Intech Investment Management LLC significantly increased its investment in Lumentum Holdings Inc. by 87.6% during the second quarter of 2023. As reported in a disclosure to the Securities and Exchange Commission (SEC), the firm now holds 26,428 shares of the technology company, valued at approximately $2.51 million after acquiring an additional 12,338 shares during the quarter.
Other institutional investors have also adjusted their stakes in Lumentum. FNY Investment Advisers LLC acquired a new position worth about $38,000, while Skandinaviska Enskilda Banken AB purchased shares valued at approximately $25,000 in the first quarter. Additionally, SVB Wealth LLC and Hantz Financial Services Inc. increased their holdings, with Hantz growing its position by an impressive 224.4% during the second quarter.
Institutional investors now control 94.05% of Lumentum’s stock, reflecting a strong confidence in the company’s future.
Analyst Ratings and Stock Performance
Wall Street analysts have offered mixed ratings on Lumentum’s stock following its recent performance. Citigroup initiated coverage with a “buy” rating and a price target of $165.00. Mizuho also issued an “outperform” rating with a price target of $290.00. In contrast, Raymond James Financial downgraded its rating from “strong-buy” to “outperform” with a $220.00 target.
According to MarketBeat, Lumentum has received a consensus rating of “Moderate Buy” and an average price target of $196.88. Over the last few months, analysts have generally expressed optimism about the company’s growth potential, with one analyst even assigning a “Strong Buy” rating.
Insider Transactions and Financial Performance
Recent insider activity includes sales by Yuen Wupen, who sold 821 shares at an average price of $234.14, totaling approximately $192,228.94. Post-transaction, Wupen retains 96,720 shares valued at around $22.65 million. Similarly, Julia Suzanne Johnson, a board director, sold 10,000 shares for about $2.70 million, reducing her stake by 45.38%.
In total, insiders sold 37,965 shares valued at roughly $7.81 million over the past ninety days. It is important to note that corporate insiders own just 0.43% of the company’s stock.
Lumentum’s stock opened at $268.92 on November 4, 2023. The company has demonstrated strong financial performance, reporting earnings per share (EPS) of $1.10 for the quarter, exceeding the consensus estimate of $1.03. Revenue for the quarter was $533.80 million, surpassing expectations of $525.10 million. This reflects a remarkable 58.4% increase compared to the same period last year.
Company Overview
Lumentum Holdings Inc., headquartered in the Americas, specializes in manufacturing optical and photonic products. The company operates two primary segments: Optical Communications and Commercial Lasers, providing essential components that facilitate the transmission of video, audio, and data over high-capacity fiber optic cables.
As Lumentum continues to evolve in the competitive tech landscape, its robust financial performance and increased institutional investment position it as a key player in the optical communications sector.
