Lumentum Holdings Inc. $LITE Position Lowered by Leeward Investments LLC MA

Key Points

• Leeward Investments cut its Lumentum stake by 56.9% in the third quarter, selling 10,768 shares and retaining 8,163 shares valued at approximately $7.9 million. Institutional investors collectively own 94.05% of the company.
• Analyst sentiment remains generally positive: 16 analysts rate Lumentum a Buy, six recommend Hold and one recommends Sell, producing a “Moderate Buy” consensus and an average price target of $1,080.83.
• Lumentum recently exceeded quarterly earnings and revenue expectations, with EPS of $3.23 and revenue of $1.01 billion, while revenue grew 109.3% year over year. However, company insiders sold roughly $86 million in stock over the past 90 days.

Leeward Investments LLC MA lessened its position in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 56.9% in the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 8,163 shares of the technology company's stock after selling 10,768 shares during the quarter. Leeward Investments LLC MA's holdings in Lumentum were worth $7,929,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Jupiter Topco LLC bought a new position in Lumentum in the second quarter worth $1,621,396,000. Amundi boosted its holdings in shares of Lumentum by 188.7% during the 2nd quarter. Amundi now owns 658,427 shares of the technology company's stock valued at $564,970,000 after buying an additional 430,355 shares in the last quarter. WT Asset Management Ltd bought a new stake in shares of Lumentum during the 2nd quarter valued at $494,688,000. Janus Henderson Group PLC grew its position in shares of Lumentum by 163.2% in the 1st quarter. Janus Henderson Group PLC now owns 567,182 shares of the technology company's stock worth $398,590,000 after buying an additional 351,676 shares during the period. Finally, Legal & General Group Plc purchased a new stake in shares of Lumentum in the 2nd quarter worth about $376,539,000. 94.05% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of brokerages have weighed in on LITE. Wolfe Research restated an "outperform" rating on shares of Lumentum in a report on Friday, August 21st. Zacks Research cut Lumentum from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 12th. Jefferies Financial Group upped their price target on Lumentum from $1,200.00 to $1,250.00 and gave the stock a "buy" rating in a research note on Tuesday, October 20th. Sanford C. Bernstein initiated coverage on Lumentum in a research report on Wednesday, September 30th. They set an "outperform" rating and a $1,220.00 price objective for the company. Finally, Bank of America lowered their price objective on Lumentum from $1,100.00 to $1,000.00 and set a "neutral" rating for the company in a research note on Wednesday, August 12th. Sixteen research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Lumentum currently has an average rating of "Moderate Buy" and a consensus target price of $1,080.83.

Lumentum Stock Up 8.2%

Shares of Lumentum stock opened at $818.10 on Tuesday. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.40 and a current ratio of 1.68. The stock has a market capitalization of $74.11 billion, a PE ratio of -9.95 and a beta of 1.53. Lumentum Holdings Inc. has a 52-week low of $184.20 and a 52-week high of $1,143.00. The company has a 50-day simple moving average of $923.08 and a two-hundred day simple moving average of $784.46.

Lumentum (NASDAQ:LITE - Get Free Report) last issued its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.97 by $0.26. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The firm had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $987.70 million. During the same quarter in the prior year, the firm posted $0.88 earnings per share. The business's revenue was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. On average, analysts anticipate that Lumentum Holdings Inc. will post 19.79 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Vincent Retort sold 38,663 shares of the company's stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $852.59, for a total value of $32,963,687.17. Following the transaction, the insider directly owned 78,440 shares of the company's stock, valued at approximately $66,877,159.60. This represents a 33.02% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael Hurlston sold 548 shares of the company's stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $958.66, for a total value of $525,345.68. Following the completion of the transaction, the chief executive officer directly owned 186,951 shares in the company, valued at $179,222,445.66. This trade represents a 0.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 94,496 shares of company stock worth $85,978,498 over the last 90 days. 0.28% of the stock is currently owned by company insiders.

More Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: StoneX initiated coverage with a Buy rating and a $1,200 price target, citing Lumentum’s exposure to “critical scarcity points” in the optical networking supply chain. The call also lifted sentiment across related companies, including Applied Optoelectronics and Coherent. Lumentum Gains 3% as StoneX Starts at Buy With $1,200 Target
• Positive Sentiment: BNP Paribas raised its target for Lumentum to $1,425, adding another bullish analyst signal and reinforcing expectations for substantial upside tied to AI infrastructure spending. BNP Paribas Raises Target for Lumentum Stock to USD 1,425
• Positive Sentiment: Lumentum’s announced AI rack optics demonstration highlighted its efforts to address rapidly growing demand for high-speed data-center connectivity. Investors appear to view the technology as supporting the company’s position in AI-related compute infrastructure. Lumentum Announces AI Rack Optics Demonstration
• Neutral Sentiment: A market-data update reported zero shares sold short as of October 26, implying no measurable short-interest overhang. However, the figure conflicts with the description of a “significant increase” and may reflect a reporting error.
• Negative Sentiment: One analysis cautioned that Lumentum’s growth is constrained by indium phosphide fab capacity. Its longer-term earnings ambitions also depend heavily on scaling optical circuit switching, which may be less defensible than the company’s core laser products. Lumentum: Sold Out Is Not The Same As Scalable

Lumentum Profile

Lumentum Holdings Inc is a technology company that designs and manufactures optical and photonic products for communications networks, industrial applications, and consumer electronics. Its portfolio includes optical components, modules, and subsystems used in fiber-optic networks, data centers, cloud computing infrastructure, telecommunications equipment, and high-speed connectivity systems.

The company also develops laser products for applications such as industrial processing, sensing, three-dimensional imaging, and other specialized commercial and consumer uses.

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