Cim Investment Management Inc. Reduces Holdings in Lumentum Holdings Inc. $LITE

Key Points

• Cim Investment Management cut its Lumentum stake by 84.1% in the first quarter, selling 3,892 shares and retaining 738 shares valued at approximately $519,000. Institutional investors collectively own 94.05% of the company.
• Analyst sentiment remains positive but mixed: Lumentum has a consensus “Moderate Buy” rating from 21 analysts and an average price target of $1,012.67, with recent targets ranging from $800 to $1,400.
• Lumentum reported quarterly EPS of $2.37, exceeding estimates by $0.10, while revenue rose 90.1% year over year to $808.4 million. Insiders have nevertheless sold $38.9 million of shares over the past 90 days.

Cim Investment Management Inc. reduced its stake in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 84.1% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 738 shares of the technology company's stock after selling 3,892 shares during the period. Cim Investment Management Inc.'s holdings in Lumentum were worth $519,000 as of its most recent SEC filing.

Several other hedge funds also recently bought and sold shares of the stock. Arrowstreet Capital Limited Partnership lifted its position in shares of Lumentum by 8,579.2% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company's stock valued at $254,350,000 after acquiring an additional 1,545,199 shares in the last quarter. Norges Bank purchased a new stake in Lumentum during the 4th quarter worth about $474,495,000. Value Aligned Research Advisors LLC purchased a new stake in Lumentum during the 4th quarter worth about $432,062,000. Situational Awareness LP raised its stake in Lumentum by 210.9% in the 4th quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company's stock valued at $478,577,000 after purchasing an additional 880,800 shares during the last quarter. Finally, Aspex Management HK Ltd acquired a new position in Lumentum in the 4th quarter valued at about $251,363,000. Hedge funds and other institutional investors own 94.05% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the stock. Loop Capital raised their price target on shares of Lumentum from $900.00 to $1,400.00 and gave the stock a "buy" rating in a research note on Tuesday, May 5th. TD Cowen cut their price objective on shares of Lumentum from $995.00 to $800.00 and set a "hold" rating for the company in a research report on Monday, July 13th. B. Riley Financial reissued a "buy" rating on shares of Lumentum in a research note on Friday, May 1st. Raymond James Financial reaffirmed an "outperform" rating and issued a $1,014.00 target price on shares of Lumentum in a research note on Wednesday, May 6th. Finally, Zacks Research downgraded Lumentum from a "strong-buy" rating to a "hold" rating in a report on Monday, July 6th. Fourteen research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat.com, Lumentum currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,012.67.

Insider Activity at Lumentum

In other Lumentum news, Director Ian Small sold 4,954 shares of Lumentum stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $868.07, for a total value of $4,300,418.78. Following the transaction, the director owned 21,008 shares in the company, valued at $18,236,414.56. This trade represents a 19.08% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Vincent Retort sold 3,183 shares of the company's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $3,036,422.85. Following the sale, 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 disclosure for this sale is available in the SEC filing. 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. Insiders have sold a total of 41,260 shares of company stock valued at $38,859,220 over the last 90 days. 0.43% of the stock is currently owned by insiders.

Lumentum Trading Up 15.1%

NASDAQ LITE opened at $693.24 on Friday. Lumentum Holdings Inc. has a 12 month low of $101.61 and a 12 month high of $1,085.68. The company has a 50-day moving average of $825.72 and a 200-day moving average of $736.71. 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 company has a market cap of $53.93 billion, a P/E ratio of 128.38 and a beta of 1.48.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, topping the consensus estimate of $2.27 by $0.10. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The business had revenue of $808.40 million for the quarter, compared to analyst estimates of $810.21 million. During the same period in the prior year, the firm posted $0.57 EPS. The company'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 predict that Lumentum Holdings Inc. will post 6.42 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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