BOCHK Asset Management Ltd Acquires 4,077 Shares of Lumentum Holdings Inc. $LITE

Key Points

• BOCHK Asset Management increased its Lumentum stake by 6,683.6% in the third quarter, acquiring 4,077 additional shares and bringing its total holdings to 4,138 shares valued at approximately $4.02 million. Institutional investors collectively own 94.05% of Lumentum.
• Lumentum reported quarterly EPS of $4.57, beating estimates of $4.22, while revenue reached $1.26 billion and rose 136.5% year over year, reflecting strong demand for optical components used in AI data centers.
• Marvell agreed to acquire Lumentum in an all-stock transaction valued at roughly $115 billion including debt. The deal offers Lumentum shareholders 4.5 Marvell shares per Lumentum share, but its value remains tied to Marvell’s stock price and faces concerns about overpayment, execution, and shareholder litigation.

BOCHK Asset Management Ltd increased its holdings in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 6,683.6% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 4,138 shares of the technology company's stock after acquiring an additional 4,077 shares during the quarter. BOCHK Asset Management Ltd's holdings in Lumentum were worth $4,019,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently bought and sold shares of LITE. Sachetta LLC grew its position in Lumentum by 118.8% during the 1st quarter. Sachetta LLC now owns 35 shares of the technology company's stock worth $25,000 after purchasing an additional 19 shares during the last quarter. Burkett Financial Services LLC acquired a new position in Lumentum in the third quarter valued at $28,000. Signature Equity Partners LLC raised its holdings in shares of Lumentum by 220.0% in the third quarter. Signature Equity Partners LLC now owns 32 shares of the technology company's stock valued at $31,000 after buying an additional 22 shares during the last quarter. Meeder Asset Management Inc. purchased a new stake in shares of Lumentum in the second quarter valued at about $40,000. Finally, Latitude Advisors LLC purchased a new stake in shares of Lumentum in the third quarter valued at about $40,000. Hedge funds and other institutional investors own 94.05% of the company's stock.

Lumentum Price Performance

Shares of NASDAQ:LITE opened at $684.40 on Tuesday. Lumentum Holdings Inc. has a 52 week low of $184.20 and a 52 week high of $1,143.00. The company has a 50-day moving average price of $919.26 and a 200 day moving average price of $796.61. The company has a market cap of $61.99 billion, a P/E ratio of -8.33 and a beta of 1.53. The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE - Get Free Report) last issued its earnings results on Monday, November 2nd. The technology company reported $4.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.22 by $0.35. The business had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.26 billion. 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 136.5% on a year-over-year basis. During the same period in the prior year, the business posted $1.10 EPS. Research analysts predict that Lumentum Holdings Inc. will post 19.79 earnings per share for the current year.

Analyst Upgrades and Downgrades

LITE has been the topic of a number of research reports. Needham & Company LLC reissued a "buy" rating and set a $1,040.00 price target on shares of Lumentum in a report on Wednesday, August 12th. Evercore began coverage on Lumentum in a research report on Monday, August 31st. They set an "outperform" rating and a $1,100.00 price objective for the company. UBS Group set a $820.00 target price on Lumentum in a report on Wednesday, August 12th. Zacks Research cut Lumentum from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 12th. Finally, Citigroup upped their price target on Lumentum from $1,200.00 to $1,400.00 and gave the stock a "buy" rating in a research note on Monday, September 28th. Two analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Lumentum currently has a consensus rating of "Moderate Buy" and an average target price of $1,074.92.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum reported fiscal first-quarter earnings of $4.57 per share, exceeding the $4.22 analyst consensus, while revenue of $1.26 billion also topped expectations. Revenue increased 136.5% year over year, highlighting strong demand for the company’s optical components used in AI data centers. Lumentum earnings report
• Positive Sentiment: Marvell Technology agreed to acquire Lumentum in an all-stock transaction valued at approximately $115 billion including debt, combining Marvell’s custom silicon with Lumentum’s lasers and optical networking products. The companies say the deal will create a major AI-connectivity platform positioned to benefit from continued data-center spending. Marvell Lumentum AI deal
• Neutral Sentiment: Under the agreement, Lumentum shareholders would receive 4.5 Marvell shares for each Lumentum share and own approximately 33% of the combined company. Because the consideration is entirely in Marvell stock, LITE’s eventual value will remain sensitive to Marvell’s share price until the transaction closes. TechCrunch acquisition report
• Negative Sentiment: Investors questioned whether Marvell is overpaying and whether the large transaction can generate sufficient returns amid growing concerns that AI infrastructure spending may not meet elevated expectations. The market’s negative reaction to Marvell also pressured the stock-based value offered to Lumentum holders. Market reaction to Marvell acquisition
• Negative Sentiment: Shareholder law firms have begun reviewing whether the proposed consideration fairly values Lumentum and whether the deal limits competing offers or provides excessive benefits to insiders, adding potential execution and regulatory risk. Lumentum shareholder investigation

Insider Buying and Selling at Lumentum

In related news, CFO Wajid Ali sold 24,542 shares of the business's stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $1,048.50, for a total value of $25,732,287.00. Following the sale, the chief financial officer directly owned 75,074 shares in the company, valued at $78,715,089. The trade was a 24.64% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 307 shares of the business's stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $945.00, for a total transaction of $290,115.00. Following the completion of the sale, the insider owned 108,320 shares in the company, valued at $102,362,400. This represents a 0.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 94,496 shares of company stock worth $85,978,498 in the last three months. 0.28% of the stock is owned by corporate insiders.

Lumentum Profile

Lumentum Holdings Inc is a technology company that designs and manufactures optical and photonic products for communications networks, industrial applications, and consumer electronics. Its portfolio includes optical components, modules, and subsystems used in fiber-optic networks, data centers, cloud computing infrastructure, telecommunications equipment, and high-speed connectivity systems.

The company also develops laser products for applications such as industrial processing, sensing, three-dimensional imaging, and other specialized commercial and consumer uses.

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