Zurcher Kantonalbank Zurich Cantonalbank Lowers Stock Position in Lumentum Holdings Inc. $LITE

Key Points

• Zurcher Kantonalbank cut its stake in Lumentum by 98.2% in Q4, selling 1,200,532 shares and leaving 22,076 shares worth $8.14 million.
• Lumentum reported an EPS beat ($1.67 vs. $1.41) and revenue up 65.5% year-over-year, says it is "sold out through 2027," and has prompted multiple analyst price-target increases (Needham $1,040; JPMorgan $950).
• Offsetting risks include significant insider sales (65,775 shares worth about $38.9 million in the last three months), a Seeking Alpha note on a potential "hidden liquidity risk," and new inverse ETFs that could raise short pressure and volatility.

Zurcher Kantonalbank Zurich Cantonalbank reduced its stake in Lumentum Holdings Inc. (NASDAQ:LITE - Free Report) by 98.2% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 22,076 shares of the technology company's stock after selling 1,200,532 shares during the quarter. Zurcher Kantonalbank Zurich Cantonalbank's holdings in Lumentum were worth $8,137,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds have also bought and sold shares of the company. EverSource Wealth Advisors LLC raised its stake in shares of Lumentum by 363.9% during the third quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company's stock worth $27,000 after acquiring an additional 131 shares in the last quarter. V Square Quantitative Management LLC bought a new position in shares of Lumentum during the 4th quarter valued at $28,000. Danske Bank A S bought a new position in shares of Lumentum during the 3rd quarter valued at $33,000. Chesapeake Asset Management LLC bought a new position in shares of Lumentum during the 4th quarter valued at $37,000. Finally, BOCHK Asset Management Ltd bought a new position in shares of Lumentum during the 4th quarter valued at $37,000. 94.05% of the stock is owned by hedge funds and other institutional investors.

Lumentum Stock Down 3.1%

Shares of NASDAQ LITE opened at $846.89 on Friday. The company has a quick ratio of 0.45, a current ratio of 0.61 and a debt-to-equity ratio of 0.06. Lumentum Holdings Inc. has a 52 week low of $55.00 and a 52 week high of $960.00. The firm's fifty day moving average is $733.38 and its 200 day moving average is $457.53. The company has a market cap of $60.47 billion, a price-to-earnings ratio of 259.78 and a beta of 1.38.

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

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Needham raised its price target to $1,040, a clear signal of stronger upside expectations from a sell-side shop and a likely contributor to buying interest. Needham & Company LLC Boosts Lumentum NASDAQ: LITE Price Target to $1,040.00
• Positive Sentiment: Northland Securities materially raised FY2027 EPS estimates (to $14.59 from $10.69) and published updated quarterly forecasts — this repricing of future earnings lifts investor expectations and supports the rally. Northland Securities Comments on Lumentum Q1 Earnings
• Positive Sentiment: Management and coverage note that demand is extremely strong — Lumentum says it's sold out through 2027, underscoring capacity constraints and multi-year revenue visibility that traders view as a major tailwind. ​Lumentum Holdings (LITE) Sold Out Through 2027 on High Demand
• Positive Sentiment: Coverage is shifting to AI networking optics and large customer commitments (including Nvidia-related demand), reframing Lumentum from telecom cyclical to AI-driven growth, which supports higher valuations. How The Lumentum Holdings (LITE) Story Is Shifting With AI Optics And Nvidia Commitments
• Neutral Sentiment: Media noted an immediate market reaction — Lumentum traded notably higher after analyst upgrades — this reflects sentiment momentum but not new fundamental data by itself. Lumentum NASDAQ: LITE Trading 4.4% Higher After Analyst Upgrade
• Negative Sentiment: A Seeking Alpha piece flags a “hidden liquidity risk” in the footnotes — investors should read the analysis to assess whether contingent liabilities or financing language could create downside surprises. Lumentum: A Hidden Liquidity Risk Buried In The Footnotes
• Negative Sentiment: Tradr launched 2x inverse and inverse single-stock ETFs on LITE (and Sandisk); these products make it easier for traders to express bearish bets and can increase intraday volatility and short pressure. Tradr Debuts Short ETFs on Lumentum and Sandisk

Wall Street Analyst Weigh In

Several research firms recently commented on LITE. UBS Group increased their target price on shares of Lumentum from $215.00 to $455.00 and gave the company a "neutral" rating in a report on Wednesday, February 4th. JPMorgan Chase & Co. increased their target price on shares of Lumentum to $950.00 and gave the company an "overweight" rating in a report on Thursday, April 9th. Needham & Company LLC increased their target price on shares of Lumentum from $880.00 to $1,040.00 and gave the company a "buy" rating in a report on Tuesday. Stifel Nicolaus increased their target price on shares of Lumentum to $800.00 and gave the company a "buy" rating in a report on Monday, March 2nd. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Lumentum in a report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, Lumentum has an average rating of "Moderate Buy" and an average target price of $757.25.

Insider Activity

In related news, insider Yuen Wupen sold 3,157 shares of Lumentum stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $538.00, for a total value of $1,698,466.00. Following the transaction, the insider directly owned 88,439 shares of the company's stock, valued at $47,580,182. The trade was a 3.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Wajid Ali sold 5,302 shares of Lumentum stock in a transaction on Friday, February 27th. The stock was sold at an average price of $691.13, for a total transaction of $3,664,371.26. Following the completion of the transaction, the chief financial officer directly owned 66,287 shares in the company, valued at approximately $45,812,934.31. The trade was a 7.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 65,775 shares of company stock valued at $38,851,343 in the last three months. Corporate insiders own 0.43% of the company's stock.

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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