Watershed Asset Management L.L.C. Has $1.55 Million Holdings in Lumentum Holdings Inc. $LITE

Key Points

• Watershed Asset Management cut its Lumentum stake by 45% in the first quarter, selling 1,800 shares and leaving it with 2,200 shares valued at about $1.55 million.
• Lumentum beat earnings expectations in its latest quarter, reporting $2.37 EPS versus the $2.27 estimate, while revenue jumped 90.1% year over year to $808.4 million.
• Analysts remain broadly constructive on the stock, with a Moderate Buy consensus and an average price target of about $1,012.67, even as some firms like UBS keep a Hold rating.

Watershed Asset Management L.L.C. decreased its stake in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 45.0% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 2,200 shares of the technology company's stock after selling 1,800 shares during the period. Lumentum makes up about 1.6% of Watershed Asset Management L.L.C.'s investment portfolio, making the stock its 18th largest holding. Watershed Asset Management L.L.C.'s holdings in Lumentum were worth $1,546,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Hilton Head Capital Partners LLC acquired a new position in Lumentum in the 1st quarter worth $25,000. Sachetta LLC increased its holdings in Lumentum by 118.8% during the 1st quarter. Sachetta LLC now owns 35 shares of the technology company's stock worth $25,000 after purchasing an additional 19 shares in the last quarter. V Square Quantitative Management LLC acquired a new stake in shares of Lumentum in the 4th quarter valued at about $28,000. Truvestments Capital LLC raised its stake in shares of Lumentum by 300.0% in the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company's stock valued at $28,000 after purchasing an additional 57 shares during the period. Finally, Triumph Capital Management bought a new stake in shares of Lumentum in the fourth quarter valued at about $30,000. 94.05% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Analysts highlighted Lumentum’s record laser-chip shipments and capacity expansion, suggesting the company is well positioned to benefit from surging AI networking demand. Can Lumentum's AI Laser Chip Demand Accelerate Revenue Growth?
• Positive Sentiment: Lumentum was upgraded to Zacks Rank #2 (Buy) after earnings estimates were raised, which signals improving sentiment around near-term earnings prospects. Lumentum (LITE) Upgraded to Buy: What Does It Mean for the Stock?
• Positive Sentiment: Coverage comparing Lumentum with Applied Digital favored Lumentum’s stronger execution, AI-driven growth, and lower valuation, reinforcing the stock’s appeal to growth investors. LITE vs. APLD: Which AI Infrastructure Stock Offers Better Growth?
• Neutral Sentiment: UBS reaffirmed its Hold rating, which may temper enthusiasm even as the broader AI-demand story remains constructive. UBS Reaffirms Their Hold Rating on Lumentum Holdings (LITE)
• Neutral Sentiment: Citi’s addition of Lumentum to a 90-day catalyst watch suggests traders are watching for near-term catalysts, but it does not by itself change the fundamental outlook. Lumentum in focus as Citi adds 90-day catalyst watch
• Negative Sentiment: Some articles point to valuation and analyst-watch attention rather than confirmed new financial results, so the stock could be vulnerable if AI demand growth or execution does not continue to meet high expectations.

Wall Street Analyst Weigh In

LITE has been the subject of several recent research reports. Raymond James Financial reaffirmed an "outperform" rating and set a $1,014.00 price objective on shares of Lumentum in a research report on Wednesday, May 6th. Citigroup reissued a "buy" rating on shares of Lumentum in a research report on Thursday. TD Cowen cut their target price on Lumentum from $995.00 to $800.00 and set a "hold" rating on the stock in a research note on Monday. Susquehanna upped their price target on Lumentum from $550.00 to $1,100.00 and gave the stock a "positive" rating in a research report on Monday, April 20th. Finally, Barclays lifted their price objective on shares of Lumentum from $750.00 to $1,000.00 and gave the company an "equal weight" rating in a 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. Based on data from MarketBeat, Lumentum has a consensus rating of "Moderate Buy" and an average target price of $1,012.67.

Lumentum Trading Up 3.8%

Shares of Lumentum stock opened at $732.82 on Friday. Lumentum Holdings Inc. has a 12-month low of $97.55 and a 12-month high of $1,085.68. The stock has a market cap of $57.01 billion, a P/E ratio of 135.71 and a beta of 1.48. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 0.01. The business's 50 day moving average is $865.06 and its 200-day moving average is $710.76.

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

Insider Transactions at Lumentum

In other news, insider Vincent Retort sold 3,183 shares of the business's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $3,036,422.85. Following the transaction, the insider directly owned 89,563 shares in the company, valued at $85,438,623.85. The trade was a 3.43% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 Ian Small sold 4,954 shares of the company's stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $868.07, for a total transaction of $4,300,418.78. Following the completion of the sale, the director directly owned 21,008 shares in the company, valued at approximately $18,236,414.56. The trade was a 19.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 41,260 shares of company stock valued at $38,859,220. 0.43% of the stock is owned by company insiders.

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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