Diversify Advisory Services LLC Invests $2.44 Million in Lumentum Holdings Inc. $LITE

Diversify Advisory Services LLC acquired a new stake in Lumentum Holdings Inc. (NASDAQ:LITE) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 3,426 shares of the technology company’s stock, valued at approximately $2,439,000.

Several other hedge funds and other institutional investors have also modified their holdings of LITE. Hilltop National Bank raised its stake in Lumentum by 26.8% during the 2nd quarter. Hilltop National Bank now owns 71 shares of the technology company’s stock valued at $61,000 after purchasing an additional 15 shares during the last quarter. Sachetta LLC grew its position in Lumentum by 118.8% in the 1st quarter. Sachetta LLC now owns 35 shares of the technology company’s stock worth $25,000 after purchasing an additional 19 shares during the last quarter. Versant Capital Management Inc increased its holdings in shares of Lumentum by 39.5% during the 2nd quarter. Versant Capital Management Inc now owns 106 shares of the technology company’s stock worth $91,000 after purchasing an additional 30 shares during the period. Hilton Head Capital Partners LLC bought a new stake in shares of Lumentum in the first quarter valued at about $25,000. Finally, Abel Hall LLC grew its position in Lumentum by 5.5% during the first quarter. Abel Hall LLC now owns 693 shares of the technology company’s stock worth $487,000 after buying an additional 36 shares in the last quarter. Institutional investors and hedge funds own 94.05% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the company. JPMorgan Chase & Co. lifted their price objective on Lumentum from $1,165.00 to $1,280.00 and gave the stock an “overweight” rating in a report on Wednesday, August 12th. Loop Capital lifted their price target on shares of Lumentum from $900.00 to $1,400.00 and gave the stock a “buy” rating in a research note on Tuesday, May 5th. Craig Hallum increased their price objective on shares of Lumentum from $900.00 to $1,150.00 in a research note on Wednesday, May 6th. Morgan Stanley lifted their target price on shares of Lumentum from $900.00 to $1,000.00 and gave the company an “equal weight” rating in a research report on Wednesday, August 12th. Finally, UBS Group set a $820.00 target price on shares of Lumentum in a research note on Wednesday, August 12th. Thirteen equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, Lumentum has an average rating of “Moderate Buy” and an average target price of $1,044.67.

Key Stories Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

• Positive Sentiment: AI-driven growth remains the bullish case. Lumentum’s exposure to optical components used in AI data-center networks, along with expectations for rising margins and stronger fiscal 2027 earnings, continues to support the long-term growth narrative. Lumentum Stock Is Overvalued at 11.4X P/S: Should You Still Buy It?
• Positive Sentiment: Broker sentiment remains constructive. Analysts collectively assign Lumentum an average “Moderate Buy” rating, providing ongoing support despite the recent volatility. Lumentum Receives Average Rating of Moderate Buy
• Neutral Sentiment: Valuation is a central debate. At approximately 11.4 times sales, Lumentum trades at a demanding multiple after substantial multi-year gains. While a discounted-cash-flow analysis indicates potential upside, market-based valuation measures suggest the stock may already reflect considerable optimism. Lumentum Stock Looks Fully Priced Despite Cash Flow Upside
• Negative Sentiment: Risk aversion is weighing on optics stocks. Reports concerning Anthropic and a Wall Street Journal article have triggered a selloff across AI hardware names, with Lumentum among the affected optics companies. The move indicates investors are taking profits and questioning near-term AI spending or demand expectations. Optics Stocks Drop on Anthropic News
• Negative Sentiment: The recent rally has increased downside sensitivity. Lumentum had rallied alongside Coherent and AXT after indium phosphide price hikes, but the reversal shows how quickly sentiment can change when sector-wide AI concerns emerge. Optics Stocks Rally on Indium Phosphide Price Hikes

Insider Buying and Selling at Lumentum

In related news, Director Isaac Hosojiro Harris sold 1,416 shares of the company’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $1,000.08, for a total value of $1,416,113.28. Following the completion of the sale, the director owned 6,984 shares in the company, valued at approximately $6,984,558.72. This represents a 16.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Jae Kim sold 1,366 shares of the company’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $909.43, for a total value of $1,242,281.38. Following the completion of the sale, the senior vice president directly owned 45,973 shares of the company’s stock, valued at approximately $41,809,225.39. This trade represents a 2.89% 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 have sold 14,919 shares of company stock worth $13,293,529. 0.43% of the stock is currently owned by insiders.

Lumentum Stock Performance

Lumentum stock opened at $873.31 on Wednesday. The stock has a 50-day simple moving average of $811.58 and a 200 day simple moving average of $783.10. The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01. Lumentum Holdings Inc. has a 12-month low of $111.20 and a 12-month high of $1,085.68. The stock has a market capitalization of $67.94 billion, a price-to-earnings ratio of -10.62 and a beta of 1.50.

Lumentum (NASDAQ:LITE) last released its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, beating the consensus estimate of $2.97 by $0.26. The business had revenue of $1.01 billion for the quarter, compared to analysts’ expectations of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. Lumentum’s revenue was up 109.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. On average, research analysts anticipate that Lumentum Holdings Inc. will post 16.97 earnings per share for the current fiscal year.

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.