Rakuten Securities Inc. Buys New Holdings in Lumentum Holdings Inc. $LITE

Rakuten Securities Inc. purchased a new position in Lumentum Holdings Inc. (NASDAQ:LITE) during the second quarter, according to its most recent Form 13F filing with the SEC. The fund purchased 3,939 shares of the technology company’s stock, valued at approximately $3,380,000. Lumentum makes up about 0.8% of Rakuten Securities Inc.’s investment portfolio, making the stock its 22nd largest holding.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the business. Arrowstreet Capital Limited Partnership raised its position in shares of Lumentum by 8,579.2% during the third quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company’s stock valued at $254,350,000 after buying an additional 1,545,199 shares during the last quarter. Norges Bank purchased a new position in shares of Lumentum in the fourth quarter worth $474,495,000. Value Aligned Research Advisors LLC bought a new position in shares of Lumentum during the fourth quarter worth $432,062,000. Situational Awareness LP grew its stake in Lumentum by 210.9% during the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock valued at $478,577,000 after acquiring an additional 880,800 shares in the last quarter. Finally, Aspex Management HK Ltd bought a new stake in Lumentum in the 4th quarter valued at $251,363,000. 94.05% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several analysts have commented on the stock. Zacks Research cut shares of Lumentum from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 6th. Loop Capital raised their price objective on Lumentum from $900.00 to $1,400.00 and gave the company a “buy” rating in a research report on Tuesday, May 5th. Craig Hallum lifted their target price on Lumentum from $900.00 to $1,150.00 in a report on Wednesday, May 6th. Weiss Ratings downgraded Lumentum from a “hold (c-)” rating to a “sell (d-)” rating in a research report on Wednesday. Finally, TD Cowen increased their price target on Lumentum from $800.00 to $820.00 and gave the company a “hold” rating in a research note 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 issued a Sell rating to the stock. Based on data from MarketBeat, Lumentum presently has an average rating of “Moderate Buy” and a consensus target price of $1,044.67.

Insiders Place Their Bets

In other Lumentum news, SVP Jae Kim sold 1,904 shares of the stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $827.82, for a total value of $1,576,169.28. Following the sale, the senior vice president owned 42,096 shares in the company, valued at $34,847,910.72. This trade represents a 4.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at 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, insider Vincent Retort sold 2,483 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 $2,055,477.06. Following the completion of the transaction, the insider directly owned 109,438 shares in the company, valued at $90,594,965.16. This represents a 2.22% decrease in their position. The SEC filing for this sale provides additional information. 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. In the last three months, insiders have sold 16,352 shares of company stock valued at $14,315,562. Corporate insiders own 0.43% of the company’s stock.

Lumentum Trading Down 1.4%

Shares of NASDAQ LITE opened at $866.71 on Friday. Lumentum Holdings Inc. has a 1-year low of $115.89 and a 1-year high of $1,085.68. 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’s 50 day moving average is $809.76 and its two-hundred day moving average is $790.21. The stock has a market capitalization of $77.74 billion, a P/E ratio of -10.54 and a beta of 1.50.

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

Lumentum News Roundup

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

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.