Styrax Capital LP Reduces Stock Position in Lumentum Holdings Inc. $LITE

Key Points

• Styrax Capital reduced its Lumentum position by 35.7% in the second quarter, selling 50,000 shares and retaining 90,000 shares worth approximately $77.2 million. Lumentum remains 5.1% of the firm’s portfolio.
• Institutional investors own approximately 94.05% of Lumentum’s stock, while insiders sold shares during the latest quarter, including sales by the CEO and other executives.
• Lumentum reported strong quarterly results, with revenue up 109.3% year over year to $1.01 billion and adjusted EPS of $3.23. Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $1,053.83, though valuation concerns remain after the stock’s sharp rally.

Styrax Capital LP cut its holdings in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 35.7% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 90,000 shares of the technology company's stock after selling 50,000 shares during the period. Lumentum accounts for 5.1% of Styrax Capital LP's investment portfolio, making the stock its 11th biggest position. Styrax Capital LP owned approximately 0.10% of Lumentum worth $77,225,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Hilton Head Capital Partners LLC bought a new position in shares of Lumentum in the first quarter worth $25,000. Sachetta LLC raised its stake in shares of Lumentum by 118.8% during the 1st quarter. Sachetta LLC now owns 35 shares of the technology company's stock valued at $25,000 after purchasing an additional 19 shares during the period. Truvestments Capital LLC raised its stake in shares of Lumentum by 300.0% during the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company's stock valued at $28,000 after purchasing an additional 57 shares during the period. Triumph Capital Management purchased a new stake in Lumentum during the 4th quarter worth about $30,000. Finally, Danske Bank A S purchased a new stake in Lumentum during the 3rd quarter worth about $33,000. Institutional investors own 94.05% of the company's stock.

Lumentum News Roundup

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Optical-photonics rally: Lumentum gained alongside Coherent and other optical-networking stocks as investors focused on rising demand for lasers and optical components used to connect high-performance AI chips. Optical-photonics stocks article
• Positive Sentiment: Favorable analyst coverage: Deutsche Bank initiated coverage with a Buy rating, while Evercore also began research coverage. New institutional coverage can improve visibility and support investor interest in LITE. Deutsche Bank coverage article Evercore coverage article
• Positive Sentiment: AI infrastructure fundamentals remain strong: Recent results showed approximately $1.01 billion in quarterly revenue, adjusted EPS of $3.23, and guidance for $1.225 billion–$1.275 billion in revenue. Nvidia’s investment and purchase commitment for Lumentum’s laser components further reinforce the AI-demand thesis.
• Neutral Sentiment: Portfolio concentration warning: One analysis said LITE’s roughly 680% advance can make it an outsized portfolio position. The article remained positive on the business but advised investors to reassess position sizing after the substantial rally. Lumentum portfolio concentration article
• Negative Sentiment: Valuation concerns: A Seeking Alpha analysis argued that Lumentum has become too expensive following its dramatic run, creating a potential headwind if growth or AI infrastructure spending fails to exceed already-high expectations. Lumentum valuation article
• Negative Sentiment: Insider selling: Yuen Wupen sold two separate blocks of 500 shares for a combined $862,245. Both trades were conducted under a pre-arranged Rule 10b5-1 plan and represented only 0.43% of the insider’s holdings, making the signal relatively limited.

Wall Street Analyst Weigh In

A number of research firms have weighed in on LITE. JPMorgan Chase & Co. lifted their target price on Lumentum from $1,165.00 to $1,280.00 and gave the company an "overweight" rating in a report on Wednesday, August 12th. Mizuho increased their price target on shares of Lumentum from $1,100.00 to $1,140.00 and gave the stock an "outperform" rating in a report on Wednesday, August 12th. Rosenblatt Securities restated a "buy" rating and issued a $1,300.00 price objective on shares of Lumentum in a research report on Wednesday, August 12th. Wolfe Research reaffirmed an "outperform" rating on shares of Lumentum in a research note on Friday, August 21st. Finally, Evercore began coverage on shares of Lumentum in a report on Monday, August 31st. They set an "outperform" rating and a $1,100.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,053.83.

Insider Activity at Lumentum

In related news, CEO Michael E. Hurlston sold 548 shares of the stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $958.66, for a total value of $525,345.68. Following the transaction, the chief executive officer owned 186,951 shares of the company's stock, valued at $179,222,445.66. This represents a 0.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Yuen Wupen sold 1,500 shares of Lumentum stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $827.82, for a total value of $1,241,730.00. Following the sale, the insider directly owned 100,434 shares of the company's stock, valued at approximately $83,141,273.88. This trade represents a 1.47% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 65,147 shares of company stock worth $55,812,856 over the last quarter. 0.43% of the stock is currently owned by corporate insiders.

Lumentum Stock Performance

NASDAQ:LITE opened at $881.26 on Friday. The business's 50-day moving average price is $814.62 and its two-hundred day moving average price is $815.74. Lumentum Holdings Inc. has a twelve month low of $144.20 and a twelve month high of $1,085.68. The stock has a market cap of $79.05 billion, a P/E ratio of -10.72 and a beta of 1.53. The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01.

Lumentum (NASDAQ:LITE - Get Free Report) last issued its quarterly earnings data on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, topping the consensus estimate of $2.97 by $0.26. The company had revenue of $1.01 billion during the quarter, compared to analyst estimates of $987.70 million. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%.Lumentum's revenue was up 109.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, equities analysts predict that Lumentum Holdings Inc. will post 19.78 EPS for the current fiscal year.

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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This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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