Lumentum Holdings Inc. $LITE Shares Newly Bought by VMS Asset Management Limited

Key Points

• VMS Asset Management purchased 9,137 Lumentum shares worth approximately $8.9 million, making Lumentum its eighth-largest holding at 3.5% of the portfolio. Institutional investors collectively own 94.05% of Lumentum.
• Analysts remain broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $1,078.75; however, recent commentary includes a downgrade to “Hold” and concerns about AI data-center funding sustainability.
• Lumentum reported strong operating momentum, including 109.3% year-over-year revenue growth and quarterly EPS of $3.23 versus the $2.97 estimate. Shares opened at $896.33, well below the 52-week high of $1,143.00, while CFO Wajid Ali sold $25.7 million of stock under a pre-arranged trading plan.

VMS Asset Management Limited bought a new position in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 9,137 shares of the technology company's stock, valued at approximately $8,874,000. Lumentum comprises approximately 3.5% of VMS Asset Management Limited's portfolio, making the stock its 8th biggest holding.

A number of other hedge funds and other institutional investors have also modified their holdings of the business. Jupiter Topco LLC acquired a new stake in Lumentum during the 2nd quarter valued at approximately $1,621,396,000. Amundi increased its holdings in Lumentum by 188.7% during the 2nd quarter. Amundi now owns 658,427 shares of the technology company's stock worth $564,970,000 after purchasing an additional 430,355 shares during the last quarter. WT Asset Management Ltd acquired a new position in shares of Lumentum in the 2nd quarter valued at approximately $494,688,000. Janus Henderson Group PLC raised 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 valued at $398,590,000 after purchasing an additional 351,676 shares in the last quarter. Finally, Legal & General Group Plc acquired a new position in shares of Lumentum in the 2nd quarter valued at approximately $376,539,000. 94.05% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on LITE. Citigroup raised their price target on shares of Lumentum from $1,200.00 to $1,400.00 and gave the stock a "buy" rating in a research report on Monday, September 28th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $1,300.00 price target on shares of Lumentum in a report on Monday, October 5th. Evercore began coverage on shares of Lumentum in a report on Monday, August 31st. They issued an "outperform" rating and a $1,100.00 price target on the stock. Needham & Company LLC reissued a "buy" rating and set a $1,040.00 price objective on shares of Lumentum in a report on Wednesday, August 12th. Finally, Raymond James Financial reissued an "outperform" rating and issued a $1,036.00 target price on shares of Lumentum in a research report on Wednesday, August 12th. Sixteen analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Lumentum currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,078.75.

Key Stories Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Higher analyst price target: Stifel raised its price target on Lumentum from $1,100 to $1,232, implying substantial upside and reflecting confidence in the company’s AI-related optical demand. Stifel raised target for Lumentum
• Positive Sentiment: Strong AI positioning and backlog: Reports highlight Lumentum’s optical components for AI data centers, a PCIe-over-optics demonstration with Astera Labs and Corning, and management’s statement that demand is largely booked through 2029. Recent earnings also showed revenue more than doubling year over year, with EPS exceeding estimates. Lumentum AI optics commitments
• Positive Sentiment: Long-term investor support: Commentary continues to identify Lumentum as a leading photonics and AI-infrastructure supplier, while some analysts describe the recent weakness as a potential buying opportunity. Three AI stocks to buy on the pullback
• Neutral Sentiment: Mixed analyst views: Although Stifel increased its target, Zacks Research downgraded Lumentum from “Strong Buy” to “Hold,” creating conflicting signals about near-term valuation and momentum. Zacks downgrades Lumentum to Hold
• Negative Sentiment: Sector-wide AI funding concerns: Lumentum fell alongside Applied Optoelectronics and Coherent as investors questioned how AI data-center projects will be financed and whether current spending levels are sustainable. The concern is particularly important because Lumentum’s valuation has risen sharply this year. AI funding fears hit optical stocks

Insiders Place Their Bets

In other news, CFO Wajid Ali sold 24,542 shares of the firm's stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $1,048.50, for a total value of $25,732,287.00. Following the transaction, the chief financial officer directly owned 75,074 shares in the company, valued at approximately $78,715,089. This trade represents a 24.64% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 307 shares of Lumentum stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $945.00, for a total transaction of $290,115.00. Following the completion of the transaction, the insider directly owned 108,320 shares of the company's stock, valued at $102,362,400. This trade represents a 0.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 94,496 shares of company stock worth $85,978,498 over the last three months. 0.28% of the stock is owned by corporate insiders.

Lumentum Price Performance

Shares of LITE opened at $896.33 on Thursday. Lumentum Holdings Inc. has a 52 week low of $152.54 and a 52 week high of $1,143.00. The company has a current ratio of 1.68, a quick ratio of 1.40 and a debt-to-equity ratio of 0.01. The firm has a market cap of $81.19 billion, a price-to-earnings ratio of -10.90 and a beta of 1.53. The stock has a 50 day moving average of $932.17 and a 200-day moving average of $875.26.

Lumentum (NASDAQ:LITE - Get Free Report) last posted 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. The business had revenue of $1.01 billion for the quarter, compared to analyst estimates 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% compared to the same quarter last year. During the same period in the prior year, the company posted $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, analysts forecast that Lumentum Holdings Inc. will post 19.79 EPS for the current year.

About Lumentum

Lumentum Holdings Inc is a photonics and optical technology company that develops and manufactures products used to transmit, process and manage light. Its solutions support communications networks, data centers, cloud computing infrastructure, industrial applications, and other technology markets that rely on high-speed optical connectivity and precision lasers.

The company's product portfolio includes optical components and modules for telecommunications and networking, lasers and laser systems, optical amplifiers, wavelength-management products, and photonic subsystems.

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