Lumentum Holdings Inc. $LITE Shares Purchased by California State Teachers Retirement System

Key Points

• California State Teachers Retirement System dramatically increased its Lumentum stake by purchasing roughly 92.2 million additional shares in the second quarter. Institutional investors collectively own 94.05% of LITE, according to the filing data.
• Lumentum exceeded quarterly expectations with EPS of $3.23 versus the $2.97 consensus and revenue of approximately $1.01 billion, up 109.3% year over year. The company guided for fiscal Q1 2027 EPS of $4.05–$4.35.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $1,053.83, though insiders sold about $55.8 million of shares over the past 90 days and some analysts flagged valuation concerns.

California State Teachers Retirement System increased its stake in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 112,343.2% during the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 92,237,160 shares of the technology company's stock after buying an additional 92,155,130 shares during the quarter. California State Teachers Retirement System owned about 102.83% of Lumentum worth $79,145,018,000 at the end of the most recent reporting period.

Several other large investors also recently added to or reduced their stakes in LITE. Washington Trust Advisors Inc. acquired a new stake in shares of Lumentum in the 2nd quarter worth $61,000. Ameritas Advisory Services LLC acquired a new position in shares of Lumentum during the 2nd quarter valued at about $616,000. Wedmont Private Capital grew its holdings in shares of Lumentum by 16.2% in the second quarter. Wedmont Private Capital now owns 1,586 shares of the technology company's stock valued at $1,272,000 after purchasing an additional 221 shares during the period. HB Wealth Management LLC grew its holdings in shares of Lumentum by 16.8% in the second quarter. HB Wealth Management LLC now owns 2,527 shares of the technology company's stock valued at $2,168,000 after purchasing an additional 364 shares during the period. Finally, Saudi Central Bank increased its position in Lumentum by 91.0% during the second quarter. Saudi Central Bank now owns 4,998 shares of the technology company's stock worth $4,289,000 after purchasing an additional 2,381 shares during the last quarter. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other Lumentum news, insider Vincent Retort sold 38,663 shares of the stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $852.59, for a total value of $32,963,687.17. Following the sale, 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 sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Jae Kim sold 12,000 shares of the firm's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $852.58, for a total transaction of $10,230,960.00. Following the completion of the sale, the senior vice president owned 37,804 shares in the company, valued at $32,230,934.32. The trade was a 24.09% decrease in their ownership of the stock. 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. Insiders sold 65,147 shares of company stock worth $55,812,856 in the last ninety days. 0.43% of the stock is owned by insiders.

Lumentum Price Performance

Shares of NASDAQ LITE opened at $881.26 on Monday. The stock's 50-day moving average is $814.62 and its two-hundred day moving average is $817.52. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.68 and a quick ratio of 1.40. Lumentum Holdings Inc. has a 1-year low of $144.20 and a 1-year high of $1,085.68. The company has a market cap 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 data 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 analysts' expectations of $987.70 million. During the same quarter last year, the business posted $0.88 EPS. The business's quarterly revenue was up 109.3% compared to the same quarter last year. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Analysts forecast that Lumentum Holdings Inc. will post 19.78 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. Zacks Research raised shares of Lumentum from a "hold" rating to a "strong-buy" rating in a research note on Thursday, August 20th. Raymond James Financial restated an "outperform" rating and set a $1,036.00 price target on shares of Lumentum in a report on Wednesday, August 12th. Bank of America reduced their price target 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. Northland Securities increased their price objective on Lumentum from $1,000.00 to $1,200.00 and gave the stock an "outperform" rating in a research report on Wednesday, June 3rd. Finally, TD Cowen raised their target price on Lumentum from $800.00 to $820.00 and gave the stock a "hold" rating in a research note on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $1,053.83.

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.

Lumentum Company 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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