Broad Peak Investment Advisers Pte Ltd Cuts Stock Position in Lumentum Holdings Inc. $LITE

Key Points

• Broad Peak Investment Advisers cut its stake in Lumentum by 55.4% in Q4, selling 240,200 shares and leaving it with 193,580 shares (~$71.35M), which represents 12.8% of the fund’s portfolio.
• Lumentum reported strong quarterly results, beating estimates with $1.67 EPS versus $1.41 expected and revenue of $665.5M (up 65.5% YoY), and set Q3 2026 guidance of 2.150–2.350 EPS.
• Analyst sentiment has turned bullish with several price target raises (e.g., Susquehanna to $1,100, Needham to $1,040, Northland $1,000), leaving a MarketBeat consensus of Moderate Buy and a $757.25 price target while shares trade near $881.64 (market cap ~$62.95B).

Broad Peak Investment Advisers Pte Ltd lessened its holdings in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 55.4% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 193,580 shares of the technology company's stock after selling 240,200 shares during the period. Lumentum makes up 12.8% of Broad Peak Investment Advisers Pte Ltd's portfolio, making the stock its 2nd biggest position. Broad Peak Investment Advisers Pte Ltd owned approximately 0.27% of Lumentum worth $71,352,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Federated Hermes Inc. increased its stake in shares of Lumentum by 7,168.8% in the third quarter. Federated Hermes Inc. now owns 362,352 shares of the technology company's stock valued at $58,958,000 after buying an additional 357,367 shares during the period. FengHe Fund Management Pte. Ltd. acquired a new stake in shares of Lumentum in the third quarter valued at about $71,771,000. Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of Lumentum in the fourth quarter valued at about $6,755,000. Pacer Advisors Inc. acquired a new stake in shares of Lumentum in the third quarter valued at about $1,512,000. Finally, Headwater Capital Co Ltd acquired a new stake in shares of Lumentum in the third quarter valued at about $20,339,000. Institutional investors and hedge funds own 94.05% of the company's stock.

Lumentum Stock Up 4.1%

Shares of NASDAQ:LITE opened at $881.64 on Friday. The business's 50 day simple moving average is $739.76 and its two-hundred day simple moving average is $462.54. The firm has a market cap of $62.95 billion, a P/E ratio of 270.44 and a beta of 1.38. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.45 and a current ratio of 0.61. Lumentum Holdings Inc. has a 52-week low of $56.80 and a 52-week high of $960.00.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its quarterly earnings results on Tuesday, February 3rd. The technology company reported $1.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.41 by $0.26. The business had revenue of $665.50 million for the quarter, compared to analyst estimates of $646.74 million. Lumentum had a return on equity of 17.27% and a net margin of 11.95%.The company's quarterly revenue was up 65.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.42 earnings per share. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. As a group, research analysts forecast that Lumentum Holdings Inc. will post 5.87 EPS for the current fiscal year.

Analysts Set New Price Targets

Several brokerages have recently weighed in on LITE. B. Riley Financial raised Lumentum from a "neutral" rating to a "buy" rating and increased their price target for the company from $147.00 to $526.00 in a research note on Wednesday, February 4th. Zacks Research cut Lumentum from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 13th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Lumentum in a research note on Tuesday. Northland Securities set a $1,000.00 target price on Lumentum in a research note on Monday. Finally, Susquehanna raised their target price on Lumentum from $550.00 to $1,100.00 and gave the stock a "positive" rating in a research note on Monday, April 20th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, Lumentum presently has a consensus rating of "Moderate Buy" and a consensus price target of $757.25.

Key Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Needham boosts its price target to $1,040, signaling stronger sell‑side conviction and helping lift sentiment among growth/optics investors. Needham & Company LLC Boosts Lumentum NASDAQ: LITE Price Target to $1,040.00
• Positive Sentiment: Northland Securities materially raised FY2027 EPS estimates (from $10.69 to $14.59 per share in its note), reflecting higher revenue/profit expectations and reinforcing the post‑earnings re‑rating. Northland Securities Comments on Lumentum Q1 Earnings
• Positive Sentiment: Coverage actions and analyst upgrades are directly supporting the move higher — press noting LITE trading up after an upgrade helped trigger buying. Lumentum NASDAQ: LITE Trading 4.4% Higher After Analyst Upgrade
• Positive Sentiment: Commercial demand strength: reports indicate Lumentum is “sold out” through 2027 on strong demand for its optical components, supporting revenue visibility and backlog-driven upside. Lumentum Holdings (LITE) Sold Out Through 2027 on High Demand
• Neutral Sentiment: Media/analyst takeaways: an MSN piece questions whether Lumentum can sustain its massive multi‑year run — useful for framing valuation concerns but not new fundamental data. Does Lumentum still have gas in its tank after a massive run?
• Neutral Sentiment: Popular culture/flow: Jim Cramer referenced “stocks that got away” on Mad Money — marginal for fundamentals but can influence retail attention/flows. Cramer Names 'The Stocks That Got Away' — SanDisk Is Number 1
• Negative Sentiment: Seeking Alpha highlights a potential hidden liquidity risk in the footnotes — investors should review the filing specifics; such risks can amplify downside if they materialize. Lumentum: A Hidden Liquidity Risk Buried In The Footnotes
• Negative Sentiment: Tradr launched a 2x inverse ETF on LITE (ticker LITZ), which makes it easier for traders to bet against or amplify intraday moves — this can increase volatility and shorting pressure during pullbacks. Tradr Debuts Short ETFs on Lumentum and Sandisk

Insider Buying and Selling

In other news, insider Vincent Retort sold 45,026 shares of the firm's stock in a transaction that occurred on Thursday, February 12th. The stock was sold at an average price of $591.32, for a total value of $26,624,774.32. Following the transaction, the insider owned 102,455 shares in the company, valued at $60,583,690.60. This trade represents a 30.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Wajid Ali sold 5,302 shares of the firm's stock in a transaction that occurred on Friday, February 27th. The shares were sold at an average price of $691.13, for a total value of $3,664,371.26. Following the completion of the transaction, the chief financial officer owned 66,287 shares in the company, valued at $45,812,934.31. This represents a 7.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 65,775 shares of company stock worth $38,851,343 over the last three months. Company insiders own 0.43% of the company's stock.

Lumentum Company 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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