Capital Research Global Investors Sells 46,833 Shares of Lumentum Holdings Inc. $LITE

Capital Research Global Investors decreased its holdings in Lumentum Holdings Inc. (NASDAQ:LITE) by 2.8% in the third quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 1,622,546 shares of the technology company’s stock after selling 46,833 shares during the quarter. Capital Research Global Investors owned 2.29% of Lumentum worth $264,004,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Advisors Asset Management Inc. raised its holdings in shares of Lumentum by 36.8% during the first quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company’s stock valued at $59,000 after purchasing an additional 254 shares during the last quarter. NewEdge Advisors LLC grew its position in Lumentum by 109.9% in the 1st quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company’s stock worth $747,000 after purchasing an additional 6,275 shares during the period. Empowered Funds LLC grew its position in Lumentum by 9.1% in the 1st quarter. Empowered Funds LLC now owns 8,139 shares of the technology company’s stock worth $507,000 after purchasing an additional 680 shares during the period. Envestnet Asset Management Inc. boosted its stake in shares of Lumentum by 16.3% during the 2nd quarter. Envestnet Asset Management Inc. now owns 14,926 shares of the technology company’s stock worth $1,419,000 after acquiring an additional 2,089 shares during the last quarter. Finally, Fox Run Management L.L.C. bought a new stake in shares of Lumentum during the 2nd quarter valued at $558,000. Institutional investors own 94.05% of the company’s stock.

Lumentum News Summary

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: S&P 500 inclusion creates a predictable institutional bid (passive funds must buy shares ahead of the effective date), helping explain the recent surge in volume and price. These 2 AI Stocks Just Got a Massive S&P 500 Catalyst (LITE)
• Positive Sentiment: NVIDIA relationship/backing (reports of strategic partnership and capital) is reframing Lumentum as a critical supplier to AI data‑center buildouts, driving investor confidence in its addressable market. How The Lumentum (LITE) Story Is Shifting With Nvidia Ties And New Analyst Targets
• Positive Sentiment: Rosenblatt upgraded Lumentum’s outlook (price target raised substantially), citing higher earnings expectations tied to NVIDIA’s involvement — an analyst endorsement that supports more upside and institutional interest. Rosenblatt is Bullish on Lumentum Holdings Inc. (LITE)
• Positive Sentiment: Short‑term momentum: optics/photonic peers are ripping higher and S&P rebalancing headlines have triggered front‑running and momentum flows (several outlets reported double‑digit moves in the sector), amplifying the price move. Lumentum Soars After S&P Rebalance Ahead of Vertiv, EchoStar, and Coherent
• Neutral Sentiment: Broader thesis: analysts and sector commentary highlight photonics as a long‑term AI infrastructure play (optical switch/transceiver demand), which supports higher structural growth but is more of a multi‑quarter story than an immediate catalyst. De-Clogging the Future: Why Photonics is AI’s Ultimate Growth Engine
• Negative Sentiment: Valuation risk: several pieces note Lumentum trades at a premium (e.g., elevated P/S and P/E multiples), which raises the risk of pullbacks if near‑term execution or macro flows disappoint. Should Investors Buy LITE Stock Despite 9.58x P/S Premium Valuation?

Insider Activity at Lumentum

In other Lumentum news, Director Penny Herscher sold 4,000 shares of the firm’s stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $597.29, for a total value of $2,389,160.00. Following the transaction, the director directly owned 2,057 shares of the company’s stock, valued at $1,228,625.53. This trade represents a 66.04% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Yuen Wupen sold 3,157 shares of the company’s stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $538.00, for a total transaction of $1,698,466.00. Following the completion of the sale, the insider directly owned 88,439 shares of the company’s stock, valued at $47,580,182. This represents a 3.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 65,775 shares of company stock worth $38,851,343 over the last 90 days. 0.43% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the company. UBS Group raised their target price on Lumentum from $215.00 to $455.00 and gave the stock a “neutral” rating in a report on Wednesday, February 4th. Bank of America raised their price objective on Lumentum to $520.00 and gave the stock a “neutral” rating in a research note on Wednesday, February 4th. Stifel Nicolaus increased their price target on Lumentum to $800.00 and gave the stock a “buy” rating in a research note on Monday, March 2nd. Rosenblatt Securities lifted their price objective on shares of Lumentum to $580.00 and gave the company a “buy” rating in a research report on Wednesday, February 4th. Finally, Northland Securities set a $350.00 price objective on Lumentum in a report on Wednesday, December 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, Lumentum presently has an average rating of “Moderate Buy” and an average target price of $542.07.

Lumentum Stock Up 4.9%

NASDAQ:LITE opened at $672.00 on Wednesday. The company’s 50-day simple moving average is $494.27 and its 200-day simple moving average is $321.03. The stock has a market capitalization of $47.98 billion, a P/E ratio of 206.13 and a beta of 1.38. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.45 and a current ratio of 0.61. Lumentum Holdings Inc. has a fifty-two week low of $45.65 and a fifty-two week high of $783.80.

Lumentum (NASDAQ:LITE) last posted its quarterly earnings results on Tuesday, February 3rd. The technology company reported $1.67 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.41 by $0.26. The company had revenue of $665.50 million during the quarter, compared to analyst estimates of $646.74 million. Lumentum had a net margin of 11.95% and a return on equity of 17.27%. Lumentum’s revenue for the quarter was up 65.5% compared to the same quarter last year. During the same period last year, the firm posted $0.42 EPS. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. On average, equities analysts anticipate that Lumentum Holdings Inc. will post 0.03 earnings per share for the current fiscal year.

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.