Freestone Grove Partners LP Takes Position in Lumentum Holdings Inc. $LITE

Freestone Grove Partners LP purchased a new position in shares of Lumentum Holdings Inc. (NASDAQ:LITE) during the second quarter, Holdings Channel reports. The firm purchased 40,426 shares of the technology company’s stock, valued at approximately $34,688,000.

A number of other hedge funds also recently bought and sold shares of the business. Jupiter Topco LLC acquired a new position in shares of Lumentum during the 2nd quarter worth approximately $1,621,396,000. Arrowstreet Capital Limited Partnership grew its holdings in Lumentum by 18.7% in 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 buying an additional 291,591 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of 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 acquiring an additional 123,265 shares during the last quarter. Situational Awareness LP increased its stake in shares of 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 acquiring an additional 880,800 shares during the last quarter. Finally, Norges Bank purchased a new position in shares of Lumentum during the 4th quarter worth $474,495,000. Institutional investors and hedge funds own 94.05% of the company’s stock.

Lumentum Stock Performance

Shares of Lumentum stock opened at $939.03 on Thursday. 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 Holdings Inc. has a 52 week low of $123.78 and a 52 week high of $1,085.68. The firm’s 50 day moving average is $808.80 and its two-hundred day moving average is $801.60. The firm has a market capitalization of $84.23 billion, a P/E ratio of -11.42 and a beta of 1.50.

Lumentum (NASDAQ:LITE) last issued its 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. The business had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The company’s revenue for the quarter was up 109.3% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Research analysts forecast that Lumentum Holdings Inc. will post 19.76 EPS for the current fiscal year.

Insider Activity at Lumentum

In other Lumentum news, insider Yuen Wupen sold 500 shares of the company’s stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $882.15, for a total value of $441,075.00. Following the completion of the transaction, the insider owned 91,729 shares in the company, valued at $80,918,737.35. This represents a 0.54% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Jae Kim sold 1,904 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 value of $1,576,169.28. Following the transaction, the senior vice president directly owned 42,096 shares in the company, valued at approximately $34,847,910.72. The trade was a 4.33% 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. Insiders sold 17,352 shares of company stock valued at $15,168,757 in the last ninety days. 0.43% of the stock is currently owned by insiders.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: AI optics demand is driving renewed buying. Lumentum gained for a second consecutive session as investors continued to favor companies supplying optical components for expanding AI data-center networks. Rival optoelectronics stocks were comparatively weaker, highlighting Lumentum’s current position as a preferred AI connectivity play. Lumentum Climbs 4% as the AI Optics Trade Extends a Second Session
• Positive Sentiment: Order-flow data signaled strong demand. A reported “Power Inflow” alert indicated substantial institutional and retail buying pressure, reinforcing the bullish technical momentum behind LITE’s advance. Lumentum Shares Rise Over 4% After Key Trading Signal
• Neutral Sentiment: New product ramps support the growth outlook but raise execution demands. Lumentum’s 1.6T transceivers and 200G lasers are being ramped to address AI networking demand, while capacity expansion and tight supply could support revenue growth. Lumentum’s 1.6T & 200G Ramp Faces Cisco & NVIDIA Competition
• Negative Sentiment: Insider sales remain a modest overhang. Insider Yuen Wupen sold a combined 1,000 shares for approximately $853,195 across August 24 and August 26. Both transactions were conducted under a pre-arranged Rule 10b5-1 plan and represented only about 0.54% of the insider’s holdings in each sale, reducing their significance as a bearish signal. SEC Insider Trading Filing
• Negative Sentiment: Competition could pressure future growth and margins. Cisco and NVIDIA are developing competing solutions as Lumentum expands its AI connectivity products, creating execution and pricing risks despite currently strong demand.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on LITE shares. Zacks Research raised Lumentum from a “hold” rating to a “strong-buy” rating in a research note on Thursday, August 20th. Loop Capital boosted their price target on shares of Lumentum from $900.00 to $1,400.00 and gave the stock a “buy” rating in a research note on Tuesday, May 5th. Morgan Stanley boosted their price objective on Lumentum from $900.00 to $1,000.00 and gave the stock an “equal weight” rating in a research report on Wednesday, August 12th. UBS Group set a $820.00 target price on shares of Lumentum in a research note on Wednesday, August 12th. Finally, Bank of America dropped their target price on Lumentum from $1,100.00 to $1,000.00 and set a “neutral” rating on the stock in a report on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $1,044.67.

Lumentum Company Profile

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.