TCW Group Inc. Purchases 4,771 Shares of Lumentum Holdings Inc. (NASDAQ:LITE)

Key Points

• TCW Group Inc. increased its stake in Lumentum Holdings Inc. by 24.6%, purchasing an additional 4,771 shares, bringing its total holdings to 24,148 shares valued at approximately $1.5 million.
• Insiders have sold a total of 67,049 shares within the last 90 days, with CFO Wajid Ali and Director Alan S. Lowe both reducing their positions significantly during that time.
• Analysts have mostly maintained a positive outlook on Lumentum, with a general consensus rating of "Moderate Buy" and an average target price of $87.73, reflecting a recent boost in price targets from several research firms.

TCW Group Inc. lifted its stake in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 24.6% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 24,148 shares of the technology company's stock after buying an additional 4,771 shares during the period. TCW Group Inc.'s holdings in Lumentum were worth $1,505,000 at the end of the most recent reporting period.

Other hedge funds have also modified their holdings of the company. Skandinaviska Enskilda Banken AB publ acquired a new position in shares of Lumentum in the 1st quarter worth approximately $25,000. Rakuten Securities Inc. raised its holdings in shares of Lumentum by 164.4% in the 1st quarter. Rakuten Securities Inc. now owns 476 shares of the technology company's stock worth $30,000 after buying an additional 296 shares in the last quarter. Golden State Wealth Management LLC raised its holdings in shares of Lumentum by 103.2% in the 1st quarter. Golden State Wealth Management LLC now owns 512 shares of the technology company's stock worth $32,000 after buying an additional 260 shares in the last quarter. CoreCap Advisors LLC raised its holdings in shares of Lumentum by 2,235.3% in the 4th quarter. CoreCap Advisors LLC now owns 397 shares of the technology company's stock worth $33,000 after buying an additional 380 shares in the last quarter. Finally, UMB Bank n.a. raised its holdings in shares of Lumentum by 132.9% in the 1st quarter. UMB Bank n.a. now owns 785 shares of the technology company's stock worth $49,000 after buying an additional 448 shares in the last quarter. 94.05% of the stock is owned by institutional investors and hedge funds.

Lumentum Trading Down 3.6%

Shares of NASDAQ:LITE traded down $3.99 during midday trading on Friday, hitting $106.10. The company had a trading volume of 1,395,984 shares, compared to its average volume of 2,501,274. Lumentum Holdings Inc. has a 12 month low of $38.28 and a 12 month high of $114.12. The company has a current ratio of 4.72, a quick ratio of 3.53 and a debt-to-equity ratio of 2.91. The stock has a market cap of $7.36 billion, a price-to-earnings ratio of -16.47 and a beta of 1.34. The firm has a fifty day simple moving average of $90.67 and a 200 day simple moving average of $77.11.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its quarterly earnings results on Tuesday, May 6th. The technology company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.07. Lumentum had a negative return on equity of 8.69% and a negative net margin of 29.87%. The business had revenue of $425.20 million for the quarter, compared to analyst estimates of $418.18 million. During the same period last year, the company earned $0.09 EPS. The firm's revenue was up 16.0% on a year-over-year basis. On average, analysts predict that Lumentum Holdings Inc. will post 0.03 EPS for the current year.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the company. Northland Capmk raised Lumentum from a "hold" rating to a "strong-buy" rating in a report on Monday, April 7th. Barclays set a $75.00 price target on Lumentum and gave the company an "overweight" rating in a report on Wednesday, May 7th. Susquehanna raised their price target on Lumentum from $95.00 to $125.00 and gave the company a "positive" rating in a report on Tuesday, July 22nd. Morgan Stanley raised their price target on Lumentum from $76.00 to $85.00 and gave the company an "equal weight" rating in a report on Tuesday, July 8th. Finally, Needham & Company LLC increased their price objective on Lumentum from $100.00 to $105.00 and gave the company a "buy" rating in a research report on Wednesday, June 11th. One analyst has rated the stock with a sell rating, three have assigned a hold rating, eleven have assigned a buy rating and two have given a strong buy 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 $87.73.

Insider Activity

In other Lumentum news, insider Yuen Wupen sold 4,716 shares of Lumentum stock in a transaction dated Thursday, May 15th. The stock was sold at an average price of $76.87, for a total transaction of $362,518.92. Following the transaction, the insider directly owned 82,957 shares in the company, valued at approximately $6,376,904.59. The trade was a 5.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Jae Kim sold 4,577 shares of Lumentum stock in a transaction dated Friday, May 16th. The stock was sold at an average price of $77.98, for a total value of $356,914.46. Following the transaction, the senior vice president owned 31,534 shares in the company, valued at approximately $2,459,021.32. This represents a 12.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 89,768 shares of company stock valued at $8,294,633. Company insiders own 0.19% of the company's stock.

About Lumentum

Lumentum Holdings Inc manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables.