Donoghue Forlines LLC Makes New $2.31 Million Investment in Lumentum Holdings Inc. $LITE

Key Points

• Donoghue Forlines LLC disclosed a new position in Lumentum Holdings, buying 6,261 shares valued at about $2.31 million in the fourth quarter.
• Lumentum continues to draw institutional interest, with 94.05% of shares held by institutions, while insiders have been net sellers over the last three months.
• The company’s outlook appears constructive: Lumentum was added to the Nasdaq-100, upgraded to Zacks Rank #1 (Strong Buy), and reported quarterly earnings that beat EPS estimates while revenue rose sharply year over year.

Donoghue Forlines LLC purchased a new position in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) during the fourth quarter, according to its most recent 13F filing with the SEC. The institutional investor purchased 6,261 shares of the technology company's stock, valued at approximately $2,308,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of LITE. Advisors Asset Management Inc. boosted its holdings in shares of Lumentum by 36.8% during the 1st quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company's stock worth $59,000 after buying an additional 254 shares in the last quarter. NewEdge Advisors LLC boosted its holdings in shares of Lumentum by 109.9% during the 1st quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company's stock worth $747,000 after buying an additional 6,275 shares in the last quarter. Empowered Funds LLC boosted its holdings in shares of Lumentum by 9.1% during the 1st quarter. Empowered Funds LLC now owns 8,139 shares of the technology company's stock worth $507,000 after buying an additional 680 shares in the last quarter. Hsbc Holdings PLC bought a new position in shares of Lumentum during the 2nd quarter worth approximately $298,000. Finally, Arrowstreet Capital Limited Partnership bought a new position in shares of Lumentum during the 2nd quarter worth approximately $1,712,000. 94.05% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In related news, insider Vincent Retort sold 3,441 shares of the stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $545.78, for a total value of $1,878,028.98. Following the completion of the sale, the insider directly owned 95,975 shares of the company's stock, valued at approximately $52,381,235.50. This represents a 3.46% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Ian Small sold 3,500 shares of the stock in a transaction on Friday, May 8th. The shares were sold at an average price of $911.17, for a total value of $3,189,095.00. Following the completion of the sale, the director directly owned 25,962 shares of the company's stock, valued at $23,655,795.54. The trade was a 11.88% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 29,333 shares of company stock worth $24,049,017 in the last three months. 0.43% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

LITE has been the topic of a number of research analyst reports. BNP Paribas Exane increased their price target on Lumentum from $1,040.00 to $1,300.00 in a report on Wednesday, May 6th. Citic Securities upped their target price on Lumentum from $620.00 to $1,186.00 in a research report on Monday. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Lumentum in a research report on Tuesday, April 21st. Northland Securities set a $1,000.00 target price on Lumentum in a research report on Monday, April 20th. Finally, Morgan Stanley upped their target price on Lumentum from $710.00 to $900.00 and gave the stock an "equal weight" rating in a research report on Wednesday, May 6th. Thirteen equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $1,012.43.

Key Headlines Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum was added to the Nasdaq-100, which can trigger buying from index funds and boost visibility with large institutional investors. Lumentum Joins the Nasdaq-100 Index®, Achieving New Milestone in Global Growth
• Positive Sentiment: Lumentum was upgraded to Zacks Rank #1 (Strong Buy), reflecting improving earnings expectations and reinforcing momentum-buying interest. What Makes Lumentum (LITE) a New Strong Buy Stock
• Positive Sentiment: Commentary highlighted that Lumentum’s Components business is accelerating, with AI optics demand surging and key products sold out, suggesting stronger revenue potential ahead. Lumentum's Components Business Accelerates: More Upside Ahead?
• Positive Sentiment: Northland Securities raised earnings estimates for Lumentum, adding to the view that the company’s profit outlook is improving. Lumentum stock report
• Neutral Sentiment: Recent coverage also notes that Lumentum’s strong rally has pushed the stock to fresh highs, which can attract momentum buyers but also raise valuation questions.
• Neutral Sentiment: Insider selling was reported this week, but the transactions were made under pre-arranged trading plans, so they appear less likely to signal a major change in fundamentals.

Lumentum Trading Down 2.8%

NASDAQ LITE opened at $1,001.81 on Friday. The firm has a market capitalization of $77.94 billion, a P/E ratio of 185.52 and a beta of 1.53. The business has a fifty day simple moving average of $804.16 and a 200 day simple moving average of $532.16. Lumentum Holdings Inc. has a 12 month low of $71.04 and a 12 month high of $1,085.68. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01.

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

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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