Varma Mutual Pension Insurance Co acquired a new position in Lumentum Holdings Inc. (NASDAQ:LITE – Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 17,100 shares of the technology company’s stock, valued at approximately $14,673,000.
A number of other institutional investors and hedge funds have also bought and sold shares of the stock. Arrowstreet Capital Limited Partnership raised its stake in Lumentum by 18.7% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,854,801 shares of the technology company’s stock valued at $683,661,000 after purchasing an additional 291,591 shares during the last quarter. Geode Capital Management LLC grew its position in Lumentum by 9.6% in the 4th quarter. Geode Capital Management LLC now owns 1,412,213 shares of the technology company’s stock worth $521,563,000 after purchasing an additional 123,265 shares during the last quarter. Situational Awareness LP grew its position in Lumentum by 210.9% in the 4th 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. Norges Bank bought a new position in shares of Lumentum during the 4th quarter worth about $474,495,000. Finally, Value Aligned Research Advisors LLC acquired a new position in shares of Lumentum during the fourth quarter valued at about $432,062,000. Institutional investors own 94.05% of the company’s stock.
Key Lumentum News
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
Lumentum Price Performance
Lumentum (NASDAQ:LITE – Get Free Report) last announced 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 negative net margin of 230.15% and a positive return on equity of 26.34%. The business had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $987.70 million. During the same quarter last year, the company posted $0.88 EPS. The firm’s revenue for the quarter was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Equities research analysts predict that Lumentum Holdings Inc. will post 19.76 earnings per share for the current fiscal year.
Wall Street Analyst Weigh In
Several research firms recently weighed in on LITE. B. Riley Financial reiterated a “buy” rating on shares of Lumentum in a research note on Friday, May 1st. Citic Securities upped their price target on Lumentum from $620.00 to $1,186.00 in a report on Monday, May 11th. Weiss Ratings downgraded Lumentum from a “hold (c-)” rating to a “sell (d-)” rating in a research report on Wednesday. Craig Hallum lifted their price objective on Lumentum from $900.00 to $1,150.00 in a report on Wednesday, May 6th. Finally, Rosenblatt Securities restated a “buy” rating and set a $1,300.00 price objective on shares of Lumentum in a research report on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Lumentum currently has a consensus rating of “Moderate Buy” and a consensus target price of $1,044.67.
View Our Latest Report on LITE
Insider Activity
In other news, SVP Jae Kim sold 1,904 shares of the firm’s stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $827.82, for a total transaction of $1,576,169.28. Following the completion of the sale, the senior vice president owned 42,096 shares of the company’s stock, valued at approximately $34,847,910.72. This trade represents a 4.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible 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. Also, Director Isaac Hosojiro Harris sold 1,416 shares of Lumentum stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $1,000.08, for a total transaction of $1,416,113.28. Following the completion of the transaction, the director owned 6,984 shares of the company’s stock, valued at $6,984,558.72. This trade represents a 16.86% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 16,352 shares of company stock valued at $14,315,562 over the last three months. 0.43% of the stock is owned by corporate 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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