Tairen Capital Ltd Takes Position in Lumentum Holdings Inc. $LITE

Key Points

• Tairen Capital acquired 106,960 Lumentum shares worth approximately $91.8 million, making Lumentum its third-largest portfolio holding and representing about 0.14% of the company.
• Lumentum reported quarterly EPS of $3.23, exceeding the $2.97 analyst estimate, while revenue rose 109.3% year over year to $1.01 billion. The company issued first-quarter fiscal 2027 EPS guidance of $4.05–$4.35.
• Analysts maintain a broadly positive outlook, with a consensus “Moderate Buy” rating and $1,044.67 price target, though valuation concerns remain after the stock’s sharp rally and its negative net margin.

Tairen Capital Ltd acquired a new stake in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm acquired 106,960 shares of the technology company's stock, valued at approximately $91,778,000. Lumentum makes up 8.1% of Tairen Capital Ltd's portfolio, making the stock its 3rd biggest position. Tairen Capital Ltd owned approximately 0.14% of Lumentum at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of the company. Arrowstreet Capital Limited Partnership raised its position in Lumentum by 8,579.2% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company's stock valued at $254,350,000 after purchasing an additional 1,545,199 shares during the last quarter. Norges Bank acquired a new stake in shares of Lumentum during the fourth quarter valued at about $474,495,000. Value Aligned Research Advisors LLC bought a new stake in shares of Lumentum during the fourth quarter worth about $432,062,000. Situational Awareness LP grew its holdings in shares of Lumentum by 210.9% during the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company's stock worth $478,577,000 after purchasing an additional 880,800 shares during the last quarter. Finally, Aspex Management HK Ltd acquired a new position in shares of Lumentum in the fourth quarter valued at approximately $251,363,000. Institutional investors own 94.05% of the company's stock.

Insider Activity

In other Lumentum news, insider Yuen Wupen sold 1,500 shares of the company's stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $827.82, for a total transaction of $1,241,730.00. Following the sale, the insider owned 100,434 shares of the company's stock, valued at approximately $83,141,273.88. This represents a 1.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 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. Also, Director Isaac Hosojiro Harris sold 4,000 shares of the firm's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $860.00, for a total value of $3,440,000.00. Following the sale, the director directly owned 8,400 shares of the company's stock, valued at $7,224,000. This represents a 32.26% 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. Insiders sold 16,352 shares of company stock worth $14,315,562 over the last ninety days. Corporate insiders own 0.43% of the company's stock.

Lumentum Stock Performance

Shares of LITE stock opened at $866.71 on Monday. The business's 50 day simple moving average is $809.76 and its 200 day simple moving average is $792.80. Lumentum Holdings Inc. has a one year low of $115.89 and a one year high of $1,085.68. The stock has a market capitalization of $77.74 billion, a PE ratio of -10.54 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.

Lumentum (NASDAQ:LITE - Get Free Report) last released its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, beating analysts' consensus estimates of $2.97 by $0.26. The business had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The company's revenue for the quarter was up 109.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, research analysts forecast that Lumentum Holdings Inc. will post 19.76 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on LITE. Northland Securities raised their price objective on shares of Lumentum from $1,000.00 to $1,200.00 and gave the company an "outperform" rating in a report on Wednesday, June 3rd. Morgan Stanley boosted their target price on shares of Lumentum from $900.00 to $1,000.00 and gave the stock an "equal weight" rating in a report on Wednesday, August 12th. Barclays raised their price target 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. Loop Capital lifted their price target on shares of Lumentum from $900.00 to $1,400.00 and gave the stock a "buy" rating in a report on Tuesday, May 5th. Finally, Weiss Ratings cut shares of Lumentum from a "hold (c-)" rating to a "sell (d-)" rating in a research note on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $1,044.67.

More Lumentum News

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Northland Securities raised its Lumentum earnings forecasts substantially. The firm lifted its FY2027 EPS estimate to $19.81 from $14.97, with quarterly estimates now ranging from $3.81 in Q1 to $6.20 in Q4. Northland maintained an “Outperform” rating and a $1,200 price target, supporting the bullish case for continued earnings growth. Northland Securities analyst estimate report
• Positive Sentiment: Lumentum is being highlighted as an AI-infrastructure beneficiary. Analysts and financial publications point to rising demand for optical networking equipment as data centers expand to support artificial intelligence workloads. Lumentum is positioned across the optics and networking portions of that buildout. Beyond Chipmakers: 4 Stocks to Buy That Power AI Data Center Expansion
• Positive Sentiment: LITE was added to Zacks’ Rank #1 momentum-stock list. The designation may attract momentum-oriented investors and reinforces the stock’s strong recent performance. Best Momentum Stocks to Buy for August 21st
• Neutral Sentiment: A report on data-center construction emphasized the enormous fiber requirements of new AI facilities, a potential long-term demand driver for optical-component suppliers such as Lumentum. However, the article provided limited company-specific financial updates. A Single Meta Data Center Will Require “8 Million Miles of Fiber”
• Negative Sentiment: Valuation concerns could be limiting further upside. A Seeking Alpha analysis characterized Lumentum as increasingly expensive after its sharp rally. With the shares near their 52-week high and the company still reporting a negative net margin, some investors may be taking profits despite the favorable growth outlook. Lumentum: It’s Getting Expensive

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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