Lumentum Holdings Inc. $LITE Stake Boosted by Franchise GP Ltd

Franchise GP Ltd boosted its holdings in Lumentum Holdings Inc. (NASDAQ:LITE) by 201.7% during the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 13,880 shares of the technology company’s stock after acquiring an additional 9,280 shares during the period. Lumentum comprises about 5.7% of Franchise GP Ltd’s investment portfolio, making the stock its 9th biggest holding. Franchise GP Ltd’s holdings in Lumentum were worth $13,481,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors 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 during the first quarter worth about $25,000. Sachetta LLC grew its holdings in Lumentum by 118.8% in the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock worth $25,000 after buying an additional 19 shares in the last quarter. Burkett Financial Services LLC acquired a new stake in Lumentum in the 3rd quarter valued at approximately $28,000. Meeder Asset Management Inc. acquired a new position in Lumentum during the 2nd quarter worth $40,000. Finally, Keating Financial Advisory Services Inc. acquired a new position in Lumentum during the 2nd quarter worth $41,000. 94.05% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Analyst price targets remain above the current share price. A survey of 23 analysts produced an average target of $1,078.75, implying substantial potential upside, while Stifel raised its target from $1,100 to $1,232. These targets indicate that some analysts still expect strong demand for Lumentum’s photonics and optical components. 23 analysts set USD 1,078.75 target for Lumentum stock Stifel raised target for Lumentum stock
• Positive Sentiment: The long-term AI investment case remains intact. Investor commentary highlights Lumentum’s transformation from a cyclical smartphone laser supplier into a key provider of optical technology for AI infrastructure. Its recent earnings growth and stronger order book support the longer-term bullish thesis, although the article does not provide a new near-term catalyst. The Long-Term Investment Case for Lumentum
• Neutral Sentiment: Sector sentiment is deteriorating. Optical suppliers, including Lumentum, Coherent, and Applied Optoelectronics, are falling together as money rotates toward defensive sectors and investors question how quickly AI data-center projects will be funded. This appears to be a valuation and sentiment-driven pullback across the group. Optical Stocks Extend Slide as Money Rotates Into Defensives
• Negative Sentiment: Zacks downgraded LITE from Strong Buy to Hold. The less bullish recommendation is weighing on the stock, particularly after its substantial rally and amid broader concerns about AI infrastructure spending. Zacks downgrades Lumentum to Hold

Lumentum Trading Down 3.0%

Shares of LITE stock opened at $869.54 on Friday. The stock has a 50-day simple moving average of $932.80 and a 200 day simple moving average of $876.43. Lumentum Holdings Inc. has a fifty-two week low of $152.54 and a fifty-two week high of $1,143.00. The stock has a market capitalization of $78.76 billion, a P/E ratio of -10.58 and a beta of 1.53. 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 (NASDAQ:LITE) last issued its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, beating analysts’ consensus estimates 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 during the quarter, compared to the consensus estimate of $987.70 million. During the same period in the prior year, the company earned $0.88 EPS. Lumentum’s revenue was up 109.3% on a year-over-year basis. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. On average, sell-side analysts expect that Lumentum Holdings Inc. will post 19.79 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on LITE. Weiss Ratings cut shares of Lumentum from a “hold (c-)” rating to a “sell (d-)” rating in a research note on Wednesday, August 19th. Needham & Company LLC reiterated a “buy” rating and issued a $1,040.00 target price on shares of Lumentum in a research report on Wednesday, August 12th. Morgan Stanley raised their target price 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. Stifel Nicolaus boosted their price target on shares of Lumentum from $1,100.00 to $1,232.00 and gave the stock a “buy” rating in a research report on Monday, October 5th. Finally, Rosenblatt Securities reissued a “buy” rating and set a $1,300.00 target price on shares of Lumentum in a report on Monday, October 5th. Sixteen investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Lumentum currently has an average rating of “Moderate Buy” and an average target price of $1,078.75.

Insiders Place Their Bets

In other news, CFO Wajid Ali sold 24,542 shares of the firm’s stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $1,048.50, for a total transaction of $25,732,287.00. Following the completion of the sale, the chief financial officer directly owned 75,074 shares of the company’s stock, valued at $78,715,089. This trade represents a 24.64% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yuen Wupen sold 307 shares of Lumentum stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $945.00, for a total value of $290,115.00. Following the completion of the transaction, the insider owned 108,320 shares in the company, valued at $102,362,400. The trade was a 0.28% decrease in their ownership of the stock. 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. Insiders have sold a total of 94,496 shares of company stock valued at $85,978,498 in the last quarter. Insiders own 0.28% of the company’s stock.

Lumentum Company Profile

Lumentum Holdings Inc is a photonics and optical technology company that develops and manufactures products used to transmit, process and manage light. Its solutions support communications networks, data centers, cloud computing infrastructure, industrial applications, and other technology markets that rely on high-speed optical connectivity and precision lasers.

The company’s product portfolio includes optical components and modules for telecommunications and networking, lasers and laser systems, optical amplifiers, wavelength-management products, and photonic subsystems.