Evergreen Quality Fund GP Ltd. Makes New $75.05 Million Investment in Lumentum Holdings Inc. $LITE

Key Points

• Evergreen Quality Fund GP Ltd. disclosed a new stake in Lumentum Holdings, buying 203,600 shares valued at about $75.05 million. The position represented roughly 0.29% of Lumentum and about 1.5% of Evergreen’s portfolio.
• Several other institutional investors also added to their Lumentum holdings, and overall hedge funds and other institutions own 94.05% of the company. Insider selling was notable as well, with executives Vincent Retort and Jae Kim selling shares under Rule 10b5-1 plans.
• Analyst sentiment remains positive: Lumentum has a “Moderate Buy” consensus rating with a target price of $1,021.95. The company also recently beat earnings estimates, reporting $2.37 EPS versus $2.27 expected, while revenue rose 90.1% year over year.

Evergreen Quality Fund GP Ltd. purchased a new stake in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 203,600 shares of the technology company's stock, valued at approximately $75,045,000. Lumentum comprises about 1.5% of Evergreen Quality Fund GP Ltd.'s holdings, making the stock its 17th largest holding. Evergreen Quality Fund GP Ltd. owned 0.29% of Lumentum at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in the company. Parallel Advisors LLC increased its holdings in Lumentum by 16.0% in the 4th quarter. Parallel Advisors LLC now owns 326 shares of the technology company's stock worth $120,000 after acquiring an additional 45 shares during the last quarter. Allworth Financial LP increased its stake in shares of Lumentum by 6.4% in the third quarter. Allworth Financial LP now owns 784 shares of the technology company's stock worth $128,000 after purchasing an additional 47 shares in the last quarter. UMB Bank n.a. raised its position in shares of Lumentum by 5.2% in the fourth quarter. UMB Bank n.a. now owns 968 shares of the technology company's stock valued at $357,000 after purchasing an additional 48 shares during the period. Truvestments Capital LLC lifted its stake in shares of Lumentum by 300.0% during the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company's stock valued at $28,000 after buying an additional 57 shares in the last quarter. Finally, Oregon Public Employees Retirement Fund lifted its stake in shares of Lumentum by 0.4% during the 4th quarter. Oregon Public Employees Retirement Fund now owns 14,130 shares of the technology company's stock valued at $5,208,000 after buying an additional 60 shares in the last quarter. Hedge funds and other institutional investors own 94.05% of the company's stock.

Insider Activity

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 value of $3,036,422.85. Following the transaction, 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 document filed 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, SVP Jae Kim sold 1,422 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 $1,356,516.90. Following the completion of the sale, the senior vice president directly owned 32,333 shares in the company, valued at $30,844,065.35. This represents a 4.21% decrease in their ownership of the stock. 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 quarter, insiders have sold 41,260 shares of company stock worth $38,859,220. Company insiders own 0.43% of the company's stock.

Wall Street Analyst Weigh In

LITE has been the subject of a number of recent research reports. Morgan Stanley lifted their price objective on shares of Lumentum from $710.00 to $900.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 6th. Citigroup raised their price target on Lumentum from $800.00 to $1,100.00 and gave the stock a "buy" rating in a report on Tuesday, April 21st. B. Riley Financial reiterated a "buy" rating on shares of Lumentum in a research report on Friday, May 1st. BNP Paribas Exane boosted their price objective on Lumentum from $1,040.00 to $1,300.00 in a research note on Wednesday, May 6th. Finally, Mizuho set a $1,100.00 price objective on Lumentum in a report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $1,021.95.

Lumentum Trading Down 0.6%

Lumentum stock opened at $869.98 on Thursday. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14. Lumentum Holdings Inc. has a fifty-two week low of $86.57 and a fifty-two week high of $1,085.68. The stock has a market cap of $67.68 billion, a P/E ratio of 161.11 and a beta of 1.47. The firm's fifty day moving average price is $903.17 and its 200-day moving average price is $644.68.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, beating 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 company had revenue of $808.40 million during the quarter, compared to analyst estimates of $810.21 million. During the same quarter last year, the company earned $0.57 earnings per share. The firm's quarterly revenue was up 90.1% on a year-over-year basis. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. Equities research analysts forecast that Lumentum Holdings Inc. will post 6.4 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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