Central Pacific Bank Trust Division Lowers Stake in Lumentum Holdings Inc. $LITE

Key Points

• Central Pacific Bank Trust Division cut its Lumentum stake by 99.5%, selling 456,070 shares in Q4 and retaining just 2,379 shares worth about $877,000.
• Other institutions sharply increased or opened positions—most notably Arrowstreet (+8,579.2%), Hood River and Norges Bank—leaving hedge funds and institutional investors with about 94.05% ownership amid index/ETF rebalancing flows.
• Lumentum posted strong results (beat EPS and revenue, with revenue up 65.5% YoY), is drawing bullish analyst upgrades and a higher price target amid reports of an $8B revenue target and a major OCS contract, although insiders have been selling recently.

Central Pacific Bank Trust Division lessened its position in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 99.5% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 2,379 shares of the technology company's stock after selling 456,070 shares during the period. Central Pacific Bank Trust Division's holdings in Lumentum were worth $877,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. Arrowstreet Capital Limited Partnership grew its stake in Lumentum by 8,579.2% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company's stock worth $254,350,000 after acquiring an additional 1,545,199 shares during the period. Hood River Capital Management LLC lifted its stake in shares of Lumentum by 82.1% during the 2nd quarter. Hood River Capital Management LLC now owns 2,206,453 shares of the technology company's stock worth $209,745,000 after purchasing an additional 994,551 shares during the period. Norges Bank purchased a new position in shares of Lumentum during the 2nd quarter worth $82,983,000. Holocene Advisors LP acquired a new stake in shares of Lumentum during the third quarter worth $136,401,000. Finally, WT Asset Management Ltd boosted its holdings in shares of Lumentum by 170.0% during the third quarter. WT Asset Management Ltd now owns 710,208 shares of the technology company's stock worth $115,558,000 after purchasing an additional 447,208 shares during the last quarter. Hedge funds and other institutional investors own 94.05% of the company's stock.

Lumentum News Roundup

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Bank of America raised its price target sharply (reported as a 29% hike) and framed Lumentum as a key AI‑optics beneficiary, boosting investor confidence in the company's data‑center connectivity positioning. Article Title
• Positive Sentiment: Reports that Lumentum is pursuing an $8 billion annual revenue target and has landed a major OCS contract have fueled bullish sentiment around its optical components backlog and long‑term growth runway. Article Title
• Positive Sentiment: Analyst support increased: Rosenblatt issued a Buy rating and Morgan Stanley boosted its price target (to $595), adding further institutional validation for the stock’s outlook. Rosenblatt Buy MS PT Boost
• Positive Sentiment: Industry research highlights Lumentum’s strength in OCS and CPO product lines and an expanding AI‑era backlog — factors that could sustain revenue growth as hyperscalers shift from copper to optical solutions. Article Title
• Positive Sentiment: Anticipation of official inclusion in the S&P 500 has driven buying into LITE as index funds and ETFs rebalance, supporting near‑term demand for the shares. Article Title
• Neutral Sentiment: Technical/flow factors: Some momentum traders cite a “power inflow” trading signal that helped push the stock higher in the short term; this is supportive but may be transient. Article Title
• Negative Sentiment: Caution from some analysts: while price action is strong, certain writeups note that recent earnings‑estimate revisions and lofty valuation metrics could limit upside or make the stock vulnerable to a pullback if growth expectations slip. Article Title

Lumentum Price Performance

LITE stock opened at $706.35 on Friday. The company has a market cap of $50.43 billion, a PE ratio of 216.67 and a beta of 1.38. The company has a current ratio of 0.61, a quick ratio of 0.45 and a debt-to-equity ratio of 0.06. The stock has a 50-day moving average price of $542.15 and a two-hundred day moving average price of $349.95. Lumentum Holdings Inc. has a 12-month low of $45.65 and a 12-month high of $787.45.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings data on Tuesday, February 3rd. The technology company reported $1.67 EPS for the quarter, topping analysts' consensus estimates of $1.41 by $0.26. Lumentum had a return on equity of 17.27% and a net margin of 11.95%.The company had revenue of $665.50 million for the quarter, compared to the consensus estimate of $646.74 million. During the same period last year, the business posted $0.42 EPS. The company's quarterly revenue was up 65.5% compared to the same quarter last year. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. As a group, research analysts predict that Lumentum Holdings Inc. will post 0.03 EPS for the current year.

Insider Buying and Selling at Lumentum

In other Lumentum news, insider Vincent Retort sold 45,026 shares of Lumentum stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $591.32, for a total transaction of $26,624,774.32. Following the transaction, the insider directly owned 102,455 shares of the company's stock, valued at $60,583,690.60. The trade was a 30.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Penny Herscher sold 4,849 shares of the business's stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $535.48, for a total transaction of $2,596,542.52. Following the sale, the director owned 6,057 shares of the company's stock, valued at approximately $3,243,402.36. This represents a 44.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 65,775 shares of company stock worth $38,851,343. 0.43% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several research firms recently commented on LITE. B. Riley Financial upgraded Lumentum from a "neutral" rating to a "buy" rating and upped their target price for the company from $147.00 to $526.00 in a research note on Wednesday, February 4th. Zacks Research raised Lumentum from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, December 2nd. Citigroup lifted their price target on Lumentum to $560.00 and gave the company a "buy" rating in a report on Thursday, February 5th. UBS Group upped their price objective on shares of Lumentum from $215.00 to $455.00 and gave the company a "neutral" rating in a research note on Wednesday, February 4th. Finally, Bank of America raised their target price on shares of Lumentum to $520.00 and gave the stock a "neutral" rating in a research report on Wednesday, February 4th. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $575.06.

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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