Lumentum Holdings Inc. $LITE Shares Sold by VIRGINIA RETIREMENT SYSTEMS ET Al

Key Points

• Virginia Retirement Systems reduced its Lumentum stake by 14.7% in the third quarter, selling 3,060 shares and retaining 17,740 shares valued at approximately $17.23 million. Institutional investors collectively own 94.05% of the company.
• Lumentum reported strong operating momentum, with quarterly revenue up 109.3% year over year to $1.01 billion and EPS of $3.23, exceeding analyst expectations. The company also issued Q1 2027 EPS guidance of $4.05–$4.35.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $1,080.83, although the stock recently traded at $840.70 and faces risks from valuation, potential Marvell acquisition uncertainty, and insider selling.

VIRGINIA RETIREMENT SYSTEMS ET Al cut its holdings in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 14.7% during the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 17,740 shares of the technology company's stock after selling 3,060 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al's holdings in Lumentum were worth $17,230,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of LITE. Financiere des Professionnels Fonds d investissement inc. acquired a new position in Lumentum during the first quarter worth $2,046,000. Styrax Capital LP raised its holdings in Lumentum by 3.6% in the 1st quarter. Styrax Capital LP now owns 140,000 shares of the technology company's stock valued at $98,386,000 after acquiring an additional 4,837 shares during the period. Whittier Trust Co. lifted its holdings in Lumentum by 21,806.5% during the 1st quarter. Whittier Trust Co. now owns 74,044 shares of the technology company's stock worth $57,183,000 after purchasing an additional 73,706 shares during the last quarter. Swiss National Bank boosted its position in shares of Lumentum by 47.2% in the first quarter. Swiss National Bank now owns 208,015 shares of the technology company's stock valued at $146,185,000 after acquiring an additional 66,700 shares during the period. Finally, Whittier Trust Co. of Nevada Inc. boosted its holdings in Lumentum by 335,933.3% in the 1st quarter. Whittier Trust Co. of Nevada Inc. now owns 30,243 shares of the technology company's stock valued at $23,356,000 after purchasing an additional 30,234 shares during the period. Institutional investors and hedge funds own 94.05% of the company's stock.

Lumentum Stock Down 8.6%

Shares of NASDAQ:LITE opened at $840.70 on Friday. Lumentum Holdings Inc. has a 52-week low of $184.20 and a 52-week high of $1,143.00. The business's 50 day simple moving average is $922.90 and its two-hundred day simple moving average is $795.00. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.40 and a current ratio of 1.68. The firm has a market cap of $76.15 billion, a P/E ratio of -10.23 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 EPS for the quarter, beating analysts' consensus estimates of $2.97 by $0.26. The business had revenue of $1.01 billion during the quarter, compared to analyst estimates of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. Lumentum's quarterly revenue was up 109.3% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, research analysts forecast that Lumentum Holdings Inc. will post 19.79 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of analysts have recently weighed in on LITE shares. Mizuho upped their target price on Lumentum from $1,100.00 to $1,140.00 and gave the company an "outperform" rating in a research report on Wednesday, August 12th. Stonex Financia upgraded shares of Lumentum to a "strong-buy" rating in a report on Monday, October 26th. UBS Group set a $820.00 price objective on shares of Lumentum in a report on Wednesday, August 12th. Morgan Stanley raised their target price on Lumentum from $900.00 to $1,000.00 and gave the stock an "equal weight" rating in a research report on Wednesday, August 12th. Finally, Jefferies Financial Group boosted their price target on shares of Lumentum from $1,200.00 to $1,250.00 and gave the stock a "buy" rating in a research report on Tuesday, October 20th. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $1,080.83.

More Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Marvell Technology reportedly remains in advanced discussions to acquire Lumentum, potentially valuing the optical-components company at roughly $83 billion. A transaction could provide takeover support for LITE and combine Lumentum’s photonics assets with Marvell’s AI data-center networking business. However, the talks remain unconfirmed. Marvell Is Said to Near Deal for Lumentum
• Positive Sentiment: Lumentum’s fundamental AI investment case remains strong. Recent results showed approximately $1.01 billion in quarterly revenue, up 109% year over year, and adjusted earnings of $3.23 per share. Management also projected current-quarter revenue of $1.225 billion to $1.275 billion, above Wall Street expectations. Record cloud-transceiver shipments and the rollout of 1.6T products are supporting demand. LITE’s Transceivers Gain From AI Infrastructure Demand
• Neutral Sentiment: Lumentum’s lasers and optical components are increasingly important as AI clusters outgrow copper-based connectivity. NVIDIA’s $2 billion investment and purchase commitment further validate the strategy, although the stock’s sharp multimonth rally has made portfolio concentration and valuation key considerations. Lumentum’s 680% Run Created a New Portfolio Problem
• Negative Sentiment: Investors are increasingly concerned that Big Tech earnings could signal slower or more disciplined hyperscaler capital spending, pressuring the entire AI-optics supply chain. Lumentum is also vulnerable to deal uncertainty: a large, potentially all-stock Marvell transaction could create dilution and integration risk, while failure to reach an agreement would remove a near-term takeover catalyst. Hyperscaler Spending Fears Hit AI Optics Stocks

Insider Buying and Selling at Lumentum

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

Lumentum Company Profile

Lumentum Holdings Inc is a technology company that designs and manufactures optical and photonic products for communications networks, industrial applications, and consumer electronics. Its portfolio includes optical components, modules, and subsystems used in fiber-optic networks, data centers, cloud computing infrastructure, telecommunications equipment, and high-speed connectivity systems.

The company also develops laser products for applications such as industrial processing, sensing, three-dimensional imaging, and other specialized commercial and consumer uses.

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