Q Fund Management Hong Kong Ltd Acquires 7,780 Shares of Lumentum Holdings Inc. $LITE

Key Points

• Q Fund Management Hong Kong increased its Lumentum stake by 827.7% in the third quarter, buying 7,780 shares and bringing its total holdings to 8,720 shares valued at $8.47 million. Institutional investors collectively own 94.05% of the stock.
• Lumentum reported quarterly EPS of $3.23, beating estimates of $2.97, while revenue rose 109.3% year over year to $1.01 billion. Analysts maintain a “Moderate Buy” consensus with an average price target of $1,078.75.
• The stock benefits from strong AI-infrastructure demand and a reported backlog extending into early 2029, but valuation and sector risks remain. Shares have faced pressure as investors question the durability of AI data-center spending, while insiders sold nearly $86 million of stock over the past 90 days.

Q Fund Management Hong Kong Ltd grew its holdings in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 827.7% during the 3rd quarter, according to its most recent Form 13F filing with the SEC. The firm owned 8,720 shares of the technology company's stock after buying an additional 7,780 shares during the period. Lumentum accounts for 7.6% of Q Fund Management Hong Kong Ltd's portfolio, making the stock its 6th biggest position. Q Fund Management Hong Kong Ltd's holdings in Lumentum were worth $8,469,000 as of its most recent SEC filing.

Other hedge funds have also recently made changes to their positions in the company. Jupiter Topco LLC purchased a new stake in Lumentum in the second quarter worth $1,621,396,000. Amundi increased its position in Lumentum by 188.7% during the 2nd quarter. Amundi now owns 658,427 shares of the technology company's stock valued at $564,970,000 after purchasing an additional 430,355 shares during the period. WT Asset Management Ltd purchased a new position in Lumentum during the 2nd quarter valued at $494,688,000. Janus Henderson Group PLC raised its holdings in Lumentum by 163.2% in the 1st quarter. Janus Henderson Group PLC now owns 567,182 shares of the technology company's stock worth $398,590,000 after purchasing an additional 351,676 shares in the last quarter. Finally, Legal & General Group Plc bought a new position in Lumentum in the 2nd quarter worth $376,539,000. 94.05% of the stock is owned by hedge funds and other institutional investors.

Lumentum Price Performance

LITE opened at $987.99 on Wednesday. The company has a current ratio of 1.68, a quick ratio of 1.40 and a debt-to-equity ratio of 0.01. The company has a market cap of $89.49 billion, a price-to-earnings ratio of -12.02 and a beta of 1.53. The stock has a fifty day simple moving average of $930.77 and a two-hundred day simple moving average of $873.79. Lumentum Holdings Inc. has a 12-month low of $152.54 and a 12-month high of $1,143.00.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its earnings results on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, beating analysts' consensus estimates of $2.97 by $0.26. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The firm had revenue of $1.01 billion for the quarter, compared to analysts' expectations of $987.70 million. During the same quarter in the previous year, the business posted $0.88 EPS. The company's quarterly revenue was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Research analysts predict that Lumentum Holdings Inc. will post 19.79 earnings per share for the current fiscal year.

Key Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum, Astera Labs and Corning demonstrated a 1060 nm VCSEL-based PCIe-over-optics platform for AI rack-scale connectivity. The technology could support future data-center bandwidth demand and strengthen Lumentum’s position in AI infrastructure. Lumentum, Astera Labs, and Corning Demonstrate PCIe over Optics
• Positive Sentiment: Several reports remain bullish, citing a backlog that is booked through early 2029, demand that exceeds available supply and a potential free-cash-flow inflection. These factors suggest strong visibility for revenue growth, although the shares trade at a demanding valuation. Lumentum’s Massive Backlog and Demand
• Neutral Sentiment: Investors and analysts have mixed views. Some see Lumentum as a leading momentum and AI stock, while others argue that its substantial gains this year warrant taking profits after a recent pullback. Analysts’ Opinions Are Mixed on Lumentum
• Negative Sentiment: Zacks Research downgraded LITE from “strong buy” to “hold,” reducing a source of near-term buying support.
• Negative Sentiment: Optical stocks have fallen broadly as investors question whether AI data-center spending can remain durable after their significant year-to-date gains. Lumentum’s long-term commitments and booked capacity have not insulated it from this sector repricing. Lumentum Down After AI Optics Concerns

Insider Buying and Selling

In related news, CFO Wajid Ali sold 24,542 shares of the business's stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $1,048.50, for a total transaction of $25,732,287.00. Following the sale, the chief financial officer owned 75,074 shares of the company's stock, valued at $78,715,089. The trade was a 24.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 1,500 shares of the company's stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $827.82, for a total transaction of $1,241,730.00. Following the completion of the sale, the insider owned 100,434 shares in the company, valued at approximately $83,141,273.88. This trade represents a 1.47% decrease in their position. The SEC filing for this sale provides additional information. 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 sold 94,496 shares of company stock worth $85,978,498 over the last 90 days. Corporate insiders own 0.28% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the stock. UBS Group set a $820.00 target price on shares of Lumentum in a research note on Wednesday, August 12th. Stifel Nicolaus increased their price target on shares of Lumentum from $1,100.00 to $1,232.00 and gave the stock a "buy" rating in a research note on Monday, October 5th. Wolfe Research reissued an "outperform" rating on shares of Lumentum in a research note on Friday, August 21st. Raymond James Financial restated an "outperform" rating and issued a $1,036.00 price objective on shares of Lumentum in a report on Wednesday, August 12th. Finally, Evercore started coverage on Lumentum in a research report on Monday, August 31st. They set an "outperform" rating and a $1,100.00 price objective on the stock. Sixteen analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $1,078.75.

Lumentum Company Profile

Lumentum Holdings Inc is a photonics and optical technology company that develops and manufactures products used to transmit, process and manage light. Its solutions support communications networks, data centers, cloud computing infrastructure, industrial applications, and other technology markets that rely on high-speed optical connectivity and precision lasers.

The company's product portfolio includes optical components and modules for telecommunications and networking, lasers and laser systems, optical amplifiers, wavelength-management products, and photonic subsystems.

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