Connor Clark & Lunn Investment Management Ltd. Makes New Investment in Lumentum Holdings Inc. $LITE

Connor Clark & Lunn Investment Management Ltd. acquired a new position in Lumentum Holdings Inc. (NASDAQ:LITE) in the second quarter, HoldingsChannel reports. The firm acquired 20,580 shares of the technology company’s stock, valued at approximately $17,659,000.

Other institutional investors also recently made changes to their positions in the company. Nomura Asset Management Co. Ltd. grew its position in Lumentum by 45.0% during the 4th quarter. Nomura Asset Management Co. Ltd. now owns 369,804 shares of the technology company’s stock worth $136,306,000 after acquiring an additional 114,714 shares during the last quarter. Financiere des Professionnels Fonds d investissement inc. bought a new stake in Lumentum in the first quarter valued at approximately $2,046,000. Styrax Capital LP lifted its position in Lumentum by 3.6% in the first quarter. Styrax Capital LP now owns 140,000 shares of the technology company’s stock valued at $98,386,000 after purchasing an additional 4,837 shares during the last quarter. Whittier Trust Co. boosted its stake in shares of Lumentum by 21,806.5% during the first quarter. Whittier Trust Co. now owns 74,044 shares of the technology company’s stock valued at $57,183,000 after purchasing an additional 73,706 shares during the period. Finally, Andar Capital Management HK Ltd purchased a new stake in shares of Lumentum during the fourth quarter valued at approximately $4,325,000. Hedge funds and other institutional investors own 94.05% of the company’s stock.

Lumentum Trading Up 6.7%

NASDAQ:LITE opened at $885.57 on Wednesday. The company has a 50-day moving average price of $807.42 and a 200-day moving average price of $798.54. Lumentum Holdings Inc. has a 12 month low of $123.50 and a 12 month high of $1,085.68. The company has a current ratio of 1.68, a quick ratio of 1.40 and a debt-to-equity ratio of 0.01. The stock has a market cap of $79.44 billion, a price-to-earnings ratio of -10.77 and a beta of 1.50.

Lumentum (NASDAQ:LITE) last announced its quarterly earnings results 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. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The company had revenue of $1.01 billion for the quarter, compared to analysts’ expectations of $987.70 million. During the same quarter in the previous year, the company earned $0.88 earnings per share. Lumentum’s quarterly revenue was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Equities analysts predict that Lumentum Holdings Inc. will post 19.76 EPS for the current year.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the stock. TD Cowen lifted their target price on shares of Lumentum from $800.00 to $820.00 and gave the stock a “hold” rating in a research note on Wednesday, August 12th. Bank of America dropped their price target 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. Wolfe Research reissued an “outperform” rating on shares of Lumentum in a report on Friday. Needham & Company LLC restated a “buy” rating and issued a $1,040.00 price objective on shares of Lumentum in a research report on Wednesday, August 12th. Finally, Morgan Stanley upped their price objective on shares of Lumentum from $900.00 to $1,000.00 and gave the company an “equal weight” rating in a research note on Wednesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $1,044.67.

Key Headlines Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Lumentum’s 1.6T optical transceiver and 200G laser product ramps are positioned to benefit from growing AI data-center connectivity demand. Capacity expansion and tight industry supply could support revenue growth, although execution remains important. Lumentum’s 1.6T and 200G Ramp Faces Cisco and NVIDIA Competition
• Positive Sentiment: The company’s recent earnings report showed revenue more than doubling year over year, while quarterly earnings exceeded estimates and management issued strong forward guidance. These results reinforce the investment case tied to AI-related demand. Lumentum Holdings as AI Demand and Fresh Guidance Put Valuation in Focus
• Positive Sentiment: Recent weakness in the shares may provide a more favorable entry point if Lumentum delivers on its growth outlook, although the stock’s substantial year-to-date gains make expectations high. Lumentum Stock Sinks: Why Better Times May Be Ahead
• Neutral Sentiment: A reported August short-interest figure of zero shares appears to be a data or reporting error, so it provides no meaningful signal about short-selling pressure.
• Negative Sentiment: Cisco Systems and NVIDIA are increasing competition in high-speed optical components, potentially pressuring Lumentum’s pricing, market share and margins as its new products ramp.
• Negative Sentiment: Lumentum’s rapid sales growth has been accompanied by a sizable net loss, and investors are scrutinizing whether its elevated valuation is justified by future execution. Coherent and Lumentum: Two AI Optics Suppliers Beat Earnings
• Negative Sentiment: CEO Michael Hurlston sold 6,185 shares valued at approximately $5.1 million, while a senior vice president sold roughly $1.6 million in stock. The transactions reduce insider ownership and may weigh modestly on sentiment, though they do not necessarily indicate deteriorating business conditions. Lumentum CEO Share Sale

Insider Transactions at Lumentum

In other Lumentum news, insider Vincent Retort sold 2,483 shares of the company’s stock in a transaction that occurred on 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 transaction, the insider owned 109,438 shares in the company, valued at approximately $90,594,965.16. This represents a 2.22% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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, SVP Jae Kim sold 1,904 shares of the stock in a transaction that occurred 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 completion of the transaction, the senior vice president directly owned 42,096 shares of the company’s stock, valued at $34,847,910.72. This represents a 4.33% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 16,352 shares of company stock valued at $14,315,562. Insiders own 0.43% of the company’s stock.

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.