Lumentum Holdings Inc. $LITE Stock Holdings Increased by Wedmont Private Capital

Key Points

• Wedmont Private Capital nearly doubled its Lumentum stake in the third quarter, increasing holdings by 93.3% to 3,065 shares valued at approximately $3.2 million. Institutional investors collectively own 94.05% of the company.
• Lumentum is benefiting from strong AI data-center demand for optical networking products, with supply shortages potentially extending through 2028. Analysts generally remain bullish, giving the stock a “Moderate Buy” consensus rating and an average price target of $1,078.75.
• The company reported quarterly EPS of $3.23, exceeding estimates, while revenue rose 109.3% year over year to $1.01 billion. However, insiders sold nearly $86 million of stock over the past 90 days, and the shares remain exposed to valuation and execution risks after a sharp rally.

Wedmont Private Capital lifted its stake in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 93.3% during the 3rd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 3,065 shares of the technology company's stock after buying an additional 1,479 shares during the quarter. Wedmont Private Capital's holdings in Lumentum were worth $3,214,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also recently made changes to their positions in the company. Jupiter Topco LLC bought a new stake in Lumentum during the 2nd quarter worth approximately $1,621,396,000. Arrowstreet Capital Limited Partnership boosted its position in shares of Lumentum by 18.7% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company's stock worth $683,661,000 after purchasing an additional 291,591 shares during the period. Aspex Management HK Ltd bought a new position in shares of Lumentum in the fourth quarter worth approximately $251,363,000. Amundi increased its stake in shares of Lumentum by 188.7% in the second quarter. Amundi now owns 658,427 shares of the technology company's stock worth $564,970,000 after purchasing an additional 430,355 shares in the last quarter. Finally, WT Asset Management Ltd purchased a new stake in shares of Lumentum in the second quarter worth $494,688,000. 94.05% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: AI infrastructure demand is outpacing Lumentum’s manufacturing capacity, with shortages for certain optical products potentially lasting through 2028. The supply-demand imbalance supports strong order visibility, pricing power and elevated margins. Lumentum Can't Keep Up With AI Demand—and Its Stock Is Surging
• Positive Sentiment: Management’s outlook suggests a multiyear growth opportunity as AI data centers shift from copper to high-speed optical networking. One analysis said Lumentum may be unable to meet about 70% of demand for some products through next year and highlighted management’s target of $40 in adjusted EPS by fiscal 2028. Lumentum: At The Point Of A Potential Upside Breakout
• Positive Sentiment: Analyst and market commentary characterized LITE as having a multiyear runway for growth, while Zacks added the stock to its Rank #1 Strong Buy list. The demand signal also lifted sentiment toward other optical-networking companies. Evercore ISI: LITE has a multiyear runway for growth ahead
• Neutral Sentiment: The bullish demand outlook follows a period of substantial gains and elevated investor expectations. Lumentum’s opportunity depends on expanding production successfully and converting its backlog into cash flow and earnings.
• Negative Sentiment: Optical stocks experienced broad profit-taking and sector-wide selling recently, underscoring valuation and execution risks after their sharp advances. Investors may also remain cautious about whether current AI demand can justify LITE’s high valuation. Optics Stocks Tumble as Profit Taking Cuts Into Big Yearly Gains

Insider Activity

In other Lumentum news, insider Yuen Wupen sold 307 shares of the firm's stock in a transaction that occurred 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 owned 108,320 shares in the company, valued at $102,362,400. This trade represents a 0.28% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available 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 Lumentum 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 completion of the sale, the chief financial officer directly owned 75,074 shares in the company, valued at approximately $78,715,089. The trade was a 24.64% decrease in their position. 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. Insiders sold 94,496 shares of company stock worth $85,978,498 over the last ninety days. Insiders own 0.43% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on LITE shares. Zacks Research upgraded shares of Lumentum from a "hold" rating to a "strong-buy" rating in a research note on Thursday, August 20th. Morgan Stanley increased their price target on Lumentum from $900.00 to $1,000.00 and gave the stock an "equal weight" rating in a research note on Wednesday, August 12th. Wolfe Research reissued an "outperform" rating on shares of Lumentum in a report on Friday, August 21st. Raymond James Financial restated an "outperform" rating and issued a $1,036.00 price objective on shares of Lumentum in a research report on Wednesday, August 12th. Finally, Stifel Nicolaus increased their target price on Lumentum from $1,100.00 to $1,232.00 and gave the stock a "buy" rating in a research report on Monday, October 5th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Lumentum presently has an average rating of "Moderate Buy" and an average price target of $1,078.75.

Lumentum Price Performance

Shares of NASDAQ:LITE opened at $1,103.35 on Friday. The firm has a market cap of $99.94 billion, a price-to-earnings ratio of -13.42 and a beta of 1.53. The firm has a fifty day moving average price of $923.68 and a 200 day moving average price of $869.95. Lumentum Holdings Inc. has a fifty-two week low of $147.81 and a fifty-two week high of $1,143.00. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.40 and a current ratio of 1.68.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $987.70 million. During the same period in the previous year, the firm posted $0.88 EPS. Lumentum's revenue for the quarter was up 109.3% compared to the same quarter last year. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, sell-side analysts expect that Lumentum Holdings Inc. will post 19.78 earnings per share for the current fiscal year.

Lumentum Company Profile

Lumentum Holdings Inc is a photonics and optical technology company that develops and manufactures products used to transmit, process and manage light. Its solutions support communications networks, data centers, cloud computing infrastructure, industrial applications, and other technology markets that rely on high-speed optical connectivity and precision lasers.

The company's product portfolio includes optical components and modules for telecommunications and networking, lasers and laser systems, optical amplifiers, wavelength-management products, and photonic subsystems.

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