Rakuten Investment Management Inc. Buys New Position in Lumentum Holdings Inc. $LITE

Key Points

• Rakuten Investment Management bought 18,377 Lumentum shares in the second quarter, worth approximately $15.6 million. Institutional investors and hedge funds collectively own 94.05% of the company.
• Lumentum recently exceeded quarterly expectations, reporting adjusted EPS of $3.23 versus $2.97 expected and revenue of $1.01 billion, up 109.3% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $1,044.67.
• Insiders sold a combined 64,563 shares worth $55.4 million over the past three months, mostly under pre-arranged Rule 10b5-1 plans. The stock also fell 6.4% amid a broader pullback in AI-optics shares, despite continued optimism around data-center and AI-networking demand.

Rakuten Investment Management Inc. purchased a new position in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 18,377 shares of the technology company's stock, valued at approximately $15,646,000.

Other hedge funds have also recently modified their holdings of the company. Advisors Asset Management Inc. grew its position in Lumentum by 36.8% during the 1st quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company's stock worth $59,000 after purchasing an additional 254 shares during the last quarter. NewEdge Advisors LLC lifted its stake in shares of Lumentum by 109.9% during the first quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company's stock worth $747,000 after buying an additional 6,275 shares during the period. Empowered Funds LLC grew its holdings in shares of Lumentum by 9.1% during the first quarter. Empowered Funds LLC now owns 8,139 shares of the technology company's stock valued at $507,000 after buying an additional 680 shares during the last quarter. Hsbc Holdings PLC acquired a new position in shares of Lumentum in the 2nd quarter valued at $298,000. Finally, Arrowstreet Capital Limited Partnership purchased a new position in Lumentum in the 2nd quarter worth $1,712,000. Institutional investors and hedge funds own 94.05% of the company's stock.

Insider Buying and Selling

In related news, CEO Michael E. Hurlston sold 548 shares of Lumentum stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $958.66, for a total transaction of $525,345.68. Following the transaction, the chief executive officer owned 186,951 shares in the company, valued at approximately $179,222,445.66. This trade represents a 0.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Vincent Retort sold 38,663 shares of the company's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $852.59, for a total value of $32,963,687.17. Following the completion of the sale, the insider owned 78,440 shares of the company's stock, valued at approximately $66,877,159.60. The trade was a 33.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 64,563 shares of company stock worth $55,448,750 in the last three months. Company insiders own 0.43% of the company's stock.

Analysts Set New Price Targets

LITE has been the topic of a number of research reports. Jefferies Financial Group reissued a "buy" rating and issued a $1,200.00 price objective on shares of Lumentum in a report on Wednesday, May 6th. Wolfe Research reiterated an "outperform" rating on shares of Lumentum in a report on Friday, August 21st. Barclays lifted their price objective on shares of Lumentum from $750.00 to $1,000.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 6th. Citic Securities increased their price objective on shares of Lumentum from $620.00 to $1,186.00 in a research note on Monday, May 11th. Finally, Weiss Ratings downgraded shares of Lumentum from a "hold (c-)" rating to a "sell (d-)" rating in a research report on Wednesday, August 19th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $1,044.67.

Lumentum News Roundup

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: AI infrastructure demand remains the core bullish driver. Lumentum supplies optical components used in high-speed data-center networks, and investors continue to view its 1.6T transceivers and 200G lasers as beneficiaries of accelerating AI-networking demand.
• Positive Sentiment: Recent operating results provide support. Lumentum’s latest quarter exceeded expectations, with $3.23 in adjusted earnings per share versus a $2.97 consensus estimate and revenue of $1.01 billion, up 109.3% year over year. Q1 fiscal 2027 EPS guidance of $4.05–$4.35 also remains encouraging.
• Neutral Sentiment: Management’s technology-conference appearance offered no clearly new catalyst. Lumentum presented at the Deutsche Bank 2026 Technology Conference, where investors focused on its AI-product outlook, capacity expansion and execution. The supplied transcript did not identify a specific new forecast or announcement. Lumentum Deutsche Bank Technology Conference Transcript
• Negative Sentiment: Sector-wide risk-off trading pressured the stock. Applied Optoelectronics and Lumentum reportedly fell about 6%, while Coherent declined about 5%, as the optics stocks that led the August rally pulled back together. A Barron’s report suggested the declines reflected peer-related sympathy selling rather than company-specific news. Optics Stocks Slide as AI Hardware Trade Cools
• Negative Sentiment: Several insiders sold shares. SVP Jae Kim sold 12,000 shares for approximately $10.2 million, while Vincent Retort sold 38,663 shares for about $33.0 million. CEO Michael Hurlston sold 548 shares for roughly $525,000. The transactions were conducted under pre-arranged Rule 10b5-1 plans, limiting their value as a discretionary bearish signal, but they add a modest overhang after the stock’s substantial rally. SEC CEO Insider Trading Filing
• Negative Sentiment: Valuation and competition heighten volatility. With LITE trading near its 52-week high, investors may be particularly sensitive to profit-taking, execution problems or competition from Cisco and NVIDIA in AI connectivity.

Lumentum Stock Down 6.4%

Lumentum stock opened at $895.00 on Friday. Lumentum Holdings Inc. has a 12 month low of $125.00 and a 12 month high of $1,085.68. The stock has a market capitalization of $80.28 billion, a PE ratio of -10.89 and a beta of 1.50. 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 business has a 50 day simple moving average of $811.83 and a 200-day simple moving average of $805.08.

Lumentum (NASDAQ:LITE - Get Free Report) last issued its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, topping the consensus estimate 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 company had revenue of $1.01 billion during the quarter, compared to analyst estimates of $987.70 million. During the same quarter in the previous year, the firm earned $0.88 EPS. The firm's revenue was up 109.3% compared to the same quarter last year. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. On average, analysts anticipate that Lumentum Holdings Inc. will post 19.76 EPS for the current fiscal year.

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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