Empowered Funds LLC Makes New Investment in Lumentum Holdings Inc. $LITE

Key Points

• Empowered Funds LLC acquired 4,399 Lumentum shares worth approximately $3.8 million, while institutional investors and hedge funds collectively own 94.05% of the company.
• Wall Street remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $1,053.83; recent analysts set targets as high as $1,300.
• Lumentum reported quarterly EPS of $3.23 and revenue of $1.01 billion, exceeding estimates, while strong AI data-center demand is supporting growth. Competition, elevated valuation expectations and a possible slowdown in AI infrastructure spending remain risks.

Empowered Funds LLC bought a new position in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm bought 4,399 shares of the technology company's stock, valued at approximately $3,775,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Nomura Asset Management Co. Ltd. grew its holdings in shares of Lumentum by 45.0% during the 4th quarter. Nomura Asset Management Co. Ltd. now owns 369,804 shares of the technology company's stock worth $136,306,000 after purchasing an additional 114,714 shares in the last quarter. Financiere des Professionnels Fonds d investissement inc. acquired a new position in Lumentum in the first quarter valued at about $2,046,000. Styrax Capital LP raised its stake in Lumentum by 3.6% in the first quarter. Styrax Capital LP now owns 140,000 shares of the technology company's stock valued at $98,386,000 after purchasing an additional 4,837 shares in the last quarter. Whittier Trust Co. lifted its position in Lumentum by 21,806.5% during the first quarter. Whittier Trust Co. now owns 74,044 shares of the technology company's stock worth $57,183,000 after purchasing an additional 73,706 shares during the period. Finally, Andar Capital Management HK Ltd bought a new stake in Lumentum during the fourth quarter worth about $4,325,000. 94.05% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several research firms have commented on LITE. Northland Securities raised their target price on shares of Lumentum from $1,000.00 to $1,200.00 and gave the company an "outperform" rating in a report on Wednesday, June 3rd. Stifel Nicolaus upped their price target on shares of Lumentum from $800.00 to $1,100.00 and gave the stock a "buy" rating in a report on Tuesday, May 5th. Citic Securities increased their price target on shares of Lumentum from $620.00 to $1,186.00 in a research report on Monday, May 11th. Needham & Company LLC reiterated a "buy" rating and set a $1,040.00 price target on shares of Lumentum in a research report on Wednesday, August 12th. Finally, Rosenblatt Securities reissued a "buy" rating and issued a $1,300.00 price objective on shares of Lumentum in a research note on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $1,053.83.

Insider Buying and Selling at Lumentum

In related news, insider Yuen Wupen sold 1,500 shares of Lumentum stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $827.82, for a total transaction of $1,241,730.00. Following the sale, the insider directly owned 100,434 shares in the company, valued at $83,141,273.88. This trade represents a 1.47% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 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, CEO Michael E. Hurlston sold 548 shares of the business's stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $958.66, for a total transaction of $525,345.68. Following the sale, the chief executive officer directly owned 186,951 shares in the company, valued at $179,222,445.66. The trade was a 0.29% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 64,147 shares of company stock worth $54,950,611 in the last 90 days. Corporate insiders own 0.43% of the company's stock.

Lumentum News Roundup

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: New bullish analyst coverage: Evercore initiated coverage with an “Outperform” rating and a $1,100 price target, implying substantial upside from the referenced share price. This adds to a favorable analyst backdrop, including a broader Moderate Buy consensus. Lumentum Analyst Coverage
• Positive Sentiment: AI optical demand supports growth: Lumentum is benefiting from rising demand for high-speed optical interconnects used in AI data centers. Its focus on optical circuit switching, co-packaged optics and near-package optics could expand its addressable market, although Marvell and NVIDIA remain important competitors. Lumentum AI Optics Growth
• Positive Sentiment: Strategic investment and manufacturing expansion: A multibillion-dollar AI-related investment, including a sizeable NVIDIA stake, and plans for a U.S. fabrication facility targeting 800-gigabit and 1.6-terabit optical interconnects reinforce Lumentum’s role in AI infrastructure. Lumentum AI Investment and Fab
• Neutral Sentiment: Technical setup remains constructive but demanding: After a roughly 140% gain in 2025, Lumentum is consolidating for about 15 weeks below its record high. Investors are watching for a breakout above that level as a potential new buy point. Lumentum Technical Setup
• Negative Sentiment: Competition and elevated expectations are risks: The strong AI-driven rally has increased valuation and execution expectations, while NVIDIA and Marvell are expanding in adjacent optical and connectivity markets. Any slowdown in AI infrastructure spending or difficulty scaling new products could pressure the shares.

Lumentum Price Performance

Shares of LITE opened at $868.95 on Wednesday. The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01. The stock has a market cap of $77.94 billion, a PE ratio of -10.57 and a beta of 1.50. Lumentum Holdings Inc. has a 12-month low of $125.00 and a 12-month high of $1,085.68. The business has a 50-day simple moving average of $813.06 and a two-hundred day simple moving average of $811.25.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, beating analysts' consensus estimates of $2.97 by $0.26. The firm had revenue of $1.01 billion for the quarter, compared to analyst estimates of $987.70 million. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%.The business's revenue for the quarter was up 109.3% on a year-over-year basis. During the same period last year, the firm posted $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Analysts anticipate that Lumentum Holdings Inc. will post 19.76 earnings per share for the current fiscal year.

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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