Lumentum Holdings Inc. $LITE Stake Boosted by Commonwealth Equity Services LLC

Key Points

• Commonwealth Equity Services increased its Lumentum stake 223.4% in the third quarter, ending with 22,490 shares valued at about $21.8 million. Institutional investors collectively own 94.05% of the company.
• Lumentum reported quarterly EPS of $4.57, beating estimates of $4.22, while revenue of $1.26 billion matched expectations and rose 136.5% year over year.
• Analysts’ consensus rating is “Moderate Buy,” with an average price target of $1,081.61. Company insiders sold nearly 94,500 shares worth about $86 million over the past 90 days.

Commonwealth Equity Services LLC lifted its stake in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 223.4% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 22,490 shares of the technology company's stock after acquiring an additional 15,536 shares during the quarter. Commonwealth Equity Services LLC's holdings in Lumentum were worth $21,844,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also modified their holdings of the company. TFB Advisors LLC increased its holdings in Lumentum by 5.6% in the third quarter. TFB Advisors LLC now owns 607 shares of the technology company's stock worth $590,000 after buying an additional 32 shares during the last quarter. Kestra Private Wealth Services LLC raised its position in Lumentum by 231.8% during the third quarter. Kestra Private Wealth Services LLC now owns 4,244 shares of the technology company's stock valued at $4,122,000 after acquiring an additional 2,965 shares in the last quarter. Chicago Partners Investment Group LLC raised its position in Lumentum by 12.1% during the third quarter. Chicago Partners Investment Group LLC now owns 1,525 shares of the technology company's stock valued at $1,153,000 after acquiring an additional 165 shares in the last quarter. Caldwell Trust Co bought a new position in Lumentum during the third quarter valued at approximately $64,000. Finally, Rakuten Investment Management Inc. lifted its stake in Lumentum by 25.1% in the third quarter. Rakuten Investment Management Inc. now owns 22,982 shares of the technology company's stock valued at $22,373,000 after acquiring an additional 4,605 shares during the last quarter. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

Lumentum Stock Performance

Shares of LITE opened at $596.16 on Tuesday. Lumentum Holdings Inc. has a one year low of $215.35 and a one year high of $1,143.00. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.61 and a quick ratio of 1.40. The company has a market capitalization of $54.07 billion, a PE ratio of -7.57 and a beta of 1.64. The company's fifty day moving average price is $888.15 and its 200 day moving average price is $802.77.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its earnings results on Monday, November 2nd. The technology company reported $4.57 earnings per share for the quarter, beating the consensus estimate of $4.22 by $0.35. The firm had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.26 billion. Lumentum had a positive return on equity of 28.85% and a negative net margin of 175.82%. The firm's revenue for the quarter was up 136.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.10 EPS. As a group, analysts expect that Lumentum Holdings Inc. will post 19.93 earnings per share for the current year.

Insider Buying and Selling at Lumentum

In other Lumentum news, insider Yuen Wupen sold 307 shares of the 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 transaction, the insider directly owned 108,320 shares in the company, valued at $102,362,400. This represents a 0.28% decrease in their ownership of the stock. The transaction was disclosed in a legal 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, CFO Wajid Ali sold 24,542 shares of the stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $1,048.50, for a total value of $25,732,287.00. Following the sale, the chief financial officer owned 75,074 shares in the company, valued at approximately $78,715,089. This trade represents a 24.64% 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. In the last ninety days, insiders sold 94,496 shares of company stock worth $85,978,498. 0.28% of the stock is owned by insiders.

Analysts Set New Price Targets

Several analysts have commented on the stock. Susquehanna decreased their target price on shares of Lumentum from $1,100.00 to $950.00 and set a "positive" rating for the company in a research report on Tuesday, November 3rd. Jefferies Financial Group raised their price target on shares of Lumentum from $1,200.00 to $1,250.00 and gave the company a "buy" rating in a report on Tuesday, October 20th. Sanford C. Bernstein assumed coverage on shares of Lumentum in a research note on Wednesday, September 30th. They issued an "outperform" rating and a $1,220.00 price objective for the company. Morgan Stanley lifted their price objective on shares of Lumentum from $900.00 to $1,000.00 and gave the company an "equal weight" rating in a research note on Wednesday, August 12th. Finally, Citigroup upped their price objective on shares of Lumentum from $1,200.00 to $1,400.00 and gave the stock a "buy" rating in a report on Monday, September 28th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $1,081.61.

Lumentum Company Profile

Lumentum Holdings Inc develops and manufactures optical and photonic products used in communications networks and industrial applications. Its offerings include optical components, modules and lasers that help transmit and process data across telecommunications and data center networks.

The company also supplies lasers and related technologies for industrial uses, including precision manufacturing and semiconductor production. Its products serve customers in markets around the world.

Lumentum became an independent public company in 2015 through a spin-off from JDSU, now Viavi Solutions.

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