William Blair Investment Management LLC Lowers Stock Position in Lumentum Holdings Inc. $LITE

Key Points

• William Blair Investment Management reduced its Lumentum stake by 49% in the fourth quarter, selling 134,421 shares and leaving the firm with 139,703 shares worth about $51.5 million.
• Institutional demand remains strong overall: several other hedge funds and asset managers sharply increased or initiated positions, and about 94% of Lumentum’s shares are held by institutional investors.
• Analyst sentiment and recent results are bullish, with multiple firms lifting price targets and Lumentum reporting Q3 earnings of $2.37 per share on 90.1% revenue growth year over year, while also guiding Q4 2026 EPS to $2.85-$3.05.

William Blair Investment Management LLC cut its stake in shares of Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 49.0% in the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 139,703 shares of the technology company's stock after selling 134,421 shares during the period. William Blair Investment Management LLC owned 0.20% of Lumentum worth $51,493,000 as of its most recent SEC filing.

Several other institutional investors also recently made changes to their positions in LITE. Arrowstreet Capital Limited Partnership grew its stake in shares of Lumentum by 8,579.2% during the 3rd 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 during the period. Assenagon Asset Management S.A. grew its stake in shares of Lumentum by 707.0% during the 4th quarter. Assenagon Asset Management S.A. now owns 994,478 shares of the technology company's stock valued at $366,555,000 after buying an additional 871,249 shares during the period. Holocene Advisors LP purchased a new stake in shares of Lumentum during the 3rd quarter valued at $136,401,000. WT Asset Management Ltd boosted its position in Lumentum by 170.0% during the 3rd quarter. WT Asset Management Ltd now owns 710,208 shares of the technology company's stock worth $115,558,000 after purchasing an additional 447,208 shares during the period. Finally, Federated Hermes Inc. boosted its position in Lumentum by 7,168.8% during the 3rd quarter. Federated Hermes Inc. now owns 362,352 shares of the technology company's stock worth $58,958,000 after purchasing an additional 357,367 shares during the period. 94.05% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Craig Hallum upped their price target on shares of Lumentum from $900.00 to $1,150.00 in a research report on Wednesday, May 6th. JPMorgan Chase & Co. upped their price target on shares of Lumentum from $950.00 to $1,130.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Bank of America upped their price target on shares of Lumentum to $520.00 and gave the stock a "neutral" rating in a research report on Wednesday, February 4th. Susquehanna upped their price target on shares of Lumentum from $550.00 to $1,100.00 and gave the stock a "positive" rating in a research report on Monday, April 20th. Finally, Rosenblatt Securities upped their price target on shares of Lumentum from $900.00 to $1,300.00 and gave the stock a "buy" rating in a research report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $1,012.43.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Articles argue that Nvidia’s results reinforce the scarcity and importance of AI networking hardware, which could support continued demand for Lumentum’s optical components. Lumentum: Market Is Missing What Nvidia's Q1 Just Confirmed
• Positive Sentiment: Coverage says Lumentum’s AI connectivity portfolio is expanding and hyperscaler demand is driving record revenues and rapid growth in optical connectivity shipments. Lumentum's AI Connectivity Portfolio Expands: Is Growth Durable?
• Positive Sentiment: Analysts and market commentary describe Lumentum’s earnings as confirming an “AI scarcity advantage,” suggesting the company may be well positioned to benefit from tight supply and strong demand. Lumentum's Earnings Confirm AI Scarcity Advantage
• Positive Sentiment: Lumentum’s addition to the Nasdaq-100 is increasing visibility and could bring more institutional and ETF-related demand for the shares. Does Lumentum (LITE) Joining the Nasdaq-100 Recast Its AI Infrastructure Investment Narrative?
• Neutral Sentiment: REX Shares launched a 2x leveraged ETF tied to Lumentum, which may boost trading interest but does not change the company’s fundamentals. REX Shares Launches T-REX 2X ASTS (ASUP) & 2X LITE (LITU) ETFs
• Neutral Sentiment: Several insider sale filings were reported, but the trades were relatively small and do not appear to be a major driver of the stock move. Yuen Wupen Sells 3,210 Shares of Lumentum NASDAQ: LITE Stock

Lumentum Stock Performance

Shares of LITE stock opened at $946.90 on Monday. Lumentum Holdings Inc. has a 12 month low of $71.04 and a 12 month high of $1,085.68. 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 capitalization of $73.67 billion, a P/E ratio of 175.35 and a beta of 1.53. The company's fifty day moving average price is $837.17 and its two-hundred day moving average price is $562.57.

Lumentum (NASDAQ:LITE - Get Free Report) last issued 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. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The firm had revenue of $808.40 million for the quarter, compared to analyst estimates of $810.21 million. During the same quarter in the previous year, the business posted $0.57 EPS. The firm's revenue was up 90.1% compared to the same quarter last year. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, research analysts anticipate that Lumentum Holdings Inc. will post 6.49 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, SVP Jae Kim sold 1,422 shares of the company's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $953.95, for a total value of $1,356,516.90. Following the sale, the senior vice president owned 32,333 shares in the company, valued at approximately $30,844,065.35. This represents a 4.21% decrease in their position. The sale was disclosed in a document filed 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, insider Yuen Wupen sold 3,210 shares of the company'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 $3,062,179.50. Following the completion of the sale, the insider owned 81,488 shares in the company, valued at approximately $77,735,477.60. This trade represents a 3.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. In the last quarter, insiders have sold 41,146 shares of company stock worth $37,667,478. Company insiders own 0.43% of the company's stock.

Lumentum Company 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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