Intech Investment Management LLC has significantly increased its holdings in Lumentum Holdings Inc. (NASDAQ: LITE), raising its stock position by 87.6% during the second quarter. According to a recent disclosure to the Securities and Exchange Commission, the firm now owns 26,428 shares of the optical and photonic products manufacturer, with a total value of approximately $2.51 million at the end of the reporting period.
This surge in investment reflects a broader trend among institutional investors in the technology sector. Several other funds have also adjusted their stakes in Lumentum. For instance, FNY Investment Advisers LLC acquired a new stake valued at about $38,000, while Skandinaviska Enskilda Banken AB invested roughly $25,000 in the first quarter. Additionally, SVB Wealth LLC purchased shares worth about $40,000 during the same period.
Another notable increase came from Hantz Financial Services Inc., which expanded its position by 224.4% in the second quarter, now owning 704 shares valued at $67,000. Similarly, Allworth Financial LP grew its stake by 121.3%, holding 737 shares worth approximately $70,000. Overall, institutional investors now control about 94.05% of Lumentum’s stock.
Analysts Weigh In on Lumentum’s Future
Recent analyses from equity research firms suggest a positive outlook for Lumentum. Citigroup initiated coverage with a “buy” rating and a price target of $165.00. Mizuho also began coverage, issuing an “outperform” rating with a more ambitious price target of $290.00. On the other hand, Raymond James Financial downgraded its rating from “strong-buy” to “outperform,” setting a target of $220.00.
In contrast, Rosenblatt Securities raised its price objective to $280.00, maintaining a “buy” rating, while Northland Securities established a target price of $250.00. The consensus from analysts indicates a “Moderate Buy” rating, with an average price target of $196.88.
Insider Transactions and Performance Metrics
Concerns regarding insider trading have surfaced, as Yuen Wupen, an insider, sold 821 shares on November 17, 2023, at an average price of $234.14, totaling approximately $192,229. Following this transaction, Wupen’s holdings decreased by 0.84%. Meanwhile, Julia Suzanne Johnson, a director at Lumentum, sold 10,000 shares for around $2.7 million on November 10, 2023, marking a 45.38% reduction in her ownership.
In the past ninety days, insiders have sold a combined total of 37,965 shares, valued at approximately $7.81 million. Currently, corporate insiders hold only 0.43% of the company’s stock.
Lumentum shares opened at $268.92 on Thursday. The company’s quick ratio stands at 1.02, with a current ratio of 1.37 and a debt-to-equity ratio of 2.77. Over the past year, Lumentum has experienced a low of $45.65 and a high of $280.22. The firm reported a quarterly earnings per share (EPS) of $1.10 on November 4, 2023, surpassing expectations of $1.03 by $0.07. Revenue for the quarter was $533.80 million, exceeding the consensus estimate of $525.10 million.
With a market capitalization of $19.07 billion and a price-to-earnings ratio of 180.48, Lumentum continues to navigate a competitive landscape in the optical communication sector. The company projects an EPS guidance of 1.300-1.500 for the second quarter of 2026, while analysts anticipate an EPS of 0.03 for the current year.
Lumentum Holdings Inc. specializes in the manufacturing and sale of optical and photonic products across multiple regions, including the Americas, Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two primary segments: Optical Communications and Commercial Lasers, which provide essential components for high-capacity fiber optic cable transmission.
