Principal Financial Group Inc. Sells 2,526 Shares of Lumentum Holdings Inc. $LITE

Key Points

• Principal Financial Group trimmed its Lumentum stake by 1.6% in the fourth quarter, selling 2,526 shares and still holding 152,428 shares valued at about $56.2 million.
• Lumentum posted a strong fiscal Q3, beating earnings estimates with EPS of $2.37 and revenue up 90.1% year over year, helped by strong cloud and AI demand.
• Analysts have turned increasingly bullish, with multiple firms raising price targets; the stock now has a Moderate Buy consensus and an average target price of $1,003.75.

Principal Financial Group Inc. cut its position in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 1.6% during the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 152,428 shares of the technology company's stock after selling 2,526 shares during the quarter. Principal Financial Group Inc. owned about 0.21% of Lumentum worth $56,183,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds also recently made changes to their positions in LITE. Federated Hermes Inc. boosted its holdings in Lumentum by 7,168.8% in the third quarter. Federated Hermes Inc. now owns 362,352 shares of the technology company's stock worth $58,958,000 after acquiring an additional 357,367 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new stake in Lumentum in the fourth quarter worth $6,755,000. FengHe Fund Management Pte. Ltd. bought a new stake in Lumentum in the third quarter worth $71,771,000. Headwater Capital Co Ltd bought a new stake in Lumentum in the third quarter worth $20,339,000. Finally, Estate Counselors LLC bought a new stake in Lumentum in the fourth quarter worth $4,239,000. 94.05% of the stock is currently owned by institutional investors.

Key Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum reported fiscal Q3 earnings that beat estimates, with revenue up 90% year over year on strong cloud and AI demand; the company also said 1.6T transceiver shipments are set to ramp in fiscal Q4. Article Title
• Positive Sentiment: Several analysts turned constructive on Lumentum, including Craig Hallum raising its price target to $1,150, Barclays lifting its target to $1,000, Loop Capital boosting its target to $1,400, and Rothschild Redburn initiating coverage with a Buy rating and a $1,270 target.
• Positive Sentiment: Other note writers, including JPMorgan and BNP Paribas Exane, also issued upbeat outlooks, reinforcing the view that demand is exceeding supply and that the company remains well positioned in AI and cloud optics.
• Neutral Sentiment: One market report said the stock was among several technology names with conflicted analyst views, suggesting investors are still weighing valuation against growth expectations. Article Title
• Negative Sentiment: Despite the strong fundamentals, Lumentum shares slipped intraday as the AI optics trade cooled, with peers like Coherent and Applied Optoelectronics also falling sharply, pointing to sector profit-taking rather than company-specific weakness. Article Title

Insider Transactions at Lumentum

In related news, Director Penny Herscher sold 4,000 shares of the company's stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $597.29, for a total transaction of $2,389,160.00. Following the completion of the sale, the director owned 2,057 shares in the company, valued at approximately $1,228,625.53. This represents a 66.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Vincent Retort sold 3,441 shares of the company's stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $545.78, for a total value of $1,878,028.98. Following the sale, the insider owned 95,975 shares of the company's stock, valued at approximately $52,381,235.50. This trade represents a 3.46% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 60,926 shares of company stock worth $36,254,801 in the last three months. 0.43% of the stock is owned by insiders.

Lumentum Stock Up 1.2%

LITE stock opened at $903.12 on Friday. Lumentum Holdings Inc. has a 1-year low of $63.98 and a 1-year high of $1,021.00. The business has a fifty day moving average price of $776.13 and a 200-day moving average price of $502.93. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.45. The stock has a market capitalization of $70.26 billion, a P/E ratio of 167.24 and a beta of 1.53.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, topping the consensus estimate of $2.27 by $0.10. The firm had revenue of $808.40 million during the quarter, compared to analysts' expectations of $810.21 million. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The company's revenue was up 90.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. Equities analysts forecast that Lumentum Holdings Inc. will post 5.95 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several equities research analysts have commented on the company. Northland Securities set a $1,000.00 target price on Lumentum in a report on Monday, April 20th. Barclays boosted their target price on Lumentum from $750.00 to $1,000.00 and gave the stock an "equal weight" rating in a report on Wednesday. Loop Capital boosted their target price on Lumentum from $900.00 to $1,400.00 and gave the stock a "buy" rating in a report on Tuesday. B. Riley Financial reissued a "buy" rating on shares of Lumentum in a report on Friday, May 1st. Finally, JPMorgan Chase & Co. boosted their target price on Lumentum from $950.00 to $1,130.00 and gave the stock an "overweight" rating in a report on Wednesday. Thirteen research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $1,003.75.

About Lumentum

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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