Vanguard Group Inc. Cuts Stake in Lumentum Holdings Inc. $LITE

Key Points

• Vanguard trimmed its position by 1.3%, selling 96,508 shares in Q4 but still holds 7,388,774 shares (about 10.42% of Lumentum), valued at roughly $2.72 billion.
• Wall Street sentiment is bullish: multiple firms raised price targets (as high as $1,100) and the consensus rating is a "Moderate Buy" with an average target of $757.25.
• Despite a strong quarter (EPS $1.67 vs $1.41 estimate, revenue up 65.5% YoY) the stock has been volatile—down 7.9% recently amid an AI/tech pullback and notable insider selling (65,775 shares worth ~$38.85M); institutional ownership is ~94.05%.

Vanguard Group Inc. reduced its position in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 1.3% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 7,388,774 shares of the technology company's stock after selling 96,508 shares during the quarter. Vanguard Group Inc. owned about 10.42% of Lumentum worth $2,723,428,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also bought and sold shares of the company. Veracity Capital LLC grew its holdings in Lumentum by 7.7% in the fourth quarter. Veracity Capital LLC now owns 3,047 shares of the technology company's stock worth $1,123,000 after purchasing an additional 219 shares during the last quarter. Concurrent Investment Advisors LLC purchased a new position in Lumentum in the fourth quarter worth $462,000. Virtus Wealth Solutions LLC purchased a new position in Lumentum in the fourth quarter worth $1,080,000. China Universal Asset Management Co. Ltd. grew its holdings in Lumentum by 34.1% in the fourth quarter. China Universal Asset Management Co. Ltd. now owns 11,399 shares of the technology company's stock worth $4,202,000 after purchasing an additional 2,899 shares during the last quarter. Finally, Rakuten Securities Inc. grew its holdings in Lumentum by 4,794.1% in the fourth quarter. Rakuten Securities Inc. now owns 2,496 shares of the technology company's stock worth $920,000 after purchasing an additional 2,445 shares during the last quarter. 94.05% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

LITE has been the subject of several research reports. Stifel Nicolaus lifted their price objective on shares of Lumentum to $800.00 and gave the stock a "buy" rating in a research note on Monday, March 2nd. B. Riley Financial upgraded shares of Lumentum from a "neutral" rating to a "buy" rating and lifted their price objective for the stock from $147.00 to $526.00 in a research note on Wednesday, February 4th. Susquehanna lifted their price objective on shares of Lumentum from $550.00 to $1,100.00 and gave the stock a "positive" rating in a research note on Monday, April 20th. Bank of America lifted their price objective on shares of Lumentum to $520.00 and gave the stock a "neutral" rating in a research note on Wednesday, February 4th. Finally, Morgan Stanley lifted their price objective on shares of Lumentum from $595.00 to $710.00 and gave the stock an "equal weight" rating in a research note on Monday, April 20th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, Lumentum presently has a consensus rating of "Moderate Buy" and an average target price of $757.25.

Lumentum News Roundup

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Northland raised its price target to $1,000 (from $775) and kept an Outperform rating, citing accelerating demand for AI optical connectivity and higher supplier estimates — a clear vote of confidence for Lumentum’s growth trajectory. Northland Raises its Price Target on Lumentum (LITE) to $1,000
• Positive Sentiment: Investor commentary (Seeking Alpha) argues the company’s lasers and transceivers remain central to 1.6T/3.2T data-center builds and that strong fundamentals could support further upside despite the recent run-up. Lumentum Stock: Why I'm Buying In After A 1300% Run-Up
• Positive Sentiment: Institutional accumulation data show large buyers (e.g., FMR, UBS) adding significant positions in recent quarters, which supports demand for shares from long-term holders. (Data reported alongside market-coverage articles.) Lumentum slides as AI/tech selloff and pre-earnings positioning hit highfliers
• Neutral Sentiment: Zacks and other previews highlight strong demand for 1.6T transceivers driving revenue upside, but note rising competition and valuation questions — important context for earnings but mixed for immediate price action. Lumentum Gains From Traction in Transceivers: What's Ahead?
• Neutral Sentiment: Multiple previews note an upcoming earnings report (May 5 after the close) where Street expects EPS growth — this creates event risk (volatility) but also a potential catalyst for further moves depending on results. Lumentum (LITE) Reports Next Week: Wall Street Expects Earnings Growth
• Negative Sentiment: A sharp pullback on April 28 was driven by a broader AI/tech selloff and pre-earnings de-risking; the stock’s large YTD gains make it vulnerable to profit-taking. Lumentum slides as AI/tech selloff and pre-earnings positioning hit highfliers
• Negative Sentiment: Quiver highlights extensive insider selling (multiple executives selling shares over months), which may concern some investors even as insiders can sell for many reasons. Lumentum slides as AI/tech selloff and pre-earnings positioning hit highfliers

Insider Buying and Selling at Lumentum

In related news, Director Penny Herscher sold 4,849 shares of the business's stock in a transaction on Friday, February 6th. The shares were sold at an average price of $535.48, for a total transaction of $2,596,542.52. Following the completion of the transaction, the director directly owned 6,057 shares in the company, valued at $3,243,402.36. The trade was a 44.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Yuen Wupen sold 3,157 shares of the business's stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $538.00, for a total transaction of $1,698,466.00. Following the transaction, the insider owned 88,439 shares of the company's stock, valued at $47,580,182. This represents a 3.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 65,775 shares of company stock valued at $38,851,343. Company insiders own 0.43% of the company's stock.

Lumentum Trading Down 7.9%

NASDAQ:LITE opened at $791.37 on Wednesday. The company has a market capitalization of $56.50 billion, a P/E ratio of 242.75 and a beta of 1.38. The firm has a fifty day simple moving average of $749.51 and a 200-day simple moving average of $476.24. Lumentum Holdings Inc. has a 12 month low of $56.80 and a 12 month high of $960.00. The company has a current ratio of 0.61, a quick ratio of 0.45 and a debt-to-equity ratio of 0.06.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its earnings results on Tuesday, February 3rd. The technology company reported $1.67 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.41 by $0.26. The company had revenue of $665.50 million during the quarter, compared to the consensus estimate of $646.74 million. Lumentum had a net margin of 11.95% and a return on equity of 17.27%. The firm's quarterly revenue was up 65.5% on a year-over-year basis. During the same period in the previous year, the firm posted $0.42 earnings per share. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. On average, equities research analysts anticipate that Lumentum Holdings Inc. will post 5.87 earnings per share for the current year.

Lumentum 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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