Thoroughbred Financial Services LLC Acquires New Shares in Lumentum Holdings Inc. $LITE

Key Points

• Thoroughbred Financial Services disclosed a new fourth-quarter stake in Lumentum Holdings, buying 5,189 shares worth about $1.91 million.
• Institutional ownership in Lumentum remains very heavy, with several large funds sharply increasing their positions; the article says 94.05% of the stock is held by institutions and hedge funds.
• Lumentum reported strong quarterly results, posting $2.37 EPS versus the $2.27 consensus and 90.1% year-over-year revenue growth, while analysts have a Moderate Buy consensus and an average price target of about $1,012.43.

Thoroughbred Financial Services LLC acquired a new stake in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) during the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm acquired 5,189 shares of the technology company's stock, valued at approximately $1,912,000.

Several other large investors have also bought and sold shares of LITE. Arrowstreet Capital Limited Partnership boosted its stake 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 buying an additional 1,545,199 shares in the last quarter. Assenagon Asset Management S.A. grew its stake in shares of Lumentum by 707.0% during the fourth quarter. Assenagon Asset Management S.A. now owns 994,478 shares of the technology company's stock worth $366,555,000 after buying an additional 871,249 shares during the last quarter. Holocene Advisors LP bought a new stake in shares of Lumentum during the third quarter worth $136,401,000. WT Asset Management Ltd grew its stake in shares of Lumentum by 170.0% during the third quarter. WT Asset Management Ltd now owns 710,208 shares of the technology company's stock worth $115,558,000 after buying an additional 447,208 shares during the last quarter. Finally, Federated Hermes Inc. grew its stake in shares of Lumentum by 7,168.8% during the third quarter. Federated Hermes Inc. now owns 362,352 shares of the technology company's stock worth $58,958,000 after buying an additional 357,367 shares during the last quarter. 94.05% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In related news, Director Ian Small sold 4,954 shares of the business's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $868.07, for a total value of $4,300,418.78. Following the transaction, the director owned 21,008 shares in the company, valued at $18,236,414.56. The trade was a 19.08% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Wajid Ali sold 2,487 shares of the business's stock in a transaction 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 completion of the transaction, the chief financial officer owned 60,951 shares in the company, valued at approximately $58,144,206.45. The trade was a 3.92% 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 have sold 35,844 shares of company stock valued at $34,003,107 over the last quarter. Company insiders own 0.43% of the company's stock.

Lumentum Price Performance

Lumentum stock opened at $860.62 on Friday. The stock's 50 day moving average is $859.32 and its 200 day moving average is $581.72. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.14 and a quick ratio of 0.97. The firm has a market cap of $66.96 billion, a P/E ratio of 159.37 and a beta of 1.53. Lumentum Holdings Inc. has a one year low of $71.04 and a one year high of $1,085.68.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, topping analysts' consensus estimates of $2.27 by $0.10. The company had revenue of $808.40 million for the quarter, compared to analyst estimates of $810.21 million. Lumentum had a return on equity of 24.81% and a net margin of 17.61%.The firm's quarterly revenue was up 90.1% on a year-over-year basis. During the same period in the previous 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 expect that Lumentum Holdings Inc. will post 6.49 EPS for the current year.

Analysts Set New Price Targets

A number of analysts have weighed in on LITE shares. Bank of America boosted their target price on shares of Lumentum to $520.00 and gave the stock a "neutral" rating in a research note on Wednesday, February 4th. Needham & Company LLC boosted their target price on shares of Lumentum from $880.00 to $1,040.00 and gave the stock a "buy" rating in a research note on Tuesday, April 21st. Rosenblatt Securities lifted their price target on Lumentum from $900.00 to $1,300.00 and gave the company a "buy" rating in a research note on Wednesday, May 6th. JPMorgan Chase & Co. lifted their price target on Lumentum from $950.00 to $1,130.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Finally, UBS Group lifted their price target on Lumentum from $455.00 to $960.00 and gave the company a "neutral" rating in a research note on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, Lumentum currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,012.43.

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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