Teachers Retirement System of The State of Kentucky Decreases Stake in Lumentum Holdings Inc. $LITE

Key Points

• Teachers Retirement System of The State of Kentucky cut its Lumentum stake by 75.2% in the first quarter, selling 16,790 shares and ending with 5,550 shares valued at about $3.9 million.
• Wall Street sentiment remains bullish: several analysts raised price targets sharply, and Lumentum now has a consensus Moderate Buy rating with an average target of $1,012.67.
• Fundamentals and outlook stay strong, with Lumentum reporting better-than-expected quarterly EPS, 90.1% revenue growth year over year, and guidance for Q4 2026 EPS of 2.85 to 3.05 amid continued optimism around AI-driven optical networking demand.

Teachers Retirement System of The State of Kentucky lessened its holdings in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 75.2% during the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 5,550 shares of the technology company's stock after selling 16,790 shares during the period. Teachers Retirement System of The State of Kentucky's holdings in Lumentum were worth $3,900,000 at the end of the most recent reporting period.

Other institutional investors also recently modified their holdings of the company. Arrowstreet Capital Limited Partnership lifted its holdings in Lumentum by 18.7% during 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 during the period. Geode Capital Management LLC grew its stake in Lumentum by 9.6% in the 4th quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company's stock valued at $521,563,000 after purchasing an additional 123,265 shares during the period. Situational Awareness LP grew its stake in Lumentum by 210.9% in the 4th quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company's stock valued at $478,577,000 after purchasing an additional 880,800 shares during the period. Norges Bank purchased a new stake in shares of Lumentum during the 4th quarter valued at $474,495,000. Finally, Value Aligned Research Advisors LLC purchased a new stake in shares of Lumentum during the 4th quarter valued at $432,062,000. 94.05% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on LITE shares. Loop Capital boosted 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. Rosenblatt Securities raised their price objective on shares of Lumentum from $900.00 to $1,300.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. Stifel Nicolaus lifted their price objective on shares of Lumentum from $800.00 to $1,100.00 and gave the stock a "buy" rating in a research report on Tuesday, May 5th. Weiss Ratings reiterated a "hold (c)" rating on shares of Lumentum in a research note on Tuesday, April 21st. Finally, Mizuho set a $1,100.00 target price on shares of Lumentum in a research report on Wednesday, May 6th. Fourteen research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat.com, Lumentum currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,012.67.

Key Headlines Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: UBS said rising data-center investment should support demand for companies like Lumentum, reinforcing the AI-optics growth narrative. ANET, CLS, EXTR, LITE stock in focus — UBS sees data center investments to drive demand, but supply constraints persist
• Positive Sentiment: Commentary highlighting Lumentum as an optical company trading like a semiconductor suggests the market is valuing it more like a high-growth AI infrastructure beneficiary. Lumentum: An Optical Company Trading Like A Semiconductor
• Positive Sentiment: Another article framed the recent AI-optical selloff as a buying opportunity, which may be encouraging dip-buying in LITE and peers. The AI Optical Selloff Is A Gift - 3 Stocks I'm Buying
• Positive Sentiment: Reports on Lumentum’s planned fiscal Q4 and full-year 2026 results keep attention on upcoming catalysts, which can support trading interest. Lumentum Announces Reporting Date for Fourth Quarter and Fiscal Year 2026 Results
• Positive Sentiment: Coverage on AI-driven optical networking demand and co-packaged optics adoption points to a favorable longer-term growth story for Lumentum.

Insider Buying and Selling

In related news, CFO Wajid Ali sold 2,487 shares of the company's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $2,372,473.65. Following the sale, the chief financial officer directly owned 60,951 shares in the company, valued at approximately $58,144,206.45. This represents a 3.92% decrease in their position. The sale was disclosed in a 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 1,416 shares of the company's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $1,000.08, for a total transaction of $1,416,113.28. Following the sale, the director owned 6,984 shares in the company, valued at $6,984,558.72. The trade was a 16.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 41,260 shares of company stock valued at $38,859,220. Corporate insiders own 0.43% of the company's stock.

Lumentum Trading Up 6.1%

Shares of LITE opened at $814.80 on Wednesday. The business has a 50-day moving average of $876.03 and a 200 day moving average of $705.88. Lumentum Holdings Inc. has a fifty-two week low of $94.32 and a fifty-two week high of $1,085.68. The firm has a market cap of $63.39 billion, a P/E ratio of 150.89 and a beta of 1.48. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14.

Lumentum (NASDAQ:LITE - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, beating the consensus estimate of $2.27 by $0.10. The business had revenue of $808.40 million for the quarter, compared to the consensus estimate of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The company's revenue was up 90.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. As a group, research analysts forecast that Lumentum Holdings Inc. will post 6.4 EPS for the current year.

About Lumentum

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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