Principal Financial Group Inc. Lowers Stock Position in Lumentum Holdings Inc. $LITE

Principal Financial Group Inc. cut its stake in shares of Lumentum Holdings Inc. (NASDAQ:LITE) by 22.2% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 118,545 shares of the technology company’s stock after selling 33,883 shares during the quarter. Principal Financial Group Inc.’s holdings in Lumentum were worth $83,309,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Arrowstreet Capital Limited Partnership raised its stake in Lumentum by 8,579.2% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company’s stock worth $254,350,000 after acquiring an additional 1,545,199 shares during the period. Norges Bank bought a new position in shares of Lumentum in the fourth quarter worth approximately $474,495,000. Value Aligned Research Advisors LLC purchased a new stake in shares of Lumentum in the fourth quarter worth $432,062,000. Situational Awareness LP increased its stake in shares of Lumentum by 210.9% in the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock worth $478,577,000 after purchasing an additional 880,800 shares in the last quarter. Finally, Assenagon Asset Management S.A. raised its position in shares of Lumentum by 707.0% during the 4th quarter. Assenagon Asset Management S.A. now owns 994,478 shares of the technology company’s stock valued at $366,555,000 after purchasing an additional 871,249 shares during the period. 94.05% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on LITE. Raymond James Financial reaffirmed an “outperform” rating and issued a $1,014.00 target price on shares of Lumentum in a report on Wednesday, May 6th. Morgan Stanley raised their price target on Lumentum from $710.00 to $900.00 and gave the company an “equal weight” rating in a report on Wednesday, May 6th. Citigroup restated a “buy” rating on shares of Lumentum in a research report on Thursday. Loop Capital upped their price objective on Lumentum from $900.00 to $1,400.00 and gave the stock a “buy” rating in a research note on Tuesday, May 5th. Finally, UBS Group increased their target price on Lumentum from $455.00 to $960.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 6th. Fourteen analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Lumentum has a consensus rating of “Moderate Buy” and an average price target of $1,012.67.

Lumentum Trading Down 6.1%

LITE stock opened at $706.23 on Friday. The firm has a fifty day moving average price of $868.47 and a 200 day moving average price of $710.60. Lumentum Holdings Inc. has a fifty-two week low of $97.55 and a fifty-two week high of $1,085.68. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.97 and a current ratio of 1.14. The firm has a market cap of $54.94 billion, a PE ratio of 130.78 and a beta of 1.48.

Lumentum (NASDAQ:LITE) last announced its quarterly earnings results on Tuesday, May 5th. The technology company reported $2.37 earnings per share for the quarter, topping the consensus estimate of $2.27 by $0.10. The company had revenue of $808.40 million for the quarter, compared to analysts’ expectations of $810.21 million. Lumentum had a net margin of 17.61% and a return on equity of 24.81%. Lumentum’s quarterly revenue was up 90.1% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.57 earnings per share. Lumentum has set its Q4 2026 guidance at 2.850-3.050 EPS. Sell-side analysts anticipate that Lumentum Holdings Inc. will post 6.4 earnings per share for the current fiscal year.

Key Headlines Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: Zacks upgraded Lumentum to Rank #2 (Buy), citing improved earnings estimates and a more constructive outlook for the company’s profit growth. Lumentum (LITE) Is Up 6.3% After Zacks Upgrade on AI Data Center Optics Demand Shift
• Positive Sentiment: Multiple reports highlighted Lumentum’s growing role in AI data center optics, which is supporting investor optimism that demand for optical components could remain strong as AI infrastructure spending expands. LITE vs. APLD: Which AI Infrastructure Stock Offers Better Growth?
• Neutral Sentiment: UBS reportedly reaffirmed a Hold rating, which does not add a strong bullish catalyst but suggests analysts remain divided on the stock’s near-term upside. UBS Reaffirms Their Hold Rating on Lumentum Holdings (LITE)
• Negative Sentiment: One recent note said the broader AI optics trade cooled, with high-beta names like Lumentum seeing some profit-taking as investors rotated away from the group. Applied Optoelectronics Falls 12%, Coherent and Lumentum Slide as AI Optics Trade Cools

Insider Transactions at Lumentum

In related news, SVP Jae Kim sold 1,422 shares of Lumentum stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $1,356,516.90. Following the completion of the transaction, the senior vice president owned 32,333 shares in the company, valued at approximately $30,844,065.35. This trade represents a 4.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 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, CFO Wajid Ali sold 2,487 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $953.95, for a total value of $2,372,473.65. Following the sale, the chief financial officer directly owned 60,951 shares in the company, valued at $58,144,206.45. The trade was a 3.92% 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 90 days, insiders sold 41,260 shares of company stock worth $38,859,220. 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.