Sanders Morris Harris LLC Buys 3,178 Shares of Lumentum Holdings Inc. $LITE

Key Points

• Institutional buying increased: Sanders Morris Harris acquired 3,178 Lumentum shares valued at approximately $3.1 million, while several other funds also expanded their positions. Institutional investors collectively own 94.05% of the company.
• Insiders have been selling: Lumentum insiders sold 94,496 shares worth nearly $86 million over the past three months, including significant sales by Vincent Retort and Jae Kim under pre-arranged Rule 10b5-1 plans.
• Analyst sentiment remains generally positive despite volatility: Lumentum has a “Moderate Buy” consensus rating and an average price target of $1,078.75, but shares recently fell 9.3% to $896.33 amid an optical-networking selloff. The company exceeded quarterly earnings and revenue estimates, with revenue up 109.3% year over year.

Sanders Morris Harris LLC acquired a new stake in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 3,178 shares of the technology company's stock, valued at approximately $3,087,000.

A number of other institutional investors also recently added to or reduced their stakes in the business. Fairfield Financial Advisors LTD raised its holdings in Lumentum by 27.4% during the third quarter. Fairfield Financial Advisors LTD now owns 330 shares of the technology company's stock worth $321,000 after purchasing an additional 71 shares during the last quarter. N10 Wealth LLC raised its stake in shares of Lumentum by 31.9% during the 3rd quarter. N10 Wealth LLC now owns 9,093 shares of the technology company's stock worth $8,832,000 after buying an additional 2,197 shares during the last quarter. N10 Assets LLC boosted its position in shares of Lumentum by 26.3% in the 3rd quarter. N10 Assets LLC now owns 8,608 shares of the technology company's stock worth $8,361,000 after buying an additional 1,794 shares in the last quarter. Generate Investment Management Ltd increased its holdings in Lumentum by 299.1% during the 3rd quarter. Generate Investment Management Ltd now owns 63,855 shares of the technology company's stock valued at $62,020,000 after acquiring an additional 47,855 shares in the last quarter. Finally, First Citizens Bank & Trust Co. acquired a new position in Lumentum during the third quarter worth about $1,323,000. Hedge funds and other institutional investors own 94.05% of the company's stock.

Insider Transactions at Lumentum

In other Lumentum news, insider Vincent Retort sold 38,663 shares of Lumentum stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $852.59, for a total transaction of $32,963,687.17. Following the transaction, the insider directly owned 78,440 shares of the company's stock, valued at $66,877,159.60. The trade was a 33.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Jae Kim sold 12,000 shares of the business's stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $852.58, for a total transaction of $10,230,960.00. Following the sale, the senior vice president owned 37,804 shares of the company's stock, valued at approximately $32,230,934.32. This represents a 24.09% 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. Insiders have sold a total of 94,496 shares of company stock valued at $85,978,498 in the last three months. 0.28% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the company. TD Cowen raised their price target on Lumentum from $800.00 to $820.00 and gave the stock a "hold" rating in a research report on Wednesday, August 12th. Bank of America reduced their price objective on Lumentum from $1,100.00 to $1,000.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 12th. Zacks Research lowered Lumentum from a "strong-buy" rating to a "hold" rating in a research note on Monday. Mizuho boosted their target price on shares of Lumentum from $1,100.00 to $1,140.00 and gave the company an "outperform" rating in a research note on Wednesday, August 12th. Finally, Evercore assumed coverage on shares of Lumentum in a research note on Monday, August 31st. They set an "outperform" rating and a $1,100.00 price target on the stock. Sixteen investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $1,078.75.

Lumentum Trading Down 9.3%

Shares of LITE traded down $91.66 during trading hours on Wednesday, hitting $896.33. The stock had a trading volume of 5,697,826 shares, compared to its average volume of 5,491,531. Lumentum Holdings Inc. has a 12-month low of $152.54 and a 12-month high of $1,143.00. The firm has a market cap of $81.19 billion, a P/E ratio of -10.90 and a beta of 1.53. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.40 and a current ratio of 1.68. The company's fifty day simple moving average is $930.77 and its 200 day simple moving average is $873.79.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.97 by $0.26. The firm had revenue of $1.01 billion during 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 quarterly revenue was up 109.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Equities research analysts forecast that Lumentum Holdings Inc. will post 19.79 EPS for the current fiscal year.

Lumentum News Roundup

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Stifel raised its price target for Lumentum from $1,100 to $1,232, signaling confidence in the company’s growth prospects and AI-related optical networking opportunity. Stifel raised target for Lumentum stock
• Positive Sentiment: Several investment articles highlighted Lumentum’s rapidly expanding backlog, demand exceeding supply, and optical components reportedly booked through 2029. The company is viewed as a key supplier of connectivity infrastructure for AI data centers. Lumentum’s Massive Backlog and Demand Justify Buying
• Positive Sentiment: Bullish coverage pointed to a potential free-cash-flow inflection, strong net cash, and substantial fiscal 2027 revenue growth as reasons the long-term investment case remains attractive, even after Lumentum’s significant 2026 gains. Lumentum free cash flow investment case
• Neutral Sentiment: Recent coverage continues to frame Lumentum as a leading photonics and AI-connectivity supplier, while noting that its strong share-price appreciation has increased expectations and valuation risk. What is Lumentum, the top pick in photonics?
• Negative Sentiment: The main catalyst for the decline is a sector-wide selloff in optical networking stocks. Investors are increasingly questioning how AI data-center projects will be financed and whether elevated infrastructure spending can continue at its current pace. Applied Optoelectronics and Coherent also fell sharply, amplifying pressure on Lumentum. AI funding fears hit optical stocks
• Negative Sentiment: Zacks Research downgraded Lumentum from “strong buy” to “hold,” adding to concerns that the stock’s momentum and valuation may have run ahead of near-term fundamentals.

Lumentum 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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