Lumentum Holdings Inc. $LITE Stock: N10 Wealth LLC Boosts Holdings

Key Points

• N10 Wealth increased its Lumentum stake by 31.9% in the third quarter, holding 9,093 shares valued at approximately $8.8 million. Institutional investors collectively own 94.05% of the company.
• Lumentum shares fell 8.5% to $903.59 during Wednesday trading, despite the company beating quarterly earnings and revenue estimates and reporting 109.3% year-over-year revenue growth.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $1,078.75, although concerns about the stock’s premium valuation and the sustainability of AI-driven demand have contributed to recent volatility.

N10 Wealth LLC boosted its holdings in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 31.9% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 9,093 shares of the technology company's stock after purchasing an additional 2,197 shares during the period. Lumentum comprises approximately 2.5% of N10 Wealth LLC's investment portfolio, making the stock its 17th biggest holding. N10 Wealth LLC's holdings in Lumentum were worth $8,832,000 as of its most recent SEC filing.

Several other hedge funds also recently added to or reduced their stakes in the business. Jupiter Topco LLC purchased a new position in shares of Lumentum during the 2nd quarter valued at about $1,621,396,000. Amundi lifted its holdings in shares of Lumentum by 188.7% in the 2nd quarter. Amundi now owns 658,427 shares of the technology company's stock valued at $564,970,000 after buying an additional 430,355 shares during the period. WT Asset Management Ltd purchased a new stake in shares of Lumentum in the second quarter worth about $494,688,000. Janus Henderson Group PLC boosted its stake in shares of Lumentum by 163.2% in the first quarter. Janus Henderson Group PLC now owns 567,182 shares of the technology company's stock worth $398,590,000 after buying an additional 351,676 shares during the last quarter. Finally, Legal & General Group Plc purchased a new stake in shares of Lumentum in the second quarter worth about $376,539,000. 94.05% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Lumentum

In other news, insider Yuen Wupen sold 1,500 shares of the business's stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $827.82, for a total value of $1,241,730.00. Following the sale, the insider directly owned 100,434 shares of the company's stock, valued at approximately $83,141,273.88. The trade was a 1.47% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at 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, CFO Wajid Ali sold 24,542 shares of the business's stock in a transaction that occurred on Thursday, October 1st. The shares were 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 directly owned 75,074 shares in the company, valued at $78,715,089. This trade represents a 24.64% decrease in their ownership of the stock. 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 a total of 94,496 shares of company stock valued at $85,978,498 over the last quarter. 0.28% of the stock is owned by insiders.

Lumentum Trading Down 8.5%

Shares of NASDAQ LITE traded down $84.40 during mid-day trading on Wednesday, reaching $903.59. 3,253,062 shares of the company's stock were exchanged, compared to its average volume of 5,478,257. The firm has a market capitalization of $81.85 billion, a price-to-earnings ratio of -11.00 and a beta of 1.53. 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 Holdings Inc. has a 52-week low of $152.54 and a 52-week high of $1,143.00. The company's 50-day moving average is $930.77 and its 200-day moving average is $873.79.

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

Key Stories Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Stifel raised its price target for Lumentum from $1,100 to $1,232, signaling continued confidence in the company’s growth prospects. Stifel raised target for Lumentum stock
• Positive Sentiment: Lumentum’s order book is reportedly booked through early 2029, with demand exceeding available supply. This backlog supports revenue visibility and reinforces the company’s exposure to AI data-center buildouts. Lumentum's Massive Backlog and Demand Justify Buying at Today's Price
• Positive Sentiment: Recent commentary highlights potential for strong fiscal 2027 growth, improving free cash flow and a net cash position of approximately $1.1 billion. Lumentum also participated in a PCIe-over-optics demonstration for AI rack-scale systems. Lumentum: The Free Cash Flow Inflection
• Neutral Sentiment: Analyst views are mixed: Zacks Research downgraded Lumentum from “strong buy” to “hold,” while other coverage continues to describe the stock as a momentum or AI investment candidate.
• Negative Sentiment: Optical-networking stocks are experiencing a broad selloff after substantial year-to-date gains. Investors are taking profits and questioning whether AI infrastructure spending can remain durable enough to support current valuations. AI Funding Fears Hit Optical Networking Trade
• Negative Sentiment: Lumentum’s premium valuation makes the stock vulnerable to multiple compression if investors become less confident in long-term AI demand, even though product commitments and backlog remain strong. Lumentum Is Down After Long-Term AI Optics Commitments Raise Demand Questions

Analyst Ratings Changes

Several research analysts recently weighed in on LITE shares. Citigroup lifted their price target on Lumentum from $1,200.00 to $1,400.00 and gave the company a "buy" rating in a research report on Monday, September 28th. Sanford C. Bernstein started coverage on shares of Lumentum in a report on Wednesday, September 30th. They issued an "outperform" rating and a $1,220.00 price target for the company. JPMorgan Chase & Co. increased their target price on Lumentum from $1,165.00 to $1,280.00 and gave the company an "overweight" rating in a report on Wednesday, August 12th. Rosenblatt Securities reissued a "buy" rating and issued a $1,300.00 price target on shares of Lumentum in a research note on Monday, October 5th. Finally, Weiss Ratings lowered Lumentum from a "hold (c-)" rating to a "sell (d-)" rating in a research note on Wednesday, August 19th. Sixteen research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $1,078.75.

Lumentum 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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