Lumentum Holdings Inc. $LITE Position Lowered by Capital World Investors

Key Points

• Capital World Investors cut its Lumentum stake by 10.9% in the fourth quarter, selling 440,774 shares and leaving it with about 5.07% ownership valued at roughly $1.33 billion.
• Lumentum’s latest quarter beat earnings expectations, posting $2.37 EPS versus $2.27 expected, while revenue rose 90.1% year over year to $808.4 million.
• Wall Street remains bullish overall, with several firms raising price targets and the stock holding an average “Moderate Buy” rating and $1,021.95 average target price.

Capital World Investors decreased its stake in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 10.9% during the 4th quarter, according to its most recent Form 13F filing with the SEC. The fund owned 3,618,324 shares of the technology company's stock after selling 440,774 shares during the period. Capital World Investors owned about 5.07% of Lumentum worth $1,333,678,000 as of its most recent filing with the SEC.

Other large investors have also modified their holdings of the company. EverSource Wealth Advisors LLC lifted its position in shares of Lumentum by 363.9% during 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 last quarter. V Square Quantitative Management LLC bought a new position in shares of Lumentum during the fourth quarter worth about $28,000. Danske Bank A S bought a new position in shares of Lumentum during the third quarter worth about $33,000. Harbour Investments Inc. lifted its position in shares of Lumentum by 675.0% during the fourth quarter. Harbour Investments Inc. now owns 93 shares of the technology company's stock worth $34,000 after purchasing an additional 81 shares during the last quarter. Finally, Chesapeake Asset Management LLC bought a new position in shares of Lumentum during the fourth quarter worth about $37,000. Institutional investors own 94.05% of the company's stock.

Lumentum Stock Performance

LITE opened at $863.66 on Monday. The business's 50 day moving average is $880.29 and its 200-day moving average is $610.37. The stock has a market cap of $67.19 billion, a PE ratio of 159.94 and a beta of 1.47. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01. Lumentum Holdings Inc. has a twelve month low of $80.39 and a twelve month high of $1,085.68.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, beating analysts' consensus estimates of $2.27 by $0.10. The company had revenue of $808.40 million for the quarter, compared to analysts' expectations of $810.21 million. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The business's revenue for the quarter was up 90.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, analysts predict that Lumentum Holdings Inc. will post 6.49 earnings per share for the current year.

Analyst Ratings Changes

Several brokerages have recently commented on LITE. Needham & Company LLC increased their price target on shares of Lumentum from $880.00 to $1,040.00 and gave the stock a "buy" rating in a research report on Tuesday, April 21st. Northland Securities raised their target price on shares of Lumentum from $1,000.00 to $1,200.00 and gave the stock an "outperform" rating in a report on Wednesday, June 3rd. TD Cowen raised their target price on shares of Lumentum from $875.00 to $995.00 and gave the stock a "hold" rating in a report on Wednesday, May 6th. Stifel Nicolaus raised their target price on shares of Lumentum from $800.00 to $1,100.00 and gave the stock a "buy" rating in a report on Tuesday, May 5th. Finally, Raymond James Financial reissued an "outperform" rating and issued a $1,014.00 target price 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 assigned a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $1,021.95.

Insider Activity at Lumentum

In related news, SVP Jae Kim sold 1,422 shares of the business's stock in a transaction that occurred on Monday, May 18th. The stock was 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. The trade was a 4.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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, CFO Wajid Ali sold 2,487 shares of the business's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $953.95, for a total value 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. Additional details regarding this sale are available in the official SEC disclosure. 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 90 days, insiders have sold 41,260 shares of company stock valued at $38,859,220. Company insiders own 0.43% of the company's stock.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Northland Securities raised its price target on Lumentum to $1,200 from $1,000 and kept an outperform rating, reinforcing the bullish analyst view on the stock. Article Title
• Positive Sentiment: Lumentum announced a $650.4 million private exchange of convertible notes, which may reduce financing overhang and improve balance-sheet flexibility. Article Title
• Positive Sentiment: Analyst sentiment remains favorable overall, with Lumentum holding an average rating of “Moderate Buy” and multiple firms maintaining positive price targets. Article Title
• Positive Sentiment: Investor enthusiasm continues around Lumentum’s role in AI optical interconnects, a narrative that has supported the stock’s longer-term move. Article Title
• Neutral Sentiment: Director Isaac Hosojiro Harris sold 1,416 shares in a pre-arranged 10b5-1 plan; while routine, insider selling can still make some investors cautious. Article Title
• Neutral Sentiment: Articles asking why LITE has been softer since its last earnings report mainly point to post-earnings digestion and valuation, rather than a new fundamental problem. Article Title

About Lumentum

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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