Paradigm Capital Management Inc. NY Invests $28.83 Million in Lumentum Holdings Inc. $LITE

Paradigm Capital Management Inc. NY bought a new stake in shares of Lumentum Holdings Inc. (NASDAQ:LITE) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm bought 33,600 shares of the technology company’s stock, valued at approximately $28,831,000. Lumentum accounts for about 0.8% of Paradigm Capital Management Inc. NY’s portfolio, making the stock its 26th largest position.

Several other institutional investors and hedge funds have also recently modified their holdings of LITE. Tairen Capital Ltd purchased a new position in shares of Lumentum in the 2nd quarter valued at about $91,778,000. Anther Capital Ltd purchased a new position in Lumentum during the second quarter worth approximately $167,299,000. Maxi Investments CY Ltd acquired a new stake in Lumentum in the second quarter valued at approximately $1,545,000. Cibc World Market Inc. acquired a new stake in Lumentum in the second quarter valued at approximately $33,934,000. Finally, Blue Whale Capital LLP purchased a new stake in shares of Lumentum in the second quarter valued at approximately $158,757,000. Hedge funds and other institutional investors own 94.05% of the company’s stock.

Analyst Ratings Changes

LITE has been the subject of several research analyst reports. Zacks Research raised Lumentum from a “hold” rating to a “strong-buy” rating in a research note on Thursday, August 20th. Craig Hallum boosted their price target on shares of Lumentum from $900.00 to $1,150.00 in a report on Wednesday, May 6th. Mizuho boosted their price target on shares of Lumentum from $1,100.00 to $1,140.00 and gave the stock an “outperform” rating in a report on Wednesday, August 12th. Barclays upped their price objective on shares of Lumentum from $750.00 to $1,000.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 6th. Finally, BNP Paribas Exane increased their price objective on shares of Lumentum from $1,040.00 to $1,300.00 in a report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Lumentum presently has a consensus rating of “Moderate Buy” and a consensus price target of $1,044.67.

Lumentum Price Performance

Shares of Lumentum stock opened at $830.17 on Tuesday. The stock has a market capitalization of $74.47 billion, a P/E ratio of -10.10 and a beta of 1.50. The business has a 50 day simple moving average of $807.22 and a two-hundred day simple moving average of $795.58. Lumentum Holdings Inc. has a 12 month low of $119.25 and a 12 month high of $1,085.68. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.68 and a quick ratio of 1.40.

Lumentum (NASDAQ:LITE) last issued its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.97 by $0.26. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%.The firm had revenue of $1.01 billion for the quarter, compared to analyst estimates of $987.70 million. During the same period in the previous year, the company posted $0.88 earnings per share. The business’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. As a group, analysts predict that Lumentum Holdings Inc. will post 19.76 EPS for the current fiscal year.

Insider Transactions at Lumentum

In other news, SVP Jae Kim sold 1,904 shares of the stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $827.82, for a total value of $1,576,169.28. Following the completion of the sale, the senior vice president directly owned 42,096 shares in the company, valued at $34,847,910.72. This represents a 4.33% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 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 Yuen Wupen sold 1,500 shares of the firm’s stock in a transaction dated 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 completion of the transaction, the insider directly 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 SEC filing for this sale provides additional information. 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. Over the last quarter, insiders have sold 16,352 shares of company stock worth $14,315,562. Company insiders own 0.43% of the company’s stock.

Trending Headlines about Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Analyst estimates increased. Northland Securities raised its Q1 EPS estimates for Lumentum, suggesting improving expectations for the company’s near-term profitability. Q1 EPS Estimates for Lumentum Raised by Northland Securities
• Positive Sentiment: AI demand and guidance remain potential catalysts. Lumentum’s latest results included sharply higher sales, revenue growth of 109.3% year over year, and Q1 fiscal 2027 EPS guidance of $4.05 to $4.35. These trends support the view that demand for optical components used in AI infrastructure could drive better results ahead. Lumentum stock sinks. Why better times may be ahead
• Neutral Sentiment: Strong operating performance is competing with valuation concerns. Lumentum exceeded quarterly EPS and revenue estimates, but investors are reassessing whether its substantial year-to-date gains already reflect much of the AI opportunity. The stock has pulled back 10.55% over the past week and 4.84% over the past three months. Lumentum Holdings (LITE) As AI Demand And Fresh Guidance Put Valuation In Focus
• Negative Sentiment: Reported losses and peer weakness pressured sentiment. Despite adjusted earnings and revenue beats, Lumentum swung to a sizeable net loss. Shares also declined alongside optical-communications peers Coherent and Applied Optoelectronics, with Applied Optoelectronics’ planned $600 million equity offering adding concern about dilution and broader sector conditions. Coherent and Lumentum AI optics suppliers earnings analysis
• Negative Sentiment: Insider selling may weigh on confidence. CEO Michael Hurlston sold 6,185 shares valued at approximately $5.1 million, reducing his direct holdings by about 5%; an SVP also sold roughly $1.6 million in stock. These transactions do not necessarily indicate deteriorating fundamentals but can add short-term selling pressure. Lumentum CEO stock sale

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.