Watershed Asset Management L.L.C. Sells 1,800 Shares of Lumentum Holdings Inc. $LITE

Watershed Asset Management L.L.C. cut its holdings in shares of Lumentum Holdings Inc. (NASDAQ:LITE) by 45.0% during the first quarter, Holdings Channel reports. The fund owned 2,200 shares of the technology company’s stock after selling 1,800 shares during the quarter. Lumentum comprises about 1.6% of Watershed Asset Management L.L.C.’s holdings, making the stock its 18th biggest holding. Watershed Asset Management L.L.C.’s holdings in Lumentum were worth $1,546,000 at the end of the most recent quarter.

A number of other large investors have also added to or reduced their stakes in LITE. Sachetta LLC lifted its holdings in Lumentum by 118.8% during the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock valued at $25,000 after purchasing an additional 19 shares during the last quarter. Hilton Head Capital Partners LLC acquired a new position in shares of Lumentum in the first quarter valued at $25,000. Abel Hall LLC increased its holdings in shares of Lumentum by 5.5% in the first quarter. Abel Hall LLC now owns 693 shares of the technology company’s stock valued at $487,000 after purchasing an additional 36 shares during the last quarter. Checchi Capital Advisers LLC raised its position in shares of Lumentum by 5.1% in the first quarter. Checchi Capital Advisers LLC now owns 790 shares of the technology company’s stock valued at $555,000 after purchasing an additional 38 shares during the period. Finally, 180 Wealth Advisors LLC raised its position in shares of Lumentum by 2.9% in the first quarter. 180 Wealth Advisors LLC now owns 1,553 shares of the technology company’s stock valued at $1,092,000 after purchasing an additional 44 shares during the period. 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: Analysts highlighted Lumentum’s record laser-chip shipments and capacity expansion, suggesting the company is well positioned to benefit from surging AI networking demand. Can Lumentum’s AI Laser Chip Demand Accelerate Revenue Growth?
• Positive Sentiment: Lumentum was upgraded to Zacks Rank #2 (Buy) after earnings estimates were raised, which signals improving sentiment around near-term earnings prospects. Lumentum (LITE) Upgraded to Buy: What Does It Mean for the Stock?
• Positive Sentiment: Coverage comparing Lumentum with Applied Digital favored Lumentum’s stronger execution, AI-driven growth, and lower valuation, reinforcing the stock’s appeal to growth investors. LITE vs. APLD: Which AI Infrastructure Stock Offers Better Growth?
• Neutral Sentiment: UBS reaffirmed its Hold rating, which may temper enthusiasm even as the broader AI-demand story remains constructive. UBS Reaffirms Their Hold Rating on Lumentum Holdings (LITE)
• Neutral Sentiment: Citi’s addition of Lumentum to a 90-day catalyst watch suggests traders are watching for near-term catalysts, but it does not by itself change the fundamental outlook. Lumentum in focus as Citi adds 90-day catalyst watch
• Negative Sentiment: Some articles point to valuation and analyst-watch attention rather than confirmed new financial results, so the stock could be vulnerable if AI demand growth or execution does not continue to meet high expectations.

Insider Transactions at Lumentum

In other news, insider Vincent Retort sold 3,183 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $953.95, for a total transaction of $3,036,422.85. Following the transaction, the insider directly owned 89,563 shares of the company’s stock, valued at approximately $85,438,623.85. This trade represents a 3.43% 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 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, Director Ian Small sold 4,954 shares of Lumentum stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $868.07, for a total transaction of $4,300,418.78. Following the completion of the sale, the director owned 21,008 shares of the company’s stock, valued at approximately $18,236,414.56. The trade was a 19.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 41,260 shares of company stock worth $38,859,220. Company insiders own 0.43% of the company’s stock.

Lumentum Stock Up 3.8%

LITE opened at $732.82 on Friday. Lumentum Holdings Inc. has a fifty-two week low of $97.55 and a fifty-two week high of $1,085.68. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14. The company has a market capitalization of $57.01 billion, a P/E ratio of 135.71 and a beta of 1.48. The stock has a fifty day moving average of $865.06 and a 200-day moving average of $710.76.

Lumentum (NASDAQ:LITE) last released its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, beating the consensus estimate of $2.27 by $0.10. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. The business had revenue of $808.40 million for the quarter, compared to the consensus estimate of $810.21 million. During the same period in the prior year, the company posted $0.57 earnings per share. Lumentum’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, equities analysts expect that Lumentum Holdings Inc. will post 6.4 EPS for the current year.

Wall Street Analysts Forecast Growth

Several analysts recently commented on LITE shares. Raymond James Financial reaffirmed an “outperform” rating and set a $1,014.00 target price on shares of Lumentum in a report on Wednesday, May 6th. Citic Securities increased their price target on shares of Lumentum from $620.00 to $1,186.00 in a report on Monday, May 11th. Mizuho set a $1,100.00 price objective on shares of Lumentum in a research report on Wednesday, May 6th. JPMorgan Chase & Co. boosted their price objective on Lumentum from $950.00 to $1,130.00 and gave the stock an “overweight” rating in a report on Wednesday, May 6th. Finally, Craig Hallum upped their target price on Lumentum from $900.00 to $1,150.00 in a research report on Wednesday, May 6th. Fourteen research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, Lumentum has a consensus rating of “Moderate Buy” and an average target price of $1,012.67.

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.