Highland Capital Management LLC Reduces Stake in Lumentum Holdings Inc. $LITE

Highland Capital Management LLC trimmed its stake in Lumentum Holdings Inc. (NASDAQ:LITE) by 51.6% during the fourth quarter, Holdings Channel reports. The fund owned 6,942 shares of the technology company’s stock after selling 7,387 shares during the period. Highland Capital Management LLC’s holdings in Lumentum were worth $2,559,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. EverSource Wealth Advisors LLC boosted its stake in Lumentum by 363.9% in the third quarter. EverSource Wealth Advisors LLC now owns 167 shares of the technology company’s stock valued at $27,000 after acquiring an additional 131 shares during the last quarter. V Square Quantitative Management LLC purchased a new position in Lumentum in the fourth quarter valued at about $28,000. Danske Bank A S purchased a new position in Lumentum in the third quarter valued at about $33,000. Chesapeake Asset Management LLC purchased a new position in Lumentum in the fourth quarter valued at about $37,000. Finally, BOCHK Asset Management Ltd purchased a new position in Lumentum in the fourth quarter valued at about $37,000. 94.05% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Earnings beat and big y/y profit improvement — Lumentum reported $2.37 EPS vs. the $2.24 consensus and compared with $0.57 a year ago, driven by 90% revenue growth; this confirms stronger AI/data-center demand. Lumentum (LITE) Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Raised guidance — Lumentum updated Q4 FY2026 EPS guidance to $2.85–$3.05 versus a consensus of $2.59, signaling management expects continued momentum. Know When To Hold ‘Em And When To Fold ‘Em
• Positive Sentiment: Analyst price-target increases — Stifel raised its PT to $1,100 (buy) and Loop Capital boosted its PT to $1,400 (buy), providing fresh analyst support that can attract demand. Stifel adjusts price target on Lumentum Loop Capital adjusts PT on Lumentum
• Positive Sentiment: Bullish media/celebrity endorsement — Jim Cramer named Lumentum among stocks he’d buy ahead of earnings, which can spur retail interest. Jim Cramer Shows Bullish Sentiment as He Says He Would “Buy Lumentum”
• Neutral Sentiment: Revenue slightly below consensus — revenue was $808.4M vs. consensus $810.05M; underlying demand signals remain strong but this small miss tempers the beat. Lumentum quarterly report and call
• Neutral Sentiment: High prior run and market attention — pieces noting Lumentum’s ~1,444% YTD surge and positioning ahead of earnings highlight elevated expectations and greater volatility going forward. Does Lumentum’s 1,444% Surge Come to an End Tomorrow?
• Neutral Sentiment: Institutional/strategic interest signals — copy-trading/hedge-fund activity has surfaced in coverage, which can add flows but also follow-on volatility. This copy-trading portfolio soared 60% in two months

Lumentum Stock Performance

Shares of LITE stock opened at $994.56 on Wednesday. The stock has a market capitalization of $71.01 billion, a P/E ratio of 305.08 and a beta of 1.53. The company has a current ratio of 0.61, a quick ratio of 0.45 and a debt-to-equity ratio of 0.06. The firm’s 50 day moving average is $766.66 and its 200 day moving average is $492.31. Lumentum Holdings Inc. has a 12 month low of $60.38 and a 12 month high of $1,021.00.

Lumentum (NASDAQ:LITE) last announced its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 EPS for the quarter, beating analysts’ consensus estimates of $2.27 by $0.10. The company had revenue of $808.40 million for the quarter, compared to analysts’ expectations of $810.05 million. Lumentum had a net margin of 11.95% and a return on equity of 17.27%. Lumentum’s revenue was up 90.1% compared to the same quarter last year. During the same period in the prior year, the company posted $0.57 EPS. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. On average, sell-side analysts anticipate that Lumentum Holdings Inc. will post 5.87 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. TD Cowen boosted their target price on shares of Lumentum from $675.00 to $875.00 and gave the company a “hold” rating in a research note on Friday, April 10th. Mizuho upped their price target on shares of Lumentum from $750.00 to $930.00 and gave the company an “outperform” rating in a research note on Wednesday, April 8th. Northland Securities set a $1,000.00 price target on shares of Lumentum in a research note on Monday, April 20th. JPMorgan Chase & Co. upped their price target on shares of Lumentum to $950.00 and gave the company an “overweight” rating in a research note on Thursday, April 9th. Finally, Needham & Company LLC upped their price target on shares of Lumentum from $880.00 to $1,040.00 and gave the company a “buy” rating in a research note on Tuesday, April 21st. Twelve research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Lumentum presently has a consensus rating of “Moderate Buy” and an average target price of $812.71.

Insider Activity

In related news, insider Vincent Retort sold 3,441 shares of the company’s stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $545.78, for a total transaction of $1,878,028.98. Following the sale, the insider owned 95,975 shares of the company’s stock, valued at approximately $52,381,235.50. This represents a 3.46% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Yuen Wupen sold 3,157 shares of the company’s stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $538.00, for a total transaction of $1,698,466.00. Following the sale, the insider directly owned 88,439 shares in the company, valued at $47,580,182. This trade represents a 3.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 65,775 shares of company stock worth $38,851,343. 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.