Legato Capital Management LLC Sells 3,390 Shares of Lumentum Holdings Inc. $LITE

Key Points

• Legato Capital Management cut its Lumentum stake by 48% in the fourth quarter, selling 3,390 shares and leaving it with 3,670 shares valued at about $1.35 million.
• Lumentum’s fundamentals and outlook remain strong: the company recently beat EPS estimates, posted 90.1% year-over-year revenue growth, and guided Q4 2026 EPS at 2.85–3.05.
• Wall Street sentiment is broadly positive, with one Strong Buy, 13 Buy ratings, and a consensus target price of $1,012.43; several analysts also raised price targets sharply.

Legato Capital Management LLC reduced its position in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 48.0% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 3,670 shares of the technology company's stock after selling 3,390 shares during the quarter. Legato Capital Management LLC's holdings in Lumentum were worth $1,353,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also modified their holdings of LITE. EverSource Wealth Advisors LLC boosted its position in shares of Lumentum by 363.9% in the third quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company's stock worth $27,000 after purchasing an additional 131 shares during the period. V Square Quantitative Management LLC bought a new position in shares of Lumentum in the fourth quarter worth approximately $28,000. Danske Bank A S bought a new position in shares of Lumentum in the third quarter worth approximately $33,000. Chesapeake Asset Management LLC bought a new position in shares of Lumentum in the fourth quarter worth approximately $37,000. Finally, BOCHK Asset Management Ltd bought a new position in shares of Lumentum in the fourth quarter worth approximately $37,000. 94.05% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of research firms have weighed in on LITE. Zacks Research upgraded shares of Lumentum from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, May 13th. JPMorgan Chase & Co. upped their price target on shares of Lumentum from $950.00 to $1,130.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. UBS Group upped their price target on shares of Lumentum from $455.00 to $960.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 6th. Barclays upped their price target on shares of Lumentum from $750.00 to $1,000.00 and gave the stock an "equal weight" rating in a research report on Wednesday, May 6th. Finally, Bank of America upped their price target on shares of Lumentum to $520.00 and gave the stock a "neutral" rating in a research report on Wednesday, February 4th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $1,012.43.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Articles argue that Nvidia’s results reinforce the scarcity and importance of AI networking hardware, which could support continued demand for Lumentum’s optical components. Lumentum: Market Is Missing What Nvidia's Q1 Just Confirmed
• Positive Sentiment: Coverage says Lumentum’s AI connectivity portfolio is expanding and hyperscaler demand is driving record revenues and rapid growth in optical connectivity shipments. Lumentum's AI Connectivity Portfolio Expands: Is Growth Durable?
• Positive Sentiment: Analysts and market commentary describe Lumentum’s earnings as confirming an “AI scarcity advantage,” suggesting the company may be well positioned to benefit from tight supply and strong demand. Lumentum's Earnings Confirm AI Scarcity Advantage
• Positive Sentiment: Lumentum’s addition to the Nasdaq-100 is increasing visibility and could bring more institutional and ETF-related demand for the shares. Does Lumentum (LITE) Joining the Nasdaq-100 Recast Its AI Infrastructure Investment Narrative?
• Neutral Sentiment: REX Shares launched a 2x leveraged ETF tied to Lumentum, which may boost trading interest but does not change the company’s fundamentals. REX Shares Launches T-REX 2X ASTS (ASUP) & 2X LITE (LITU) ETFs
• Neutral Sentiment: Several insider sale filings were reported, but the trades were relatively small and do not appear to be a major driver of the stock move. Yuen Wupen Sells 3,210 Shares of Lumentum NASDAQ: LITE Stock

Lumentum Price Performance

LITE stock opened at $946.90 on Monday. Lumentum Holdings Inc. has a one year low of $71.04 and a one year high of $1,085.68. The company's fifty day moving average price is $837.17 and its 200-day moving average price is $562.57. 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 company has a market capitalization of $73.67 billion, a PE ratio of 175.35 and a beta of 1.53.

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 net margin of 17.61% and a return on equity of 24.81%. The firm had revenue of $808.40 million for the quarter, compared to the consensus estimate of $810.21 million. During the same quarter in the previous year, the firm earned $0.57 earnings per share. The company's quarterly revenue was up 90.1% compared to the same quarter last year. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, equities analysts anticipate that Lumentum Holdings Inc. will post 6.49 EPS for the current fiscal year.

Insider Activity at Lumentum

In related news, SVP Jae Kim sold 1,422 shares of the company's stock in a transaction 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 sale, the senior vice president owned 32,333 shares of the company's stock, valued at $30,844,065.35. This represents a 4.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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, CFO Wajid Ali sold 2,487 shares of the company's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $2,372,473.65. Following the sale, the chief financial officer directly owned 60,951 shares in the company, valued at approximately $58,144,206.45. The trade was a 3.92% 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. Insiders have sold 41,146 shares of company stock valued at $37,667,478 over the last quarter. 0.43% of the stock is currently owned by insiders.

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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