CenterBook Partners LP Makes New Investment in Lumentum Holdings Inc. $LITE

Key Points

• CenterBook Partners LP opened a new position in Lumentum Holdings, buying 23,497 shares valued at about $8.66 million in the fourth quarter.
• Institutional interest in Lumentum remains strong, with several large investors adding stakes and institutions now owning 94.05% of the company.
• The stock has seen both insider selling and upbeat fundamentals: insiders sold shares over the past 90 days, but Lumentum recently beat earnings estimates and analysts currently rate it Moderate Buy with an average target price of $1,021.95.

CenterBook Partners LP bought a new position in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) in the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 23,497 shares of the technology company's stock, valued at approximately $8,661,000.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in LITE. Arrowstreet Capital Limited Partnership boosted its position in 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 worth $254,350,000 after purchasing an additional 1,545,199 shares during the period. Norges Bank bought a new position in Lumentum during the fourth quarter worth about $474,495,000. Situational Awareness LP boosted its position 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 period. Assenagon Asset Management S.A. boosted its position in Lumentum by 707.0% during the fourth quarter. Assenagon Asset Management S.A. now owns 994,478 shares of the technology company's stock worth $366,555,000 after purchasing an additional 871,249 shares during the period. Finally, Holocene Advisors LP bought a new position in Lumentum during the third quarter worth about $136,401,000. Institutional investors own 94.05% of the company's stock.

Insider Activity at Lumentum

In other news, insider Vincent Retort sold 3,183 shares of the business's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $953.95, for a total transaction of $3,036,422.85. Following the completion of the transaction, the insider owned 89,563 shares of the company's stock, valued at approximately $85,438,623.85. The trade was a 3.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 Brian Lillie sold 11,951 shares of the business's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $981.64, for a total value of $11,731,579.64. Following the transaction, the director directly owned 13,959 shares of the company's stock, valued at $13,702,712.76. The trade was a 46.13% 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. Insiders have sold 41,260 shares of company stock valued at $38,859,220 in the last ninety days. Insiders own 0.43% of the company's stock.

Lumentum Price Performance

LITE stock opened at $863.66 on Monday. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01. The firm has a market capitalization of $67.19 billion, a PE ratio of 159.94 and a beta of 1.47. Lumentum Holdings Inc. has a twelve month low of $80.39 and a twelve month high of $1,085.68. The stock has a 50-day simple moving average of $880.29 and a two-hundred day simple moving average of $610.37.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, beating analysts' consensus estimates of $2.27 by $0.10. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The business had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.21 million. During the same quarter in the previous year, the firm earned $0.57 EPS. The company's quarterly revenue was up 90.1% compared to the same quarter last year. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, equities analysts predict that Lumentum Holdings Inc. will post 6.49 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of brokerages have weighed in on LITE. Mizuho set a $1,100.00 target price on shares of Lumentum in a research report on Wednesday, May 6th. Citic Securities lifted their target price on Lumentum from $620.00 to $1,186.00 in a report on Monday, May 11th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Lumentum in a report on Tuesday, April 21st. Susquehanna lifted their target price on Lumentum from $550.00 to $1,100.00 and gave the company a "positive" rating in a report on Monday, April 20th. Finally, Morgan Stanley lifted their target price on Lumentum from $710.00 to $900.00 and gave the company an "equal weight" rating in a report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, Lumentum presently has a consensus rating of "Moderate Buy" and an average target price of $1,021.95.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Northland Securities raised its price target on Lumentum to $1,200 from $1,000 and kept an outperform rating, reinforcing the bullish analyst view on the stock. Article Title
• Positive Sentiment: Lumentum announced a $650.4 million private exchange of convertible notes, which may reduce financing overhang and improve balance-sheet flexibility. Article Title
• Positive Sentiment: Analyst sentiment remains favorable overall, with Lumentum holding an average rating of “Moderate Buy” and multiple firms maintaining positive price targets. Article Title
• Positive Sentiment: Investor enthusiasm continues around Lumentum’s role in AI optical interconnects, a narrative that has supported the stock’s longer-term move. Article Title
• Neutral Sentiment: Director Isaac Hosojiro Harris sold 1,416 shares in a pre-arranged 10b5-1 plan; while routine, insider selling can still make some investors cautious. Article Title
• Neutral Sentiment: Articles asking why LITE has been softer since its last earnings report mainly point to post-earnings digestion and valuation, rather than a new fundamental problem. Article Title

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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