China Universal Asset Management Co. Ltd. increased its stake in Lumentum Holdings Inc. (NASDAQ:LITE – Free Report) by 23.0% in the third quarter, Holdings Channel.com reports. The institutional investor owned 14,455 shares of the technology company’s stock after purchasing an additional 2,703 shares during the quarter. China Universal Asset Management Co. Ltd.’s holdings in Lumentum were worth $14,061,000 as of its most recent SEC filing.
Other hedge funds have also modified their holdings of the company. Jupiter Topco LLC acquired a new position in Lumentum during the 2nd quarter worth approximately $1,621,396,000. Amundi grew its position in Lumentum by 188.7% in the second quarter. Amundi now owns 658,427 shares of the technology company’s stock valued at $564,970,000 after acquiring an additional 430,355 shares in the last quarter. WT Asset Management Ltd acquired a new stake in Lumentum in the second quarter valued at approximately $494,688,000. Janus Henderson Group PLC grew its position in Lumentum by 163.2% in the first quarter. Janus Henderson Group PLC now owns 567,182 shares of the technology company’s stock valued at $398,590,000 after acquiring an additional 351,676 shares in the last quarter. Finally, Legal & General Group Plc purchased a new stake in shares of Lumentum during the second quarter valued at approximately $376,539,000. 94.05% of the stock is currently owned by hedge funds and other institutional investors.
Key Stories Impacting Lumentum
Here are the key news stories impacting Lumentum this week:
- Positive Sentiment: Potential acquisition premium: Lumentum’s reported status as the target is supporting its shares, with the company’s approximately $83 billion market value putting a substantial takeover premium and possible deal value in focus. Lumentum Stock Rises as Marvell Takeover Talks Put $83 Billion Market Value in Focus
- Positive Sentiment: Strategic value in AI infrastructure: Marvell could gain Lumentum’s optical networking products, indium phosphide laser manufacturing capacity and exposure to rapidly growing data-center demand. Optical connections are becoming increasingly important as AI clusters require faster, higher-capacity links than copper can provide. Marvell in advanced talks to buy Lumentum
- Positive Sentiment: Underlying operating momentum is attracting interest independently of the takeover speculation. Lumentum has reported record cloud-transceiver shipments and is expanding its 1.6T product rollout, benefiting from AI infrastructure investment; its latest reported revenue increased 109% year over year and earnings exceeded expectations. LITE’s Transceivers Gain From AI Infrastructure Demand
- Neutral Sentiment: The reported transaction could strengthen the relationship between Marvell, Lumentum and NVIDIA, which has invested in both companies and relies on advanced optical components for AI systems. However, reports indicate discussions are ongoing rather than a completed deal. Nvidia-Backed Marvell, Lumentum Could Be Nearing Deal
- Negative Sentiment: Valuation and execution risks could limit the benefit to LITE investors if negotiations fail or the terms disappoint. Analysts have flagged Lumentum’s premium valuation, customer concentration, capacity constraints and the difficulty of integrating the businesses. An all-stock transaction would also create significant dilution for Marvell shareholders, potentially complicating deal approval. Marvell-Lumentum Deal: Analysts See Strategic Logic but Flag Price and Integration Risk
Lumentum Stock Up 0.6%
Shares of Lumentum stock opened at $919.53 on Friday. The business has a 50-day moving average price of $923.68 and a 200 day moving average price of $792.49. Lumentum Holdings Inc. has a fifty-two week low of $184.20 and a fifty-two week high of $1,143.00. The firm has a market cap of $83.29 billion, a P/E ratio of -11.19 and a beta of 1.53. The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01.
Lumentum (NASDAQ:LITE – Get Free Report) last released its earnings results on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, topping analysts’ consensus estimates of $2.97 by $0.26. The company had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $987.70 million. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%. Lumentum’s quarterly revenue was up 109.3% compared to the same quarter last year. During the same quarter last year, the business posted $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. On average, sell-side analysts forecast that Lumentum Holdings Inc. will post 19.79 earnings per share for the current fiscal year.
Analyst Ratings Changes
LITE has been the topic of a number of analyst reports. Sanford C. Bernstein assumed coverage on shares of Lumentum in a research note on Wednesday, September 30th. They set an “outperform” rating and a $1,220.00 price objective on the stock. Wolfe Research restated an “outperform” rating on shares of Lumentum in a research note on Friday, August 21st. Zacks Research lowered shares of Lumentum from a “strong-buy” rating to a “hold” rating in a report on Monday, October 12th. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Lumentum in a report on Monday, August 31st. They set a “buy” rating and a $1,200.00 price target for the company. Finally, Citigroup lifted their price target on shares of Lumentum from $1,200.00 to $1,400.00 and gave the stock a “buy” rating in a research note on Monday, September 28th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $1,080.83.
Read Our Latest Research Report on Lumentum
Insider Transactions at Lumentum
In other Lumentum news, SVP Jae Kim sold 12,000 shares of the stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $852.58, for a total transaction of $10,230,960.00. Following the sale, the senior vice president directly owned 37,804 shares of the company’s stock, valued at approximately $32,230,934.32. This represents a 24.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 1,500 shares of the firm’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $827.82, for a total transaction of $1,241,730.00. Following the completion of the transaction, the insider directly owned 100,434 shares in the company, valued at $83,141,273.88. This represents a 1.47% 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. Insiders have sold a total of 94,496 shares of company stock valued at $85,978,498 over the last quarter. Insiders own 0.28% of the company’s stock.
Lumentum Profile
Lumentum Holdings Inc is a technology company that designs and manufactures optical and photonic products for communications networks, industrial applications, and consumer electronics. Its portfolio includes optical components, modules, and subsystems used in fiber-optic networks, data centers, cloud computing infrastructure, telecommunications equipment, and high-speed connectivity systems.
The company also develops laser products for applications such as industrial processing, sensing, three-dimensional imaging, and other specialized commercial and consumer uses.
Featured Articles
- Five stocks we like better than Lumentum
- Phillips 66 Posts Strong Earnings But the Stock Doesn’t Care
- NXP Semiconductors Falls After Strong Earnings—Is the Sell-Off Overdone?
- GE Vernova’s Reservations Are Turning Into Real Orders—But the Market Still Wants More.
- Where’s the Beef? Trian-Led Buyout Proposal Values Wendy’s at $1.4B, But Is It Enough?
Want to see what other hedge funds are holding LITE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Lumentum Holdings Inc. (NASDAQ:LITE – Free Report).
Receive News & Ratings for Lumentum Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Lumentum and related companies with MarketBeat.com's FREE daily email newsletter.
