Keynote Financial Services LLC Cuts Stock Holdings in Lumentum Holdings Inc. $LITE

Key Points

• Keynote Financial Services LLC trimmed its Lumentum stake by 22.9% in the fourth quarter, selling 1,847 shares and leaving it with 6,213 shares worth about $2.29 million.
• Despite the sale, institutional ownership remains very high, with hedge funds and other institutions holding about 94.05% of Lumentum shares. Several large investors, including Vanguard, Arrowstreet, Geode, and Norges Bank, either added to or initiated positions.
• Analysts remain broadly bullish on Lumentum, with a consensus rating of Moderate Buy and an average price target of $1,021.95. The company also recently beat quarterly EPS estimates and posted 90.1% year-over-year revenue growth.

Keynote Financial Services LLC reduced its position in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 22.9% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 6,213 shares of the technology company's stock after selling 1,847 shares during the period. Lumentum accounts for about 1.3% of Keynote Financial Services LLC's portfolio, making the stock its 16th largest holding. Keynote Financial Services LLC's holdings in Lumentum were worth $2,290,000 at the end of the most recent reporting period.

A number of other large investors have also made changes to their positions in the stock. Vanguard Group Inc. increased its holdings in shares of Lumentum by 0.6% in the third quarter. Vanguard Group Inc. now owns 7,485,282 shares of the technology company's stock valued at $1,217,930,000 after purchasing an additional 41,975 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in shares of Lumentum by 8,579.2% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company's stock valued at $254,350,000 after purchasing an additional 1,545,199 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Lumentum by 9.6% in the fourth 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 shares of Lumentum by 210.9% in the fourth 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. Finally, Norges Bank acquired a new stake in shares of Lumentum in the fourth quarter valued at approximately $474,495,000. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on LITE shares. Morgan Stanley increased their price target on Lumentum from $710.00 to $900.00 and gave the company an "equal weight" rating in a report on Wednesday, May 6th. Needham & Company LLC reaffirmed a "buy" rating and issued a $1,040.00 price target on shares of Lumentum in a report on Tuesday. Raymond James Financial reaffirmed an "outperform" rating and issued a $1,014.00 price target on shares of Lumentum in a report on Wednesday, May 6th. Rosenblatt Securities increased their price target on Lumentum from $900.00 to $1,300.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. Finally, Jefferies Financial Group reaffirmed a "buy" rating and issued a $1,200.00 price target on shares of Lumentum in a report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, Lumentum currently has an average rating of "Moderate Buy" and a consensus price target of $1,021.95.

Insider Buying and Selling

In related news, Director Ian Small sold 4,954 shares of the stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $868.07, for a total value of $4,300,418.78. Following the completion of the transaction, the director directly owned 21,008 shares in the company, valued at approximately $18,236,414.56. This represents a 19.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Brian Lillie sold 11,951 shares of the stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $981.64, for a total value of $11,731,579.64. Following the completion of the transaction, the director owned 13,959 shares of the company's stock, valued at $13,702,712.76. The trade was a 46.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 41,260 shares of company stock valued at $38,859,220 in the last ninety days. Company insiders own 0.43% of the company's stock.

Lumentum Trading Up 3.6%

Shares of Lumentum stock opened at $921.56 on Friday. The firm has a market capitalization of $71.70 billion, a price-to-earnings ratio of 170.66 and a beta of 1.47. Lumentum Holdings Inc. has a fifty-two week low of $81.93 and a fifty-two week high of $1,085.68. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14. The stock has a 50 day moving average of $897.64 and a 200 day moving average of $629.72.

Lumentum (NASDAQ:LITE - Get Free Report) last issued 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 company 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%.The firm's revenue for the quarter was up 90.1% compared to the same quarter last year. During the same period in the prior year, the business posted $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, research analysts predict that Lumentum Holdings Inc. will post 6.49 earnings per share for the current year.

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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