Pacer Advisors Inc. Sells 8,733 Shares of Lumentum Holdings Inc. $LITE

Key Points

• Pacer Advisors cut its Lumentum stake by 70.6% in the first quarter, selling 8,733 shares and retaining 3,632 shares valued at approximately $2.55 million. Institutional investors collectively own 94.05% of the company.
• Wall Street remains broadly optimistic, with 14 analysts rating Lumentum a Buy and seven a Hold. The stock has a consensus rating of “Moderate Buy” and an average price target of $1,012.67.
• Lumentum reported quarterly earnings of $2.37 per share, beating estimates, while revenue rose 90.1% year over year to $808.4 million. Shares opened at $890.17, but the stock carries a high valuation, with a P/E ratio of 164.85 and potential execution and supply-related risks.

Pacer Advisors Inc. lowered its holdings in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 70.6% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 3,632 shares of the technology company's stock after selling 8,733 shares during the quarter. Pacer Advisors Inc.'s holdings in Lumentum were worth $2,552,000 at the end of the most recent quarter.

Several other institutional investors have also modified their holdings of LITE. Hilton Head Capital Partners LLC acquired a new stake in Lumentum during the 1st quarter worth approximately $25,000. Sachetta LLC boosted its holdings in shares of Lumentum by 118.8% in the first quarter. Sachetta LLC now owns 35 shares of the technology company's stock valued at $25,000 after buying an additional 19 shares during the period. Wiser Advisor Group LLC boosted its holdings in shares of Lumentum by 6,000.0% in the first quarter. Wiser Advisor Group LLC now owns 61 shares of the technology company's stock valued at $43,000 after buying an additional 60 shares during the period. SJS Investment Consulting Inc. increased its position in shares of Lumentum by 687.5% during the first quarter. SJS Investment Consulting Inc. now owns 63 shares of the technology company's stock worth $44,000 after acquiring an additional 55 shares in the last quarter. Finally, Truvestments Capital LLC increased its position in shares of Lumentum by 300.0% during the fourth quarter. Truvestments Capital LLC now owns 76 shares of the technology company's stock worth $28,000 after acquiring an additional 57 shares in the last quarter. Institutional investors own 94.05% of the company's stock.

Wall Street Analyst Weigh In

Several research firms recently commented on LITE. Rosenblatt Securities boosted their price objective on shares of Lumentum from $900.00 to $1,300.00 and gave the company a "buy" rating in a research report on Wednesday, May 6th. Citic Securities increased their target price on Lumentum from $620.00 to $1,186.00 in a report on Monday, May 11th. Stifel Nicolaus lifted their price target on Lumentum from $800.00 to $1,100.00 and gave the company a "buy" rating in a research note on Tuesday, May 5th. Mizuho set a $1,100.00 price target on Lumentum in a research note on Wednesday, May 6th. Finally, BNP Paribas Exane boosted their price target on Lumentum from $1,040.00 to $1,300.00 in a report on Wednesday, May 6th. Fourteen equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $1,012.67.

Lumentum Stock Performance

Shares of LITE stock opened at $890.17 on Friday. The company's fifty day simple moving average is $815.23 and its 200-day simple moving average is $753.92. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01. The firm has a market cap of $69.26 billion, a PE ratio of 164.85 and a beta of 1.50. Lumentum Holdings Inc. has a 12 month low of $111.20 and a 12 month high of $1,085.68.

Lumentum (NASDAQ:LITE - Get Free Report) last released its earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, beating analysts' consensus estimates of $2.27 by $0.10. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The business had revenue of $808.40 million during the quarter, compared to the consensus estimate of $810.21 million. During the same quarter last year, the firm earned $0.57 earnings per share. The firm's revenue for the quarter was up 90.1% compared to the same quarter last year. Equities research analysts expect that Lumentum Holdings Inc. will post 6.42 EPS for the current fiscal year.

Insider Activity at Lumentum

In related news, insider Yuen Wupen sold 3,210 shares of the company's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $953.95, for a total transaction of $3,062,179.50. Following the sale, the insider owned 81,488 shares in the company, valued at approximately $77,735,477.60. This represents a 3.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, 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, insider Vincent Retort sold 3,183 shares of the company's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $3,036,422.85. Following the sale, the insider owned 89,563 shares in the company, valued at $85,438,623.85. The trade was a 3.43% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 37,760 shares of company stock worth $35,670,125. Corporate insiders own 0.43% of the company's stock.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: AI-photonics rally: Lumentum benefited from broad strength across “AI pick-and-shovel” stocks. Strong results from peers helped reinforce expectations that rising data-center connectivity requirements will support demand for optical and photonic products. These AI ‘Pick and Shovel' Plays Soared on Friday
• Positive Sentiment: Potential China-related tailwind: Reports that the Federal Communications Commission could restrict imports of new Chinese optical transceivers are raising the possibility of greater market share and pricing opportunities for U.S.-based suppliers such as Lumentum. Analysts have cited an approximately $1,100 price target and continued earnings-growth potential. The Trump Administration Could Soon Create the ‘Mother of All' AI Bottlenecks LITE Stock Alert: Analysts See Big Upside Ahead for Lumentum
• Positive Sentiment: Strong growth expectations ahead of earnings: Lumentum is expected to report fiscal fourth-quarter results Tuesday. Investors are focused on whether strong AI optics demand and the ramp of 1.6-terabit transceivers can drive another strong quarter, with options markets anticipating significant volatility around the release. Should Lumentum Stock Be in Your Portfolio Pre-Q4 Earnings? Nvidia-Backed Lumentum Reports Earnings Tuesday
• Neutral Sentiment: Peer confirmation: Applied Optoelectronics’ sharply higher second-quarter revenue and gains among other optical suppliers provided additional evidence of robust industry demand, helping lift sentiment toward Lumentum. Applied Optoelectronics Zooms Higher on Quarterly Results
• Negative Sentiment: Execution and valuation risks: Supply constraints could limit Lumentum’s ability to capitalize on AI demand, while the stock’s substantial 2026 advance and elevated valuation leave it vulnerable to an earnings miss, cautious guidance, or profit-taking. Lumentum: You Snooze, You Lose

Lumentum Profile

Lumentum Holdings Inc, headquartered in San Jose, California, is a leading provider of photonic technologies that enable high-speed optical communication networks and advanced industrial applications. The company designs and manufactures a broad range of lasers, optical modules and subsystems tailored to the evolving requirements of telecommunications carriers, cloud data centers and enterprise networking.

Its core product portfolio includes tunable and fixed-wavelength laser transmitters, coherent optical engines, transceivers for long-haul, metro and data center interconnects, as well as test and measurement instruments.

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