Taikang Asset Management Hong Kong Co Ltd Acquires Shares of 56,230 Lumentum Holdings Inc. $LITE

Key Points

• Taikang Asset Management Hong Kong initiated a new position in Lumentum during the fourth quarter, buying 56,230 shares valued at about $20.7 million. The stake represented 2.0% of Taikang’s holdings and 0.08% of Lumentum.
• Institutional ownership is very high, with hedge funds and asset managers holding 94.05% of the company. Other big investors, including Vanguard, Arrowstreet, Geode, Situational Awareness LP, and Norges Bank, also boosted or initiated positions.
• Lumentum reported strong quarterly results, beating EPS estimates with $2.37 per share and posting 90.1% year-over-year revenue growth. Analysts remain broadly bullish, with a consensus rating of Moderate Buy and an average price target of $1,021.95.

Taikang Asset Management Hong Kong Co Ltd acquired a new stake in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) during the 4th quarter, according to the company in its most recent filing with the SEC. The institutional investor acquired 56,230 shares of the technology company's stock, valued at approximately $20,726,000. Lumentum accounts for 2.0% of Taikang Asset Management Hong Kong Co Ltd's holdings, making the stock its 12th biggest holding. Taikang Asset Management Hong Kong Co Ltd owned 0.08% of Lumentum at the end of the most recent reporting period.

Several other large investors have also recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its stake in Lumentum by 0.6% in the 3rd quarter. Vanguard Group Inc. now owns 7,485,282 shares of the technology company's stock valued at $1,217,930,000 after buying an additional 41,975 shares during the period. Arrowstreet Capital Limited Partnership grew its position in Lumentum by 18.7% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company's stock worth $683,661,000 after acquiring an additional 291,591 shares in the last quarter. Geode Capital Management LLC grew its position in Lumentum by 9.6% in the fourth quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company's stock worth $521,563,000 after acquiring an additional 123,265 shares in the last quarter. Situational Awareness LP grew its position in Lumentum by 210.9% in the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company's stock worth $478,577,000 after acquiring an additional 880,800 shares in the last quarter. Finally, Norges Bank bought a new stake in Lumentum in the fourth quarter worth approximately $474,495,000. Institutional investors and hedge funds own 94.05% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have commented on LITE. Jefferies Financial Group reissued a "buy" rating and issued a $1,200.00 target price on shares of Lumentum in a research report on Wednesday, May 6th. UBS Group upped their price objective on shares of Lumentum from $455.00 to $960.00 and gave the stock a "neutral" rating in a report on Wednesday, May 6th. Citigroup upped their price objective on shares of Lumentum from $800.00 to $1,100.00 and gave the stock a "buy" rating in a report on Tuesday, April 21st. Loop Capital upped their target price on shares of Lumentum from $900.00 to $1,400.00 and gave the company a "buy" rating in a research note on Tuesday, May 5th. Finally, B. Riley Financial reiterated a "buy" rating on shares of Lumentum in a research note on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, Lumentum currently has an average rating of "Moderate Buy" and a consensus price target of $1,021.95.

Lumentum Trading Down 8.6%

Shares of LITE stock opened at $875.36 on Wednesday. Lumentum Holdings Inc. has a 52-week low of $83.59 and a 52-week high of $1,085.68. The stock has a market cap of $68.10 billion, a price-to-earnings ratio of 162.10 and a beta of 1.47. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14. The firm has a fifty day moving average of $901.22 and a 200-day moving average of $640.73.

Lumentum (NASDAQ:LITE - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.27 by $0.10. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The company had revenue of $808.40 million during the quarter, compared to analysts' expectations of $810.21 million. During the same quarter in the prior year, the company posted $0.57 EPS. The business's revenue was up 90.1% on a year-over-year basis. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, equities research analysts forecast that Lumentum Holdings Inc. will post 6.49 earnings per share for the current fiscal year.

Key Headlines Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Analysts and market commentary continue to highlight Lumentum as a strong AI infrastructure play, citing expanding margins, improving demand visibility, and growth in optical networking as reasons the stock still has runway. Article Title
• Positive Sentiment: A separate note said Lumentum tops Broadcom as an AI infrastructure stock, pointing to faster near-term upside from AI-driven optical networking demand and margin expansion. Article Title
• Positive Sentiment: Fund commentary from Columbia Threadneedle highlighted Lumentum as a contributor to performance in the first quarter, reinforcing investor interest in the name after its strong operating results. Article Title
• Neutral Sentiment: Lumentum’s chair and CEO are scheduled to participate in a Rome conference on AI, ethics, and governance, which may support visibility but does not appear to be a major near-term business catalyst. Article Title
• Negative Sentiment: Despite the bullish AI narrative, broader market coverage noted Lumentum as one of the day’s weaker movers, suggesting traders may be taking profits after a strong run-up and reacting to valuation concerns. Article Title

Insider Buying and Selling

In other news, Director Brian Lillie sold 11,951 shares of the stock in a transaction on Monday, May 11th. The shares were sold at an average price of $981.64, for a total value of $11,731,579.64. Following the completion of the transaction, the director owned 13,959 shares in the company, valued at approximately $13,702,712.76. This represents a 46.13% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 3,210 shares of the stock in a transaction on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $3,062,179.50. Following the completion of the transaction, the insider owned 81,488 shares of the company's stock, valued at approximately $77,735,477.60. This represents a 3.79% 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. In the last quarter, insiders have sold 41,260 shares of company stock worth $38,859,220. Insiders own 0.43% of the company's stock.

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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