 to $1,280.00 and gave the company an "overweight" rating in a research note on Wednesday, August 12th. Craig Hallum increased their price target on Lumentum from $900.00 to $1,150.00 in a research report on Wednesday, May 6th. Finally, Citic Securities boosted their target price on shares of Lumentum from $620.00 to $1,186.00 in a research note on Monday, May 11th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $1,044.67.

Insider Buying and Selling

In other news, SVP Jae Kim sold 1,904 shares of the firm's stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $827.82, for a total value of $1,576,169.28. Following the sale, the senior vice president directly owned 42,096 shares in the company, valued at approximately $34,847,910.72. This trade represents a 4.33% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 Yuen Wupen sold 1,500 shares of the business's stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $827.82, for a total value of $1,241,730.00. Following the sale, the insider owned 100,434 shares of the company's stock, valued at approximately $83,141,273.88. The trade was a 1.47% 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 16,352 shares of company stock valued at $14,315,562. 0.43% of the stock is currently owned by company insiders.

Lumentum News Roundup

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 Price Performance

Shares of NASDAQ:LITE opened at $866.71 on Monday. The company has a current ratio of 1.68, a quick ratio of 1.40 and a debt-to-equity ratio of 0.01. The company has a market capitalization of $77.74 billion, a price-to-earnings ratio of -10.54 and a beta of 1.50. The business has a 50-day moving average price of $809.76 and a 200 day moving average price of $792.80. Lumentum Holdings Inc. has a 12-month low of $115.89 and a 12-month high of $1,085.68.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, beating the consensus estimate of $2.97 by $0.26. The firm had revenue of $1.01 billion during 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 firm's revenue for the quarter was up 109.3% on a year-over-year basis. During the same quarter last year, the firm earned $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Sell-side analysts expect that Lumentum Holdings Inc. will post 19.76 EPS for the current year.

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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