Lumentum Holdings Inc. $LITE Shares Acquired by FirstWave Capital Management LLC

Key Points

• FirstWave Capital Management nearly doubled its Lumentum stake in the second quarter, adding 1,326 shares for a total of 2,737 shares valued at approximately $2.35 million. Institutional investors and hedge funds collectively own 94.05% of Lumentum.
• Lumentum reported stronger-than-expected quarterly results, with $3.23 in EPS and $1.01 billion in revenue, up 109.3% year over year. The company issued first-quarter fiscal 2027 EPS guidance of $4.05–$4.35, supported by demand for AI-related optical infrastructure.
• Shares opened at $881.26, while analyst sentiment remained broadly positive with a “Moderate Buy” consensus and a $1,053.83 average price target. However, insiders sold roughly $55.8 million of stock in the last quarter, and some analysts flagged elevated valuation risk.

FirstWave Capital Management LLC increased its holdings in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 94.0% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 2,737 shares of the technology company's stock after acquiring an additional 1,326 shares during the period. Lumentum makes up approximately 1.0% of FirstWave Capital Management LLC's portfolio, making the stock its 29th biggest holding. FirstWave Capital Management LLC's holdings in Lumentum were worth $2,349,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently modified their holdings of the stock. Hilton Head Capital Partners LLC purchased a new stake in shares of Lumentum during the first quarter worth about $25,000. Sachetta LLC lifted its stake in shares of Lumentum by 118.8% during the first quarter. Sachetta LLC now owns 35 shares of the technology company's stock worth $25,000 after purchasing an additional 19 shares in the last quarter. Meeder Asset Management Inc. acquired a new stake in shares of Lumentum during the second quarter valued at about $40,000. Keating Financial Advisory Services Inc. bought a new position in Lumentum during the 2nd quarter valued at $41,000. Finally, Fiduciary Financial Advisors acquired a new stake in shares of Lumentum during the 2nd quarter valued at approximately $42,000. 94.05% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at Lumentum

In related news, insider Vincent Retort sold 38,663 shares of the stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $852.59, for a total transaction of $32,963,687.17. Following the transaction, the insider directly owned 78,440 shares of the company's stock, valued at $66,877,159.60. This represents a 33.02% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Jae Kim sold 12,000 shares of the stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $852.58, for a total transaction of $10,230,960.00. Following the transaction, the senior vice president directly owned 37,804 shares in the company, valued at $32,230,934.32. This trade represents a 24.09% 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. In the last quarter, insiders have sold 65,147 shares of company stock valued at $55,812,856. Insiders own 0.43% of the company's stock.

Lumentum Price Performance

Shares of NASDAQ LITE opened at $881.26 on Friday. Lumentum Holdings Inc. has a fifty-two week low of $144.20 and a fifty-two week high of $1,085.68. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.68 and a quick ratio of 1.40. The business has a 50-day moving average of $814.62 and a 200-day moving average of $815.74. The stock has a market capitalization of $79.05 billion, a price-to-earnings ratio of -10.72 and a beta of 1.53.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.97 by $0.26. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%.The business had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $987.70 million. During the same quarter last year, the firm posted $0.88 EPS. The company's quarterly revenue was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, sell-side analysts predict that Lumentum Holdings Inc. will post 19.78 earnings per share for the current fiscal year.

Key Stories Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Optical-photonics rally: Lumentum gained alongside Coherent and other optical-networking stocks as investors focused on rising demand for lasers and optical components used to connect high-performance AI chips. Optical-photonics stocks article
• Positive Sentiment: Favorable analyst coverage: Deutsche Bank initiated coverage with a Buy rating, while Evercore also began research coverage. New institutional coverage can improve visibility and support investor interest in LITE. Deutsche Bank coverage article Evercore coverage article
• Positive Sentiment: AI infrastructure fundamentals remain strong: Recent results showed approximately $1.01 billion in quarterly revenue, adjusted EPS of $3.23, and guidance for $1.225 billion–$1.275 billion in revenue. Nvidia’s investment and purchase commitment for Lumentum’s laser components further reinforce the AI-demand thesis.
• Neutral Sentiment: Portfolio concentration warning: One analysis said LITE’s roughly 680% advance can make it an outsized portfolio position. The article remained positive on the business but advised investors to reassess position sizing after the substantial rally. Lumentum portfolio concentration article
• Negative Sentiment: Valuation concerns: A Seeking Alpha analysis argued that Lumentum has become too expensive following its dramatic run, creating a potential headwind if growth or AI infrastructure spending fails to exceed already-high expectations. Lumentum valuation article
• Negative Sentiment: Insider selling: Yuen Wupen sold two separate blocks of 500 shares for a combined $862,245. Both trades were conducted under a pre-arranged Rule 10b5-1 plan and represented only 0.43% of the insider’s holdings, making the signal relatively limited.

Analysts Set New Price Targets

A number of research firms have recently weighed in on LITE. UBS Group set a $820.00 price target on Lumentum in a report on Wednesday, August 12th. Bank of America decreased their price target on shares of Lumentum from $1,100.00 to $1,000.00 and set a "neutral" rating for the company in a report on Wednesday, August 12th. Mizuho upped their price target on Lumentum from $1,100.00 to $1,140.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 12th. Morgan Stanley raised their target price on Lumentum from $900.00 to $1,000.00 and gave the company an "equal weight" rating in a report on Wednesday, August 12th. Finally, Weiss Ratings lowered Lumentum from a "hold (c-)" rating to a "sell (d-)" rating in a report on Wednesday, August 19th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Lumentum presently has an average rating of "Moderate Buy" and a consensus price target of $1,053.83.

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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