Capstone Capital Management Ltd Buys Shares of 4,291 Lumentum Holdings Inc. $LITE

Key Points

• Capstone Capital Management disclosed a new first-quarter stake in Lumentum Holdings, buying 4,291 shares valued at about $3.0 million. The position makes Lumentum the firm’s 9th-largest holding and about 2.9% of its portfolio.
• Wall Street remains constructive on Lumentum, with 14 Buy ratings and 7 Hold ratings. The consensus view is a Moderate Buy, and the average price target stands at $1,021.95.
• Lumentum reported better-than-expected quarterly EPS of $2.37 and 90.1% year-over-year revenue growth, while also guiding Q4 2026 EPS to 2.85-3.05. However, insiders have been selling shares recently, including the CFO and a director.

Capstone Capital Management Ltd bought a new stake in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The firm bought 4,291 shares of the technology company's stock, valued at approximately $3,016,000. Lumentum comprises 2.9% of Capstone Capital Management Ltd's investment portfolio, making the stock its 9th largest position.

A number of other hedge funds have also recently made changes to their positions in LITE. Frank Rimerman Advisors LLC purchased a new stake in shares of Lumentum in the 1st quarter worth approximately $498,000. Jackson Thornton Wealth Management LLC purchased a new position in Lumentum during the first quarter valued at $236,000. R Squared Ltd purchased a new position in Lumentum during the first quarter valued at $703,000. Swedbank AB boosted its holdings in Lumentum by 457.8% in the first quarter. Swedbank AB now owns 332,440 shares of the technology company's stock worth $233,626,000 after acquiring an additional 272,840 shares in the last quarter. Finally, Abel Hall LLC boosted its holdings in Lumentum by 5.5% in the first quarter. Abel Hall LLC now owns 693 shares of the technology company's stock worth $487,000 after acquiring an additional 36 shares in the last quarter. 94.05% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on LITE shares. Loop Capital increased their target price on Lumentum from $900.00 to $1,400.00 and gave the stock a "buy" rating in a research note on Tuesday, May 5th. Barclays upped their price target on shares of Lumentum from $750.00 to $1,000.00 and gave the stock an "equal weight" rating in a research note on Wednesday, May 6th. Mizuho set a $1,100.00 price objective on shares of Lumentum in a research report on Wednesday, May 6th. JPMorgan Chase & Co. lifted their target price on Lumentum from $950.00 to $1,130.00 and gave the stock an "overweight" rating in a report on Wednesday, May 6th. Finally, Citic Securities boosted their target price on Lumentum from $620.00 to $1,186.00 in a research report on Monday, May 11th. Fourteen equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,021.95.

Insiders Place Their Bets

In related news, CFO Wajid Ali sold 2,487 shares of the business's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $953.95, for a total transaction of $2,372,473.65. Following the completion of the transaction, the chief financial officer directly owned 60,951 shares in the company, valued at approximately $58,144,206.45. The trade was a 3.92% decrease in their position. The sale was disclosed in a legal filing with the SEC, 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, Director Ian Small sold 4,954 shares of the stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $868.07, for a total transaction of $4,300,418.78. Following the completion of the sale, the director directly owned 21,008 shares of the company's stock, valued at $18,236,414.56. This represents a 19.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 41,260 shares of company stock valued at $38,859,220. 0.43% of the stock is currently owned by corporate insiders.

Lumentum Trading Up 1.2%

Shares of Lumentum stock opened at $707.10 on Thursday. Lumentum Holdings Inc. has a 1-year low of $88.93 and a 1-year high of $1,085.68. The company's fifty day simple moving average is $883.55 and its 200-day simple moving average is $694.44. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97. The stock has a market capitalization of $55.01 billion, a PE ratio of 130.94 and a beta of 1.48.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, topping the consensus estimate of $2.27 by $0.10. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The firm had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.21 million. During the same period in the prior year, the business posted $0.57 EPS. Lumentum's revenue was up 90.1% on a year-over-year basis. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, equities analysts anticipate that Lumentum Holdings Inc. will post 6.4 earnings per share for the current year.

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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