Lumentum Holdings Inc. $LITE Stock: Brookstone Capital Management Grows Holdings

Key Points

• Brookstone Capital Management increased its Lumentum stake by 191.9% in the third quarter, while other institutional investors also added shares. Institutions now own 94.05% of Lumentum’s stock.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $1,080.83, although ratings range from “Sell” to “Outperform.”
• Lumentum’s latest results exceeded expectations, with revenue rising 109.3% year over year to $1.01 billion and EPS of $3.23; however, the stock has recently declined amid a broader AI-optics selloff and insider selling, including a $25.7 million CFO transaction.

Brookstone Capital Management increased its stake in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 191.9% during the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 2,391 shares of the technology company's stock after acquiring an additional 1,572 shares during the quarter. Brookstone Capital Management's holdings in Lumentum were worth $2,323,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also bought and sold shares of the stock. Adams Diversified Equity Fund Inc. boosted its position in shares of Lumentum by 73.7% during the 3rd quarter. Adams Diversified Equity Fund Inc. now owns 9,900 shares of the technology company's stock worth $9,615,000 after purchasing an additional 4,200 shares in the last quarter. AMF Tjanstepension AB acquired a new stake in shares of Lumentum in the 3rd quarter valued at about $123,258,000. E. Ohman J or Asset Management AB grew its stake in shares of Lumentum by 45.1% in the 3rd quarter. E. Ohman J or Asset Management AB now owns 36,363 shares of the technology company's stock valued at $35,318,000 after buying an additional 11,302 shares during the period. SBI Securities Co. Ltd. increased its position in Lumentum by 129.5% in the 3rd quarter. SBI Securities Co. Ltd. now owns 15,500 shares of the technology company's stock valued at $15,055,000 after buying an additional 8,746 shares in the last quarter. Finally, Woodward Diversified Capital LLC bought a new stake in Lumentum in the 3rd quarter valued at about $310,000. 94.05% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

LITE has been the topic of a number of research reports. Weiss Ratings downgraded Lumentum from a "hold (c-)" rating to a "sell (d-)" rating in a research note on Wednesday, August 19th. Morgan Stanley raised their price objective on Lumentum from $900.00 to $1,000.00 and gave the company an "equal weight" rating in a research note on Wednesday, August 12th. UBS Group set a $820.00 price objective on Lumentum in a research note on Wednesday, August 12th. Needham & Company LLC restated a "buy" rating and set a $1,040.00 price objective on shares of Lumentum in a report on Wednesday, August 12th. Finally, Evercore initiated coverage on Lumentum in a research report on Monday, August 31st. They set an "outperform" rating and a $1,100.00 target price on the stock. Sixteen equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $1,080.83.

More Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Jefferies reportedly raised its price target on Lumentum to $1,250, signaling continued confidence in the company’s AI-optics growth prospects. Lumentum stock rises pre-market; Jefferies lifts target to USD 1,250
• Positive Sentiment: Brown Advisory identified Lumentum as an opportunity within AI infrastructure, reflecting institutional support for the company’s exposure to optical components used in data centers. Management has also highlighted strong AI demand through early 2029. Brown Advisory Sees AI Infrastructure Opportunity in Lumentum Holdings Inc. (LITE)
• Neutral Sentiment: Investors are looking ahead to Lumentum’s fiscal first-quarter update on November 4. The company has guided revenue above the prior quarter, while its latest reported quarter exceeded analyst expectations for both earnings and revenue, creating a potentially important catalyst but also raising expectations.
• Negative Sentiment: Lumentum shares have fallen sharply over the past week as investors reduced exposure to AI-optics stocks following a hotter-than-expected September inflation report. Higher interest-rate concerns are weighing particularly heavily on high-growth technology valuations. Lumentum Holdings (LITE) Fell In The AI Optics Selloff, Is It Still Undervalued?
• Negative Sentiment: The broader technology selloff has spread across optical-networking peers, including Coherent and Applied Optoelectronics, suggesting the recent weakness is driven more by sector-wide positioning and valuation concerns than by a new company-specific setback. Optics Stocks Tumble as Tech Selloff Deepens Ahead of Earnings
• Negative Sentiment: Lumentum’s CFO reportedly sold approximately $25.7 million of stock ahead of earnings. Although insider selling does not necessarily indicate deteriorating fundamentals, the timing may add to investor caution. Lumentum Slips Off Its $1,143 Peak as CFO Sells $25.7 Million Ahead of Earnings

Insider Buying and Selling at Lumentum

In other Lumentum news, insider Yuen Wupen sold 1,500 shares of Lumentum stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $827.82, for a total transaction of $1,241,730.00. Following the completion of the transaction, the insider owned 100,434 shares in the company, valued at approximately $83,141,273.88. The trade was a 1.47% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible 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, CFO Wajid Ali sold 24,542 shares of the business's 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 directly owned 75,074 shares of the company's stock, valued at $78,715,089. This represents a 24.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 94,496 shares of company stock worth $85,978,498. 0.28% of the stock is currently owned by corporate insiders.

Lumentum Price Performance

Lumentum stock opened at $756.17 on Monday. The firm has a market capitalization of $68.49 billion, a price-to-earnings ratio of -9.20 and a beta of 1.53. The firm's fifty day moving average price is $924.34 and its two-hundred day moving average price is $878.49. Lumentum Holdings Inc. has a 1-year low of $173.73 and a 1-year high of $1,143.00. The company has a current ratio of 1.68, a quick ratio of 1.40 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its earnings results on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, topping the consensus estimate of $2.97 by $0.26. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The company had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $987.70 million. During the same period in the previous year, the firm posted $0.88 earnings per share. The firm's revenue for the quarter was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. On average, equities research analysts predict that Lumentum Holdings Inc. will post 19.79 earnings per share for the current fiscal year.

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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