Lumentum Holdings Inc. $LITE Stock Bought by Rakuten Investment Management Inc.

Key Points

• Rakuten Investment Management increased its Lumentum stake by 25.1% in the third quarter, adding 4,605 shares to hold 22,982 shares, valued at about $22.4 million in its latest SEC filing.
• Lumentum beat quarterly EPS estimates, reporting $4.57 per share, while revenue rose 136.5% year over year to $1.26 billion. The company also issued fiscal Q2 2027 guidance above analyst expectations.
• The proposed all-stock combination with Marvell could position the companies to benefit from AI data-center demand, but deal terms tied to Marvell’s share price and shareholder-fairness investigations have raised investor uncertainty.

Rakuten Investment Management Inc. raised its stake in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 25.1% in the third quarter, according to the company in its most recent disclosure with the SEC. The firm owned 22,982 shares of the technology company's stock after acquiring an additional 4,605 shares during the quarter. Rakuten Investment Management Inc.'s holdings in Lumentum were worth $22,373,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds also recently made changes to their positions in the company. Provenance Wealth Advisors LLC acquired a new stake in shares of Lumentum during the 3rd quarter worth about $141,000. TrinityBridge Ltd lifted its holdings in Lumentum by 35.8% during the 3rd quarter. TrinityBridge Ltd now owns 72 shares of the technology company's stock valued at $70,000 after purchasing an additional 19 shares during the last quarter. Associated Banc Corp acquired a new position in Lumentum in the third quarter valued at about $303,000. Putney Financial Group LLC bought a new stake in Lumentum during the third quarter worth about $28,000. Finally, Oregon Public Employees Retirement Fund grew its stake in Lumentum by 13.7% during the third quarter. Oregon Public Employees Retirement Fund now owns 10,891 shares of the technology company's stock worth $10,578,000 after buying an additional 1,310 shares during the last quarter. Institutional investors and hedge funds own 94.05% of the company's stock.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum issued strong fiscal Q2 2027 guidance: EPS of $5.90–$6.20 versus the $4.98 consensus and revenue of about $1.6 billion versus $1.5 billion expected. Its latest quarter also beat EPS estimates, with revenue up 136.5% year over year. Lumentum beats quarterly earnings and revenue estimates
• Positive Sentiment: The proposed combination with Marvell is intended to unite Lumentum’s optical components with Marvell’s custom chips and networking products, positioning the companies to benefit from rising AI data-center connectivity demand. Lumentum transaction details
• Neutral Sentiment: Some analysts still see potential upside, though their targets have been cut sharply: Susquehanna lowered its target to $950 and Rosenblatt to $900, while retaining positive or buy ratings. Susquehanna analyst rating
• Negative Sentiment: The $115 billion all-stock deal gives Lumentum holders 4.5 Marvell shares per share of Lumentum, so the offer’s value moves with Marvell’s stock. Deal skepticism and declines in both companies’ market values have fueled concerns about dilution, the transaction price and limited near-term upside. Merger doubts and market value losses
• Negative Sentiment: Shareholder law firms are investigating whether the sale is fair, while TD Cowen cut its target to $685 and B. Riley downgraded Lumentum to neutral with a lower $770 target. These developments add to investor uncertainty around the deal. Shareholder investigation announcement

Lumentum Stock Down 0.6%

Shares of NASDAQ:LITE opened at $680.16 on Wednesday. Lumentum Holdings Inc. has a 12 month low of $184.20 and a 12 month high of $1,143.00. The company's 50-day moving average price is $916.26 and its two-hundred day moving average price is $798.35. The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01. The firm has a market cap of $61.61 billion, a P/E ratio of -8.64 and a beta of 1.64.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its earnings results on Monday, November 2nd. The technology company reported $4.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.22 by $0.35. Lumentum had a negative net margin of 175.82% and a positive return on equity of 33.33%. The company had revenue of $1.26 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same period in the prior year, the business earned $1.10 earnings per share. Lumentum's quarterly revenue was up 136.5% on a year-over-year basis. As a group, research analysts forecast that Lumentum Holdings Inc. will post 19.79 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on LITE. Rosenblatt Securities dropped their price objective on shares of Lumentum from $1,300.00 to $900.00 and set a "buy" rating for the company in a report on Tuesday. Deutsche Bank Aktiengesellschaft began coverage on Lumentum in a report on Monday, August 31st. They issued a "buy" rating and a $1,200.00 target price on the stock. JPMorgan Chase & Co. increased their price target on Lumentum from $1,165.00 to $1,280.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 12th. Mizuho set a $1,132.00 price target on Lumentum in a report on Monday. Finally, Citigroup raised their price target on Lumentum from $1,200.00 to $1,400.00 and gave the company a "buy" rating in a report on Monday, September 28th. Two analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Lumentum presently has an average rating of "Moderate Buy" and an average price target of $1,046.54.

Insider Transactions at Lumentum

In other Lumentum news, insider Yuen Wupen sold 1,500 shares of the stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $827.82, for a total value of $1,241,730.00. Following the transaction, the insider directly owned 100,434 shares in the company, valued at approximately $83,141,273.88. This trade represents a 1.47% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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, CEO Michael E. Hurlston sold 548 shares of Lumentum stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $958.66, for a total value of $525,345.68. Following the completion of the sale, the chief executive officer directly owned 186,951 shares of the company's stock, valued at $179,222,445.66. This trade represents a 0.29% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 94,496 shares of company stock worth $85,978,498 over the last ninety days. 0.28% of the stock is currently owned by insiders.

Lumentum 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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