Paradigm Capital Management Inc. NY Takes Position in Lumentum Holdings Inc. $LITE

Key Points

• Paradigm Capital Management initiated a sizable Lumentum position in the second quarter, purchasing 33,600 shares valued at approximately $28.8 million. Institutional investors collectively own 94.05% of Lumentum’s outstanding stock.
• Lumentum reported strong operating results, with quarterly EPS of $3.23 exceeding estimates and revenue rising 109.3% year over year to $1.01 billion. The company guided to fiscal Q1 2027 EPS of $4.05–$4.35, supported by AI-related demand for optical components.
• Analyst sentiment remains positive but valuation and risk concerns persist: Lumentum has a “Moderate Buy” consensus rating with an average price target of $1,044.67, while the stock recently traded down 4.2% and insiders have sold more than $14.3 million of shares over the past 90 days.

Paradigm Capital Management Inc. NY acquired a new position in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 33,600 shares of the technology company's stock, valued at approximately $28,831,000. Lumentum makes up about 0.8% of Paradigm Capital Management Inc. NY's investment portfolio, making the stock its 26th biggest position.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Arrowstreet Capital Limited Partnership raised its stake in Lumentum by 18.7% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company's stock valued at $683,661,000 after buying an additional 291,591 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of Lumentum by 9.6% during the fourth quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company's stock worth $521,563,000 after acquiring an additional 123,265 shares during the last quarter. Situational Awareness LP increased its holdings in shares of Lumentum by 210.9% during the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company's stock valued at $478,577,000 after acquiring an additional 880,800 shares in the last quarter. Norges Bank acquired a new position in shares of Lumentum during the fourth quarter valued at about $474,495,000. Finally, Value Aligned Research Advisors LLC purchased a new position in shares of Lumentum in the 4th quarter valued at approximately $432,062,000. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Analyst estimates increased. Northland Securities raised its Q1 EPS estimates for Lumentum, suggesting improving expectations for the company’s near-term profitability. Q1 EPS Estimates for Lumentum Raised by Northland Securities
• Positive Sentiment: AI demand and guidance remain potential catalysts. Lumentum’s latest results included sharply higher sales, revenue growth of 109.3% year over year, and Q1 fiscal 2027 EPS guidance of $4.05 to $4.35. These trends support the view that demand for optical components used in AI infrastructure could drive better results ahead. Lumentum stock sinks. Why better times may be ahead
• Neutral Sentiment: Strong operating performance is competing with valuation concerns. Lumentum exceeded quarterly EPS and revenue estimates, but investors are reassessing whether its substantial year-to-date gains already reflect much of the AI opportunity. The stock has pulled back 10.55% over the past week and 4.84% over the past three months. Lumentum Holdings (LITE) As AI Demand And Fresh Guidance Put Valuation In Focus
• Negative Sentiment: Reported losses and peer weakness pressured sentiment. Despite adjusted earnings and revenue beats, Lumentum swung to a sizeable net loss. Shares also declined alongside optical-communications peers Coherent and Applied Optoelectronics, with Applied Optoelectronics’ planned $600 million equity offering adding concern about dilution and broader sector conditions. Coherent and Lumentum AI optics suppliers earnings analysis
• Negative Sentiment: Insider selling may weigh on confidence. CEO Michael Hurlston sold 6,185 shares valued at approximately $5.1 million, reducing his direct holdings by about 5%; an SVP also sold roughly $1.6 million in stock. These transactions do not necessarily indicate deteriorating fundamentals but can add short-term selling pressure. Lumentum CEO stock sale

Insider Buying and Selling

In related news, SVP Jae Kim sold 1,904 shares of Lumentum stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $827.82, for a total transaction of $1,576,169.28. Following the completion of the transaction, the senior vice president directly owned 42,096 shares in the company, valued at approximately $34,847,910.72. This trade represents a 4.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed 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 Yuen Wupen sold 500 shares of the business's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $898.15, for a total value of $449,075.00. Following the completion of the transaction, the insider directly owned 93,229 shares of the company's stock, valued at $83,733,626.35. The trade was a 0.53% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 16,352 shares of company stock worth $14,315,562 over the last ninety days. 0.43% of the stock is owned by corporate insiders.

Analyst Ratings Changes

A number of research firms recently commented on LITE. JPMorgan Chase & Co. lifted their target price on shares of Lumentum from $1,165.00 to $1,280.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 12th. Morgan Stanley upped their price target on shares of 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 target on shares of Lumentum in a report on Wednesday, August 12th. Rosenblatt Securities reiterated a "buy" rating and set a $1,300.00 price objective on shares of Lumentum in a research note on Wednesday, August 12th. Finally, Loop Capital boosted their price objective on shares of Lumentum from $900.00 to $1,400.00 and gave the company a "buy" rating in a report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $1,044.67.

Lumentum Trading Down 4.2%

NASDAQ LITE opened at $830.17 on Tuesday. Lumentum Holdings Inc. has a 1 year low of $119.25 and a 1 year high of $1,085.68. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.68 and a quick ratio of 1.40. The company has a market capitalization of $74.47 billion, a PE ratio of -10.10 and a beta of 1.50. The company has a fifty day moving average of $807.22 and a 200 day moving average of $795.58.

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 for the quarter, topping the consensus estimate of $2.97 by $0.26. The company had revenue of $1.01 billion for 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 firm's revenue for the quarter was up 109.3% compared to the same quarter last year. During the same period last year, the firm earned $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Research analysts forecast that Lumentum Holdings Inc. will post 19.76 earnings per share for the current year.

Lumentum Company 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.

Want to see what other hedge funds are holding LITE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Lumentum Holdings Inc. (NASDAQ:LITE - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source