Gateway Investment Advisers LLC Grows Stock Position in Lumentum Holdings Inc. $LITE

Key Points

• Gateway Investment Advisers LLC boosted its stake in Lumentum by 78.9% to 17,129 shares (worth about $6.31M), while institutional ownership sits at about 94.05% with large funds like Arrowstreet and Assenagon making multi‑hundred‑million dollar additions.
• Wall Street has grown more bullish — multiple firms raised price targets and issued buy/overweight calls, leaving Lumentum with a consensus rating of "Moderate Buy" and a consensus price target of about $1,003.75.
• Lumentum beat Q3 estimates (EPS $2.37 vs. $2.27) and reported revenue up roughly 90% year‑over‑year, gave strong guidance (Q4 2026 EPS 2.85–3.05) and cited robust cloud/AI demand amid supply constraints.

Gateway Investment Advisers LLC increased its holdings in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 78.9% during the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 17,129 shares of the technology company's stock after buying an additional 7,554 shares during the period. Gateway Investment Advisers LLC's holdings in Lumentum were worth $6,314,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also made changes to their positions in LITE. Arrowstreet Capital Limited Partnership boosted its position in shares of Lumentum by 8,579.2% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company's stock worth $254,350,000 after buying an additional 1,545,199 shares in the last quarter. Assenagon Asset Management S.A. boosted its position in shares of Lumentum by 707.0% in the 4th quarter. Assenagon Asset Management S.A. now owns 994,478 shares of the technology company's stock worth $366,555,000 after buying an additional 871,249 shares in the last quarter. Holocene Advisors LP purchased a new stake in shares of Lumentum in the 3rd quarter worth about $136,401,000. WT Asset Management Ltd boosted its position in shares of Lumentum by 170.0% in the 3rd quarter. WT Asset Management Ltd now owns 710,208 shares of the technology company's stock worth $115,558,000 after buying an additional 447,208 shares in the last quarter. Finally, FengHe Fund Management Pte. Ltd. purchased a new position in Lumentum in the 3rd quarter valued at about $71,771,000. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of research firms have issued reports on LITE. Bank of America upped their target price on shares of Lumentum to $520.00 and gave the company a "neutral" rating in a report on Wednesday, February 4th. UBS Group upped their target price on shares of Lumentum from $455.00 to $960.00 and gave the company a "neutral" rating in a report on Wednesday. Citigroup upped their target price on shares of Lumentum from $800.00 to $1,100.00 and gave the company a "buy" rating in a report on Tuesday, April 21st. Rosenblatt Securities upped their target price on shares of Lumentum from $900.00 to $1,300.00 and gave the company a "buy" rating in a report on Wednesday. Finally, JPMorgan Chase & Co. upped their target price on shares of Lumentum from $950.00 to $1,130.00 and gave the company an "overweight" rating in a report on Wednesday. Thirteen research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, Lumentum has a consensus rating of "Moderate Buy" and a consensus price target of $1,003.75.

Insider Activity at Lumentum

In other news, insider Vincent Retort sold 45,026 shares of the stock in a transaction dated Thursday, February 12th. The shares were sold at an average price of $591.32, for a total transaction of $26,624,774.32. Following the transaction, the insider directly owned 102,455 shares in the company, valued at $60,583,690.60. This represents a 30.53% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Wajid Ali sold 5,302 shares of the stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $691.13, for a total transaction of $3,664,371.26. Following the transaction, the chief financial officer owned 66,287 shares in the company, valued at approximately $45,812,934.31. The trade was a 7.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 60,926 shares of company stock valued at $36,254,801. Insiders own 0.43% of the company's stock.

Lumentum Price Performance

NASDAQ:LITE opened at $892.25 on Friday. The firm has a market cap of $63.71 billion, a price-to-earnings ratio of 165.23 and a beta of 1.53. The company has a current ratio of 1.14, a quick ratio of 0.45 and a debt-to-equity ratio of 0.01. The company's 50-day moving average is $776.13 and its two-hundred day moving average is $502.93. Lumentum Holdings Inc. has a 12-month low of $63.98 and a 12-month high of $1,021.00.

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. The business had revenue of $808.40 million for the quarter, compared to analyst estimates of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The company's revenue was up 90.1% on a year-over-year basis. 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. Research analysts expect that Lumentum Holdings Inc. will post 5.87 EPS for the current year.

Key Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Q3 results beat and strong guidance — Lumentum reported an EPS beat and revenue up ~90% year‑over‑year driven by cloud/AI demand; management forecasted continued strength and a ramp of 1.6T transceiver shipments into fiscal Q4, supporting near‑term growth expectations. LITE Q3 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Drop
• Positive Sentiment: Wall of bullish analyst action — multiple firms raised price targets and issued buy/overweight calls (Rothschild Redburn PT $1,270; BNP Paribas/Exane to $1,300; Rosenblatt to $1,300; Loop Capital to $1,400; JPMorgan to $1,130; Barclays to $1,000; Craig Hallum to $1,150), signaling strong conviction on longer‑term AI/data‑center demand. Rothschild Redburn Gives Lumentum (LITE) a Buy Rating Craig Hallum Adjusts Price Target
• Neutral Sentiment: Demand vs. supply narrative — analysts note demand is exceeding supply (and the company flagged customer commitments and sector updates), which supports revenue durability but could keep near‑term delivery constraints and backlog dynamics in focus. Lumentum continues to see demand exceeding supply
• Negative Sentiment: Profit‑taking and optics trade cooling — after the strong beat and guidance, investors rotated out of optics winners today; Lumentum moved down alongside peers as the AI/optics trade cooled, amplifying volatility. Applied Optoelectronics Crashes 14%, Coherent Slides 10%, Lumentum Falls 7% as Optics Trade Cools
• Negative Sentiment: Expectations vs. growth — some commentary and investor reaction suggest the stock is pricing very high growth already; a few writeups questioned whether expectations may be outrunning sustainable near‑term execution, which can prompt short‑term selling despite upside longer term. Lumentum falls 5% after results: are expectations outrunning growth?

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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