Insider Selling: Lumentum (NASDAQ:LITE) Insider Sells $2,055,477.06 in Stock

Key Points

• Lumentum insider Vincent Retort sold 2,483 shares for approximately $2.06 million at an average price of $827.82, reducing his holdings by 2.22%. The transaction was conducted under a Rule 10b5-1 plan to cover tax withholding on vested equity awards.
• Lumentum reported strong quarterly results, with EPS of $3.23 beating estimates and revenue rising 109.3% year over year to $1.01 billion. The company issued Q1 2027 EPS guidance of $4.05–$4.35.
• Shares traded around $866.71, while analysts maintained a generally favorable outlook with a “Moderate Buy” consensus and an average price target of $1,044.67; however, valuation concerns remain after the stock’s sharp rally and negative net margin.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) insider Vincent Retort sold 2,483 shares of Lumentum stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $827.82, for a total value of $2,055,477.06. Following the sale, the insider directly owned 109,438 shares of the company's stock, valued at approximately $90,594,965.16. This trade represents a 2.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through 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.

Vincent Retort also recently made the following trade(s):

• On Tuesday, August 18th, Vincent Retort sold 3,183 shares of Lumentum stock. The stock was sold at an average price of $909.43, for a total transaction of $2,894,715.69.

Lumentum Trading Down 1.4%

Shares of NASDAQ LITE traded down $12.57 during midday trading on Friday, reaching $866.71. 3,660,169 shares of the stock were exchanged, compared to its average volume of 5,335,184. Lumentum Holdings Inc. has a 12 month low of $115.89 and a 12 month high of $1,085.68. The company has a market capitalization of $77.74 billion, a price-to-earnings ratio of -10.54 and a beta of 1.50. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.68 and a quick ratio of 1.40. The business has a 50-day simple moving average of $809.76 and a two-hundred day simple moving average of $790.21.

Lumentum (NASDAQ:LITE - Get Free Report) last posted its earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.97 by $0.26. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%.The business had revenue of $1.01 billion during the quarter, compared to analysts' expectations of $987.70 million. During the same period in the prior year, the business earned $0.88 EPS. Lumentum's revenue for the quarter was up 109.3% compared to the same quarter last year. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. As a group, equities research analysts expect that Lumentum Holdings Inc. will post 19.76 EPS for the current year.

Institutional Investors Weigh In On Lumentum

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Jupiter Topco LLC acquired a new stake in shares of Lumentum in the 2nd quarter worth about $1,621,396,000. Arrowstreet Capital Limited Partnership boosted its stake in 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 purchasing an additional 1,545,199 shares during the last quarter. Norges Bank bought a new stake in Lumentum during the 4th quarter worth approximately $474,495,000. Value Aligned Research Advisors LLC purchased a new stake in shares of Lumentum in the fourth quarter worth approximately $432,062,000. Finally, Situational Awareness LP raised its stake in shares of Lumentum by 210.9% in the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company's stock worth $478,577,000 after purchasing an additional 880,800 shares during the last quarter. 94.05% of the stock is owned by institutional investors.

Key Stories Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Northland Securities raised its Lumentum earnings forecasts substantially. The firm lifted its FY2027 EPS estimate to $19.81 from $14.97, with quarterly estimates now ranging from $3.81 in Q1 to $6.20 in Q4. Northland maintained an “Outperform” rating and a $1,200 price target, supporting the bullish case for continued earnings growth. Northland Securities analyst estimate report
• Positive Sentiment: Lumentum is being highlighted as an AI-infrastructure beneficiary. Analysts and financial publications point to rising demand for optical networking equipment as data centers expand to support artificial intelligence workloads. Lumentum is positioned across the optics and networking portions of that buildout. Beyond Chipmakers: 4 Stocks to Buy That Power AI Data Center Expansion
• Positive Sentiment: LITE was added to Zacks’ Rank #1 momentum-stock list. The designation may attract momentum-oriented investors and reinforces the stock’s strong recent performance. Best Momentum Stocks to Buy for August 21st
• Neutral Sentiment: A report on data-center construction emphasized the enormous fiber requirements of new AI facilities, a potential long-term demand driver for optical-component suppliers such as Lumentum. However, the article provided limited company-specific financial updates. A Single Meta Data Center Will Require “8 Million Miles of Fiber”
• Negative Sentiment: Valuation concerns could be limiting further upside. A Seeking Alpha analysis characterized Lumentum as increasingly expensive after its sharp rally. With the shares near their 52-week high and the company still reporting a negative net margin, some investors may be taking profits despite the favorable growth outlook. Lumentum: It’s Getting Expensive

Wall Street Analysts Forecast Growth

A number of research firms have commented on LITE. Bank of America reduced their price objective on shares of Lumentum from $1,100.00 to $1,000.00 and set a "neutral" rating for the company in a research report on Wednesday, August 12th. Zacks Research downgraded Lumentum from a "strong-buy" rating to a "hold" rating in a report on Monday, July 6th. UBS Group set a $820.00 target price on shares of Lumentum in a research report on Wednesday, August 12th. Mizuho upped their price target on shares of Lumentum from $1,100.00 to $1,140.00 and gave the company an "outperform" rating in a research note on Wednesday, August 12th. Finally, JPMorgan Chase & Co. raised their price target on shares of Lumentum from $1,165.00 to $1,280.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 12th. Thirteen equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Lumentum has an average rating of "Moderate Buy" and a consensus price target of $1,044.67.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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