Lumentum Holdings Inc. $LITE Shares Sold by CloudAlpha Capital Management Limited Hong Kong

Key Points

• CloudAlpha Capital Management cut its Lumentum stake by 49.3% in the fourth quarter, though the fund still held 197,781 shares valued at about $72.9 million, making Lumentum its sixth-largest holding.
• Wall Street remains broadly bullish on Lumentum: the stock has a consensus “Moderate Buy” rating, with 13 Buy ratings and an average price target of $1,012.43 after several firms raised targets.
• Recent fundamentals and insider activity were mixed: Lumentum beat earnings estimates with $2.37 EPS and 90.1% revenue growth year over year, but multiple insiders, including the CFO, sold shares under pre-arranged trading plans.

CloudAlpha Capital Management Limited Hong Kong trimmed its position in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 49.3% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 197,781 shares of the technology company's stock after selling 192,565 shares during the quarter. Lumentum accounts for approximately 3.4% of CloudAlpha Capital Management Limited Hong Kong's portfolio, making the stock its 6th largest holding. CloudAlpha Capital Management Limited Hong Kong owned about 0.28% of Lumentum worth $72,900,000 at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. Allworth Financial LP lifted its holdings in shares of Lumentum by 6.4% in the 3rd quarter. Allworth Financial LP now owns 784 shares of the technology company's stock valued at $128,000 after buying an additional 47 shares during the period. Oregon Public Employees Retirement Fund grew its holdings in Lumentum by 0.4% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 14,130 shares of the technology company's stock worth $5,208,000 after acquiring an additional 60 shares during the period. Northwestern Mutual Investment Management Company LLC grew its holdings in Lumentum by 0.4% during the third quarter. Northwestern Mutual Investment Management Company LLC now owns 15,559 shares of the technology company's stock worth $2,532,000 after acquiring an additional 64 shares during the period. MassMutual Private Wealth & Trust FSB raised its position in Lumentum by 58.9% in the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 205 shares of the technology company's stock worth $76,000 after acquiring an additional 76 shares in the last quarter. Finally, V Square Quantitative Management LLC purchased a new position in Lumentum in the fourth quarter worth $28,000. 94.05% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages have commented on LITE. Barclays boosted their target price on shares of Lumentum from $750.00 to $1,000.00 and gave the stock an "equal weight" rating in a research report on Wednesday, May 6th. Mizuho set a $1,100.00 price objective on shares of Lumentum in a research note on Wednesday, May 6th. Stifel Nicolaus boosted their price objective on shares of Lumentum from $800.00 to $1,100.00 and gave the stock a "buy" rating in a report on Tuesday, May 5th. Morgan Stanley upped their target price on shares of Lumentum from $710.00 to $900.00 and gave the stock an "equal weight" rating in a research report on Wednesday, May 6th. Finally, B. Riley Financial reaffirmed a "buy" rating on shares of Lumentum in a report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, Lumentum currently has an average rating of "Moderate Buy" and a consensus target price of $1,012.43.

Lumentum Stock Performance

Lumentum stock opened at $890.09 on Wednesday. Lumentum Holdings Inc. has a fifty-two week low of $71.04 and a fifty-two week high of $1,085.68. The company has a market capitalization of $69.25 billion, a price-to-earnings ratio of 164.83 and a beta of 1.53. The stock has a fifty day moving average of $821.27 and a two-hundred day moving average of $547.23. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, beating analysts' consensus estimates of $2.27 by $0.10. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The business had revenue of $808.40 million for the quarter, compared to analyst estimates of $810.21 million. During the same quarter last year, the company earned $0.57 earnings per share. The business's revenue for the quarter was up 90.1% compared to the same quarter last year. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, analysts anticipate that Lumentum Holdings Inc. will post 6.49 EPS for the current fiscal year.

Insider Activity at Lumentum

In other news, CFO Wajid Ali sold 2,487 shares of Lumentum stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $2,372,473.65. Following the completion of the sale, the chief financial officer directly owned 60,951 shares in the company, valued at $58,144,206.45. The trade was a 3.92% decrease in their ownership of the stock. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Pamela Fletcher sold 1,578 shares of the company's stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $940.82, for a total transaction of $1,484,613.96. Following the transaction, the director directly owned 7,406 shares in the company, valued at $6,967,712.92. The trade was a 17.56% 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. Insiders sold 36,192 shares of company stock worth $33,367,059 over the last three months. Company insiders own 0.43% of the company's stock.

Key Headlines Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum was added to the Nasdaq-100, which can drive buying from index funds and ETFs and improve the stock’s visibility with institutional investors. Lumentum (LITE) Joins Nasdaq-100 Index
• Positive Sentiment: Broker-rating upgrades cited Lumentum as a stock worth watching, reinforcing the bullish view that demand tied to AI infrastructure remains a long-term tailwind. 3 Stocks Backed By Broker Rating Upgrades Worth Betting On
• Neutral Sentiment: Lumentum presented at JPMorgan’s Global Technology, Media and Communications Conference, but no major new financial guidance or surprises were highlighted in the article. Lumentum Holdings Inc. (LITE) Presents at J.P. Morgan Conference Transcript
• Neutral Sentiment: NVIDIA’s latest portfolio filing was discussed in relation to Lumentum, but the piece did not indicate a direct material change in Lumentum’s fundamentals. A Deep Dive Into NVIDIA’s Latest Portfolio Moves (LITE)
• Negative Sentiment: Shares of Lumentum and other AI optics names fell as investors took profits across the sector after a strong run. Applied Optoelectronics Slumps 10%, Lumentum Dives 9%, Coherent Drops 6% as AI Optics Profit-Takers Strike
• Negative Sentiment: A prominent AI investor reportedly exited stakes in Lumentum, adding to pressure on sentiment around the stock. Lumentum, Coherent Drop After Prominent AI Investor Sells Stakes
• Negative Sentiment: Three insiders, including the CFO, SVP, and another executive, sold shares under pre-arranged 10b5-1 plans to cover tax withholding tied to equity vesting, which can weigh on short-term sentiment even if the sales were routine. SEC filing for Wajid Ali sale

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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