Styrax Capital LP Decreases Holdings in Lumentum Holdings Inc. $LITE

Styrax Capital LP trimmed its holdings in Lumentum Holdings Inc. (NASDAQ:LITE) by 35.7% in the second quarter, according to the company in its most recent filing with the SEC. The fund owned 90,000 shares of the technology company’s stock after selling 50,000 shares during the quarter. Lumentum accounts for about 5.1% of Styrax Capital LP’s holdings, making the stock its 11th biggest holding. Styrax Capital LP’s holdings in Lumentum were worth $77,225,000 at the end of the most recent quarter.

A number of other institutional investors also recently made changes to their positions in LITE. HB Wealth Management LLC raised its position in Lumentum by 16.8% in the 2nd quarter. HB Wealth Management LLC now owns 2,527 shares of the technology company’s stock worth $2,168,000 after purchasing an additional 364 shares during the period. Saudi Central Bank lifted its stake in Lumentum by 91.0% in the second quarter. Saudi Central Bank now owns 4,998 shares of the technology company’s stock worth $4,289,000 after purchasing an additional 2,381 shares during the last quarter. Chico Wealth RIA purchased a new stake in Lumentum during the second quarter valued at about $216,000. Angeles Wealth Management LLC purchased a new stake in Lumentum during the second quarter valued at about $210,000. Finally, AlphaGrep UK Ltd bought a new position in shares of Lumentum during the second quarter valued at about $1,216,000. Hedge funds and other institutional investors own 94.05% of the company’s stock.

Key Headlines Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Optical-photonics rally: Lumentum gained alongside Coherent and other optical-networking stocks as investors focused on rising demand for lasers and optical components used to connect high-performance AI chips. Optical-photonics stocks article
• Positive Sentiment: Favorable analyst coverage: Deutsche Bank initiated coverage with a Buy rating, while Evercore also began research coverage. New institutional coverage can improve visibility and support investor interest in LITE. Deutsche Bank coverage article Evercore coverage article
• Positive Sentiment: AI infrastructure fundamentals remain strong: Recent results showed approximately $1.01 billion in quarterly revenue, adjusted EPS of $3.23, and guidance for $1.225 billion–$1.275 billion in revenue. Nvidia’s investment and purchase commitment for Lumentum’s laser components further reinforce the AI-demand thesis.
• Neutral Sentiment: Portfolio concentration warning: One analysis said LITE’s roughly 680% advance can make it an outsized portfolio position. The article remained positive on the business but advised investors to reassess position sizing after the substantial rally. Lumentum portfolio concentration article
• Negative Sentiment: Valuation concerns: A Seeking Alpha analysis argued that Lumentum has become too expensive following its dramatic run, creating a potential headwind if growth or AI infrastructure spending fails to exceed already-high expectations. Lumentum valuation article
• Negative Sentiment: Insider selling: Yuen Wupen sold two separate blocks of 500 shares for a combined $862,245. Both trades were conducted under a pre-arranged Rule 10b5-1 plan and represented only 0.43% of the insider’s holdings, making the signal relatively limited.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on LITE. Deutsche Bank Aktiengesellschaft assumed coverage on Lumentum in a research note on Monday, August 31st. They issued a “buy” rating and a $1,200.00 target price for the company. Zacks Research raised Lumentum from a “hold” rating to a “strong-buy” rating in a research note on Thursday, August 20th. Weiss Ratings downgraded Lumentum from a “hold (c-)” rating to a “sell (d-)” rating in a research report on Wednesday, August 19th. Rosenblatt Securities reissued a “buy” rating and set a $1,300.00 price objective on shares of Lumentum in a research note on Wednesday, August 12th. Finally, Morgan Stanley raised their target price on shares of Lumentum from $900.00 to $1,000.00 and gave the stock an “equal weight” rating in a report on Wednesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $1,053.83.

Lumentum Stock Performance

Lumentum stock opened at $881.26 on Friday. The company has a current ratio of 1.68, a quick ratio of 1.40 and a debt-to-equity ratio of 0.01. The firm has a market cap of $79.05 billion, a P/E ratio of -10.72 and a beta of 1.53. Lumentum Holdings Inc. has a 1-year low of $144.20 and a 1-year high of $1,085.68. The firm has a 50-day moving average of $814.62 and a 200-day moving average of $815.74.

Lumentum (NASDAQ:LITE) last announced its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.97 by $0.26. The company had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $987.70 million. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%.Lumentum’s revenue was up 109.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.88 EPS. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Sell-side analysts expect that Lumentum Holdings Inc. will post 19.78 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Michael E. Hurlston sold 548 shares of the firm’s stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $958.66, for a total value of $525,345.68. Following the completion of the sale, the chief executive officer owned 186,951 shares of the company’s stock, valued at $179,222,445.66. This trade represents a 0.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, SVP Jae Kim sold 12,000 shares of Lumentum stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $852.58, for a total transaction of $10,230,960.00. Following the completion of the sale, the senior vice president owned 37,804 shares in the company, valued at approximately $32,230,934.32. This trade represents a 24.09% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 65,147 shares of company stock valued at $55,812,856 over the last three months. 0.43% of the stock is currently owned by corporate insiders.

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.