Front Street Capital Management Inc. Buys New Holdings in Lumentum Holdings Inc. $LITE

Front Street Capital Management Inc. purchased a new position in shares of Lumentum Holdings Inc. (NASDAQ:LITE) during the second quarter, according to its most recent disclosure with the SEC. The institutional investor purchased 43,038 shares of the technology company’s stock, valued at approximately $36,929,000. Lumentum accounts for 4.2% of Front Street Capital Management Inc.’s holdings, making the stock its 7th biggest position. Front Street Capital Management Inc. owned about 0.06% of Lumentum at the end of the most recent quarter.

Other hedge funds have also recently added to or reduced their stakes in the company. Hilton Head Capital Partners LLC bought a new position in shares of Lumentum in the 1st quarter worth $25,000. Sachetta LLC lifted its stake in shares of Lumentum by 118.8% in the first quarter. Sachetta LLC now owns 35 shares of the technology company’s stock valued at $25,000 after buying an additional 19 shares in the last quarter. Truvestments Capital LLC lifted its stake in shares of Lumentum by 300.0% in the fourth quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock valued at $28,000 after buying an additional 57 shares in the last quarter. Triumph Capital Management acquired a new position in shares of Lumentum during the fourth quarter valued at about $30,000. Finally, Danske Bank A S acquired a new position in shares of Lumentum during the third quarter valued at about $33,000. Institutional investors and hedge funds own 94.05% of the company’s stock.

Insider Activity at Lumentum

In related news, SVP Jae Kim sold 1,904 shares of the stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $827.82, for a total transaction of $1,576,169.28. Following the completion of the transaction, the senior vice president owned 42,096 shares in the company, valued at approximately $34,847,910.72. This represents a 4.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 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 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 sale, the insider owned 100,434 shares of the company’s stock, valued at $83,141,273.88. This trade 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 16,352 shares of company stock worth $14,315,562 in the last ninety days. Corporate insiders own 0.43% of the company’s stock.

Lumentum Stock Performance

Shares of Lumentum stock opened at $830.17 on Tuesday. The business’s fifty day simple moving average is $807.22 and its 200 day simple moving average is $795.58. The firm has a market capitalization of $74.47 billion, a P/E ratio of -10.10 and a beta of 1.50. Lumentum Holdings Inc. has a 12 month low of $119.25 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.

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

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Analyst estimates increased. Northland Securities raised its Q1 EPS estimates for Lumentum, suggesting improving expectations for the company’s near-term profitability. Q1 EPS Estimates for Lumentum Raised by Northland Securities
• Positive Sentiment: AI demand and guidance remain potential catalysts. Lumentum’s latest results included sharply higher sales, revenue growth of 109.3% year over year, and Q1 fiscal 2027 EPS guidance of $4.05 to $4.35. These trends support the view that demand for optical components used in AI infrastructure could drive better results ahead. Lumentum stock sinks. Why better times may be ahead
• Neutral Sentiment: Strong operating performance is competing with valuation concerns. Lumentum exceeded quarterly EPS and revenue estimates, but investors are reassessing whether its substantial year-to-date gains already reflect much of the AI opportunity. The stock has pulled back 10.55% over the past week and 4.84% over the past three months. Lumentum Holdings (LITE) As AI Demand And Fresh Guidance Put Valuation In Focus
• Negative Sentiment: Reported losses and peer weakness pressured sentiment. Despite adjusted earnings and revenue beats, Lumentum swung to a sizeable net loss. Shares also declined alongside optical-communications peers Coherent and Applied Optoelectronics, with Applied Optoelectronics’ planned $600 million equity offering adding concern about dilution and broader sector conditions. Coherent and Lumentum AI optics suppliers earnings analysis
• Negative Sentiment: Insider selling may weigh on confidence. CEO Michael Hurlston sold 6,185 shares valued at approximately $5.1 million, reducing his direct holdings by about 5%; an SVP also sold roughly $1.6 million in stock. These transactions do not necessarily indicate deteriorating fundamentals but can add short-term selling pressure. Lumentum CEO stock sale

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on LITE shares. Raymond James Financial restated an “outperform” rating and issued a $1,036.00 target price on shares of Lumentum in a report on Wednesday, August 12th. Loop Capital lifted their price target on Lumentum from $900.00 to $1,400.00 and gave the company a “buy” rating in a research note on Tuesday, May 5th. Wolfe Research reissued an “outperform” rating on shares of Lumentum in a report on Friday. Bank of America lowered their price objective on Lumentum from $1,100.00 to $1,000.00 and set a “neutral” rating for the company in a research note on Wednesday, August 12th. Finally, Citic Securities lifted their target price on Lumentum from $620.00 to $1,186.00 in a research report on Monday, May 11th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Lumentum has an average rating of “Moderate Buy” and a consensus price target of $1,044.67.

Lumentum 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.