Pinnacle Associates Ltd. Decreases Position in Lumentum Holdings Inc. $LITE

Key Points

• Pinnacle Associates reduced its Lumentum stake by 38.3% in the fourth quarter, selling 74,142 shares and leaving it with 119,303 shares worth about $43.97 million.
• Lumentum has seen strong operational momentum, recently beating earnings estimates and raising guidance, helped by AI and cloud data center demand; it also joined the Nasdaq-100, which can boost index-fund buying.
• Analysts remain broadly bullish despite the stock’s big rally, with multiple firms raising price targets and the consensus rating at Moderate Buy with an average target of $1,012.43.

Pinnacle Associates Ltd. cut its stake in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 38.3% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 119,303 shares of the technology company's stock after selling 74,142 shares during the quarter. Pinnacle Associates Ltd. owned approximately 0.17% of Lumentum worth $43,974,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Federated Hermes Inc. lifted its stake in Lumentum by 7,168.8% in the 3rd quarter. Federated Hermes Inc. now owns 362,352 shares of the technology company's stock valued at $58,958,000 after buying an additional 357,367 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. purchased a new position in Lumentum in the 4th quarter valued at about $6,755,000. Headwater Capital Co Ltd purchased a new position in Lumentum in the 3rd quarter valued at about $20,339,000. Estate Counselors LLC purchased a new position in Lumentum in the 4th quarter valued at about $4,239,000. Finally, China Universal Asset Management Co. Ltd. purchased a new position in Lumentum in the 3rd quarter valued at about $1,383,000. 94.05% of the stock is owned by hedge funds and other institutional investors.

Lumentum News Roundup

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum was added to the Nasdaq-100, a major catalyst that can trigger buying from index funds and other benchmark-tracking investors. Lumentum Joins the Nasdaq-100 Index®, Achieving New Milestone in Global Growth
• Positive Sentiment: Recent earnings momentum remains strong, with Lumentum beating estimates and issuing upbeat guidance tied to AI and cloud data center demand. Lumentum Stock Rises 6% After Q3 Earnings: Should You Hold or Fold?
• Positive Sentiment: Wall Street continues to raise expectations: Northland Securities boosted future EPS estimates, and Citic Securities reportedly lifted its price target to $1,186, reinforcing the bull case for further growth. Lumentum NASDAQ: LITE Given New $1,186.00 Price Target at Citic Securities
• Neutral Sentiment: Several recent pieces note that Lumentum’s share price has already had a huge run, so some investors are now debating whether the stock is getting stretched after the rally.
• Neutral Sentiment: Commentary also points to potential supply constraints and a premium valuation, which may limit near-term upside even though demand remains very strong.
• Negative Sentiment: Insider selling by executives and directors may create some caution, though the sales were disclosed as part of pre-arranged trading plans and do not necessarily signal a change in fundamentals. Lumentum NASDAQ: LITE SVP Sells $1,838,263.67 in Stock

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. Morgan Stanley increased their price objective on shares of Lumentum from $710.00 to $900.00 and gave the company an "equal weight" rating in a report on Wednesday, May 6th. Raymond James Financial reiterated an "outperform" rating and issued a $1,014.00 price objective on shares of Lumentum in a report on Wednesday, May 6th. Needham & Company LLC increased their price objective on shares of Lumentum from $880.00 to $1,040.00 and gave the company a "buy" rating in a report on Tuesday, April 21st. Bank of America increased their price objective on shares of Lumentum to $520.00 and gave the company a "neutral" rating in a report on Wednesday, February 4th. Finally, Loop Capital increased 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. Thirteen equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Lumentum has an average rating of "Moderate Buy" and an average price target of $1,012.43.

Lumentum Stock Up 3.8%

LITE stock opened at $1,030.10 on Thursday. The firm has a 50-day moving average of $798.01 and a two-hundred day moving average of $526.37. The company has a market cap of $80.14 billion, a price-to-earnings ratio of 190.76 and a beta of 1.53. The company has a current ratio of 1.14, a quick ratio of 0.97 and a debt-to-equity ratio of 0.01. Lumentum Holdings Inc. has a 12 month low of $71.04 and a 12 month high of $1,085.68.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.27 by $0.10. The business had revenue of $808.40 million during the quarter, compared to the consensus estimate of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The business's revenue was up 90.1% compared to the same quarter last year. During the same quarter last year, the firm earned $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, analysts forecast that Lumentum Holdings Inc. will post 6.49 earnings per share for the current fiscal year.

Insider Buying and Selling at Lumentum

In other news, Director Ian Small sold 3,500 shares of the firm's stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $911.17, for a total transaction of $3,189,095.00. Following the completion of the sale, the director owned 25,962 shares in the company, valued at $23,655,795.54. This trade represents a 11.88% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Vincent Retort sold 3,441 shares of the firm's stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $545.78, for a total transaction of $1,878,028.98. Following the sale, the insider owned 95,975 shares of the company's stock, valued at $52,381,235.50. This represents a 3.46% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 29,333 shares of company stock worth $24,049,017. Insiders own 0.43% of the company's stock.

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.

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