Lumentum Holdings Inc. $LITE Stock Position Boosted by Fulcrum Asset Management LLP

Key Points

• Fulcrum Asset Management increased its Lumentum stake by 500.4% in the third quarter, to 7,541 shares valued at about $7.34 million. Hedge funds and institutional investors collectively own 94.05% of the company.
• Analysts have a consensus “Moderate Buy” rating and an average price target of $1,081.61; recent calls include a Needham target cut to $800 and a Morgan Stanley target increase to $1,000.
• Lumentum’s latest quarterly EPS of $4.57 beat estimates of $4.22, while revenue rose 136.5% year over year to $1.26 billion. The article also notes a proposed all-stock Marvell acquisition valued at about $115 billion, subject to regulatory approval, with the offer’s implied value tied to Marvell’s share price.

Fulcrum Asset Management LLP boosted its position in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 500.4% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 7,541 shares of the technology company's stock after purchasing an additional 6,285 shares during the period. Fulcrum Asset Management LLP's holdings in Lumentum were worth $7,341,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Allspring Global Investments Holdings LLC boosted its position in shares of Lumentum by 12.6% during the third quarter. Allspring Global Investments Holdings LLC now owns 132,541 shares of the technology company's stock worth $138,609,000 after buying an additional 14,841 shares during the period. Candriam S.C.A. grew its holdings in shares of Lumentum by 30.5% during the third quarter. Candriam S.C.A. now owns 6,882 shares of the technology company's stock worth $6,709,000 after buying an additional 1,607 shares in the last quarter. Ethic Inc. grew its holdings in shares of Lumentum by 17.1% during the third quarter. Ethic Inc. now owns 8,796 shares of the technology company's stock worth $8,544,000 after buying an additional 1,283 shares in the last quarter. 180 Wealth Advisors LLC grew its holdings in shares of Lumentum by 6.8% during the third quarter. 180 Wealth Advisors LLC now owns 1,658 shares of the technology company's stock worth $1,610,000 after buying an additional 105 shares in the last quarter. Finally, Pictet Asset Management Holding SA raised its position in Lumentum by 157.1% in the 3rd quarter. Pictet Asset Management Holding SA now owns 183,399 shares of the technology company's stock valued at $178,128,000 after buying an additional 112,076 shares during the last quarter. Institutional investors and hedge funds own 94.05% of the company's stock.

Analyst Ratings Changes

Several research firms have commented on LITE. Stonex Financial upgraded Lumentum to a "strong-buy" rating in a research note on Monday, October 26th. Needham & Company LLC decreased their price target on shares of Lumentum from $1,040.00 to $800.00 and set a "buy" rating for the company in a research note on Tuesday, November 3rd. Wolfe Research reiterated an "outperform" rating on shares of Lumentum in a report on Friday, August 21st. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Lumentum in a report on Monday, August 31st. They issued a "buy" rating and a $1,200.00 price objective on the stock. Finally, Morgan Stanley boosted their price objective on shares of Lumentum from $900.00 to $1,000.00 and gave the stock an "equal weight" rating in a research report on Wednesday, August 12th. Two analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $1,081.61.

Key Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Some commentary sees Lumentum as potentially undervalued after Marvell agreed to acquire it, arguing the deal highlights demand for optical interconnects—a potential bottleneck in AI data centers. Lumentum’s shares also rose alongside a broader recovery in optical stocks. Article: Lumentum Holdings Could Be 90% Undervalued Following The Marvell Deal Article: Optical stocks rally
• Neutral Sentiment: The proposed all-stock Marvell deal values Lumentum at about $115 billion, with Lumentum shareholders set to receive 4.5 Marvell shares per share. That is not a fixed cash offer: its implied value will move with Marvell’s stock. The transaction is expected to take time to close and remains subject to regulatory approval. Article: Marvell Agreed to Pay $1,132 a Share for Lumentum
• Positive Sentiment: A bullish technical view says Lumentum is oversold after a steep decline, while analysts’ earnings-estimate increases could support a recovery. Article: Lumentum is Poised for a Turnaround
• Negative Sentiment: Recent pressure reflects a broader sell-off in AI and optical shares, alongside analyst downgrades and lower price expectations. The sharp recent declines suggest investors remain cautious despite the proposed acquisition and the latest rebound. Article: Lumentum Shares Down After Analyst Downgrade Article: AI optical stocks slide

Insider Buying and Selling

In other news, 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 transaction of $25,732,287.00. Following the completion of the transaction, 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. The sale 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, insider Yuen Wupen sold 307 shares of the business'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 value of $290,115.00. Following the transaction, the insider directly owned 108,320 shares in the company, valued at $102,362,400. The trade was a 0.28% 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. Over the last ninety days, insiders sold 94,496 shares of company stock valued at $85,978,498. Insiders own 0.28% of the company's stock.

Lumentum Price Performance

Lumentum stock opened at $538.59 on Monday. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.61 and a quick ratio of 1.27. The company's 50-day moving average is $894.13 and its 200-day moving average is $801.60. The firm has a market capitalization of $48.85 billion, a PE ratio of -6.84 and a beta of 1.64. Lumentum Holdings Inc. has a fifty-two week low of $215.35 and a fifty-two week high of $1,143.00.

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

Lumentum 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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