Legato Capital Management LLC Lowers Stock Position in Lumentum Holdings Inc. (NASDAQ:LITE)

Key Points

• Legato Capital Management LLC sold 6,615 shares of Lumentum Holdings Inc., reducing its stake by 46.7% to a total of 7,540 shares valued at approximately $470,000.
• Several hedge funds, including Rakuten Securities and Golden State Wealth Management, significantly increased their positions in Lumentum during the first quarter, indicating growing institutional interest.
• Analysts have a consensus rating of "Moderate Buy" for Lumentum, with target prices ranging from $73.00 to $125.00, reflecting positive market sentiment despite the firm's recent earnings performance.

Legato Capital Management LLC trimmed its stake in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 46.7% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 7,540 shares of the technology company's stock after selling 6,615 shares during the period. Legato Capital Management LLC's holdings in Lumentum were worth $470,000 as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. Quadrant Capital Group LLC boosted its position in shares of Lumentum by 27.2% during the 4th quarter. Quadrant Capital Group LLC now owns 766 shares of the technology company's stock valued at $64,000 after acquiring an additional 164 shares in the last quarter. Oregon Public Employees Retirement Fund boosted its position in Lumentum by 1.3% in the first quarter. Oregon Public Employees Retirement Fund now owns 14,130 shares of the technology company's stock valued at $881,000 after buying an additional 176 shares in the last quarter. Thrivent Financial for Lutherans boosted its holdings in shares of Lumentum by 1.3% in the 4th quarter. Thrivent Financial for Lutherans now owns 16,165 shares of the technology company's stock worth $1,357,000 after acquiring an additional 213 shares in the last quarter. California State Teachers Retirement System boosted its stake in Lumentum by 0.4% in the fourth quarter. California State Teachers Retirement System now owns 64,170 shares of the technology company's stock worth $5,387,000 after purchasing an additional 251 shares in the last quarter. Finally, Golden State Wealth Management LLC grew its holdings in Lumentum by 103.2% during the 1st quarter. Golden State Wealth Management LLC now owns 512 shares of the technology company's stock worth $32,000 after acquiring an additional 260 shares during the last quarter. 94.05% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research analysts have issued reports on the stock. Raymond James Financial upped their target price on shares of Lumentum from $80.00 to $90.00 and gave the company a "strong-buy" rating in a research report on Wednesday, June 4th. Barclays set a $75.00 price target on shares of Lumentum and gave the company an "overweight" rating in a research note on Wednesday, May 7th. Susquehanna boosted their price target on Lumentum from $95.00 to $125.00 and gave the stock a "positive" rating in a research report on Tuesday, July 22nd. Needham & Company LLC upped their price target on shares of Lumentum from $100.00 to $105.00 and gave the company a "buy" rating in a research note on Wednesday, June 11th. Finally, Northland Securities set a $80.00 target price on Lumentum in a report on Wednesday, May 7th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating, eleven have issued a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $87.73.

Insider Activity

In other news, Director Alan S. Lowe sold 20,000 shares of Lumentum stock in a transaction dated Thursday, June 26th. The shares were sold at an average price of $93.47, for a total value of $1,869,400.00. Following the completion of the transaction, the director owned 230,471 shares in the company, valued at $21,542,124.37. This trade represents a 7.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Wajid Ali sold 2,222 shares of the business's stock in a transaction that occurred on Wednesday, June 4th. The shares were sold at an average price of $83.58, for a total transaction of $185,714.76. Following the transaction, the chief financial officer directly owned 47,460 shares of the company's stock, valued at approximately $3,966,706.80. This represents a 4.47% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 67,049 shares of company stock worth $5,795,543. Company insiders own 0.19% of the company's stock.

Lumentum Stock Up 1.2%

Shares of Lumentum stock traded up $1.26 during trading on Tuesday, reaching $108.43. 1,130,922 shares of the company traded hands, compared to its average volume of 2,505,876. The company has a debt-to-equity ratio of 2.91, a current ratio of 4.72 and a quick ratio of 3.53. Lumentum Holdings Inc. has a 1-year low of $38.28 and a 1-year high of $112.10. The company has a 50 day moving average price of $88.66 and a 200-day moving average price of $76.47. The firm has a market capitalization of $7.52 billion, a PE ratio of -16.88 and a beta of 1.34.

Lumentum (NASDAQ:LITE - Get Free Report) last issued its earnings results on Tuesday, May 6th. The technology company reported $0.57 earnings per share for the quarter, topping analysts' consensus estimates of $0.50 by $0.07. Lumentum had a negative return on equity of 8.69% and a negative net margin of 29.87%. The company had revenue of $425.20 million for the quarter, compared to analyst estimates of $418.18 million. During the same period in the prior year, the firm earned $0.09 earnings per share. Lumentum's revenue for the quarter was up 16.0% on a year-over-year basis. As a group, equities research analysts expect that Lumentum Holdings Inc. will post 0.03 earnings per share for the current fiscal year.

About Lumentum

Lumentum Holdings Inc manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables.