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

Rakuten Securities Inc. purchased a new stake in Lumentum Holdings Inc. (NASDAQ:LITE) in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm purchased 3,939 shares of the technology company’s stock, valued at approximately $3,380,000. Lumentum comprises 0.8% of Rakuten Securities Inc.’s holdings, making the stock its 22nd biggest holding.

Several other institutional investors have also added to or reduced their stakes in the business. Hilton Head Capital Partners LLC purchased a new stake in shares of Lumentum during the first quarter worth about $25,000. Sachetta LLC raised its position in shares of Lumentum by 118.8% in the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock valued at $25,000 after purchasing an additional 19 shares during the last quarter. Truvestments Capital LLC raised its position in shares of Lumentum by 300.0% in the 4th quarter. Truvestments Capital LLC now owns 76 shares of the technology company’s stock valued at $28,000 after purchasing an additional 57 shares during the last quarter. Triumph Capital Management purchased a new position in shares of Lumentum in the 4th quarter valued at approximately $30,000. Finally, Danske Bank A S acquired a new stake in Lumentum in the 3rd quarter worth approximately $33,000. Institutional investors and hedge funds own 94.05% of the company’s stock.

Insiders Place Their Bets

In other Lumentum news, insider Yuen Wupen sold 1,500 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 transaction of $1,241,730.00. Following the transaction, the insider owned 100,434 shares in the company, valued at approximately $83,141,273.88. This represents a 1.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through 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 3,183 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $909.43, for a total value of $2,894,715.69. Following the completion of the sale, the insider directly owned 114,495 shares in the company, valued at approximately $104,125,187.85. The trade was a 2.70% decrease in their ownership of the stock. 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. Insiders have sold 16,352 shares of company stock worth $14,315,562 in the last 90 days. 0.43% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several analysts have weighed in on LITE shares. Wolfe Research reissued an “outperform” rating on shares of Lumentum in a research report on Friday. Barclays raised their price target on shares of Lumentum from $750.00 to $1,000.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 6th. Zacks Research downgraded shares of Lumentum from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 6th. B. Riley Financial reissued a “buy” rating on shares of Lumentum in a report on Friday, May 1st. Finally, Raymond James Financial reissued an “outperform” rating and issued a $1,036.00 target price on shares of Lumentum in a research report on Wednesday, August 12th. Thirteen equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $1,044.67.

Lumentum Stock Down 1.4%

LITE opened at $866.71 on Friday. Lumentum Holdings Inc. has a fifty-two week low of $115.89 and a fifty-two week high of $1,085.68. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.40 and a current ratio of 1.68. The company has a fifty day moving average of $809.76 and a two-hundred day moving average of $790.21. The stock has a market capitalization of $77.74 billion, a price-to-earnings ratio of -10.54 and a beta of 1.50.

Lumentum (NASDAQ:LITE) last issued its quarterly earnings data on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, topping 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 business 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 firm posted $0.88 earnings per share. The company’s revenue was up 109.3% compared to the same quarter last year. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. On average, research analysts expect that Lumentum Holdings Inc. will post 19.76 earnings per share 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

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.