Lumentum Holdings Inc. $LITE Shares Acquired by TD Waterhouse Canada Inc.

Key Points

• Institutional ownership increased: TD Waterhouse Canada raised its Lumentum stake by 150.4% in the second quarter to 27,429 shares valued at approximately $21.98 million. Overall, institutional investors and hedge funds own 94.05% of Lumentum.
• Analysts remain broadly bullish: Lumentum has a “Moderate Buy” consensus rating and an average price target of $1,053.83, despite mixed target revisions. The stock recently traded at $881.26, while its latest quarterly results beat expectations with $3.23 in EPS and $1.01 billion in revenue.
• AI-driven demand supports the outlook, but risks remain: Strong demand for optical components used in AI infrastructure and recent analyst coverage are positive catalysts, while elevated valuation and insider selling could weigh on investor sentiment.

TD Waterhouse Canada Inc. increased its holdings in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 150.4% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 27,429 shares of the technology company's stock after purchasing an additional 16,477 shares during the period. TD Waterhouse Canada Inc.'s holdings in Lumentum were worth $21,978,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also recently added to or reduced their stakes in LITE. Concurrent Investment Advisors LLC raised its position in Lumentum by 6.6% in the second quarter. Concurrent Investment Advisors LLC now owns 4,388 shares of the technology company's stock valued at $3,765,000 after purchasing an additional 270 shares during the period. NEOS Investment Management LLC boosted its position in shares of Lumentum by 416.9% in the second quarter. NEOS Investment Management LLC now owns 53,187 shares of the technology company's stock worth $45,638,000 after buying an additional 42,897 shares during the period. Power Wealth Management LLC boosted its position in shares of Lumentum by 51.0% in the second quarter. Power Wealth Management LLC now owns 515 shares of the technology company's stock worth $442,000 after buying an additional 174 shares during the period. AXQ Capital LP acquired a new stake in shares of Lumentum in the second quarter valued at about $5,371,000. Finally, Nykredit A S acquired a new stake in shares of Lumentum in the second quarter valued at about $72,186,000. 94.05% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several equities analysts recently commented on LITE shares. UBS Group set a $820.00 price target on Lumentum in a research report on Wednesday, August 12th. Zacks Research raised shares of Lumentum from a "hold" rating to a "strong-buy" rating in a research report on Thursday, August 20th. Raymond James Financial reiterated an "outperform" rating and set a $1,036.00 price objective on shares of Lumentum in a research note on Wednesday, August 12th. Bank of America reduced their target price on shares of Lumentum from $1,100.00 to $1,000.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 12th. Finally, TD Cowen upped their target price on shares of Lumentum from $800.00 to $820.00 and gave the company a "hold" rating in a research note on Wednesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Lumentum has an average rating of "Moderate Buy" and an average target price of $1,053.83.

Lumentum Price Performance

LITE stock opened at $881.26 on Friday. The stock's 50 day moving average is $814.62 and its two-hundred day moving average is $815.74. Lumentum Holdings Inc. has a 52-week low of $144.20 and a 52-week high of $1,085.68. The company has a market capitalization of $79.05 billion, a PE ratio of -10.72 and a beta of 1.53. The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01.

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

Insider Activity

In related news, SVP Jae Kim sold 12,000 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $852.58, for a total value of $10,230,960.00. Following the completion of the transaction, the senior vice president directly owned 37,804 shares of the company's stock, valued at $32,230,934.32. This represents a 24.09% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 500 shares of the company's stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $860.00, for a total transaction of $430,000.00. Following the completion of the sale, the insider directly owned 116,127 shares of the company's stock, valued at $99,869,220. The trade was a 0.43% 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. In the last quarter, insiders have sold 65,147 shares of company stock valued at $55,812,856. 0.43% of the stock is owned by company insiders.

Key Headlines 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.

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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