Emerald Advisers LLC Trims Stock Holdings in Lumentum Holdings Inc. $LITE

Key Points

• Emerald Advisers LLC cut its Lumentum stake by 98% in the first quarter, selling 144,914 shares and leaving it with 3,011 shares worth about $2.1 million.
• Lumentum’s latest earnings beat expectations, with EPS of $2.37 versus $2.27 estimated and revenue up 90.1% year over year; the company also guided Q4 2026 EPS to $2.85–$3.05.
• Analyst sentiment remains constructive, with multiple firms reiterating buy ratings and a consensus Moderate Buy rating, while the stock has also gained attention from the AI/data-center optical networking trend.

Emerald Advisers LLC lowered its stake in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 98.0% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 3,011 shares of the technology company's stock after selling 144,914 shares during the quarter. Emerald Advisers LLC's holdings in Lumentum were worth $2,116,000 at the end of the most recent quarter.

Other hedge funds also recently bought and sold shares of the company. Arrowstreet Capital Limited Partnership raised its stake in shares of Lumentum by 18.7% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company's stock valued at $683,661,000 after acquiring an additional 291,591 shares during the period. Geode Capital Management LLC increased its holdings in Lumentum by 9.6% in the 4th quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company's stock valued at $521,563,000 after purchasing an additional 123,265 shares during the last quarter. Situational Awareness LP increased its holdings 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. Norges Bank purchased a new stake in Lumentum in the fourth quarter valued at approximately $474,495,000. Finally, Value Aligned Research Advisors LLC purchased a new stake in Lumentum in the fourth quarter valued at approximately $432,062,000. Hedge funds and other institutional investors own 94.05% of the company's stock.

Insiders Place Their Bets

In related news, insider Vincent Retort sold 3,183 shares of the company's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $3,036,422.85. Following the sale, the insider directly owned 89,563 shares in the company, valued at approximately $85,438,623.85. This represents a 3.43% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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, insider Yuen Wupen sold 3,210 shares of the firm's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $3,062,179.50. Following the completion of the sale, the insider directly owned 81,488 shares in the company, valued at approximately $77,735,477.60. This trade represents a 3.79% decrease in their position. The SEC filing for this sale provides additional information. 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. In the last ninety days, insiders have sold 41,260 shares of company stock worth $38,859,220. Corporate insiders own 0.43% of the company's stock.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: UBS said rising data-center investment should support demand for companies like Lumentum, reinforcing the AI-optics growth narrative. ANET, CLS, EXTR, LITE stock in focus — UBS sees data center investments to drive demand, but supply constraints persist
• Positive Sentiment: Commentary highlighting Lumentum as an optical company trading like a semiconductor suggests the market is valuing it more like a high-growth AI infrastructure beneficiary. Lumentum: An Optical Company Trading Like A Semiconductor
• Positive Sentiment: Another article framed the recent AI-optical selloff as a buying opportunity, which may be encouraging dip-buying in LITE and peers. The AI Optical Selloff Is A Gift - 3 Stocks I'm Buying
• Positive Sentiment: Reports on Lumentum’s planned fiscal Q4 and full-year 2026 results keep attention on upcoming catalysts, which can support trading interest. Lumentum Announces Reporting Date for Fourth Quarter and Fiscal Year 2026 Results
• Positive Sentiment: Coverage on AI-driven optical networking demand and co-packaged optics adoption points to a favorable longer-term growth story for Lumentum.

Lumentum Stock Up 6.1%

Shares of NASDAQ LITE opened at $814.80 on Wednesday. The stock has a market cap of $63.39 billion, a P/E ratio of 150.89 and a beta of 1.48. The business's fifty day simple moving average is $876.03 and its 200-day simple moving average is $705.88. Lumentum Holdings Inc. has a 12-month low of $94.32 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 earnings results 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 analysts' expectations of $810.21 million. During the same period in the previous year, the firm posted $0.57 EPS. Lumentum's revenue for the quarter 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 6.4 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. Weiss Ratings restated a "hold (c)" rating on shares of Lumentum in a research report on Tuesday, April 21st. Jefferies Financial Group reiterated a "buy" rating and issued a $1,200.00 price objective on shares of Lumentum in a report on Wednesday, May 6th. Citigroup increased their target price on Lumentum from $800.00 to $1,100.00 and gave the stock a "buy" rating in a research note on Tuesday, April 21st. Needham & Company LLC restated a "buy" rating and set a $1,040.00 target price on shares of Lumentum in a report on Tuesday, June 9th. Finally, Raymond James Financial reaffirmed an "outperform" rating and issued a $1,014.00 target price on shares of Lumentum in a research report on Wednesday, May 6th. Fourteen investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $1,012.67.

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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