Insider Selling: Lumentum (NASDAQ:LITE) Director Sells 4,000 Shares of Stock

February 14, 2026 by InsiderTrades.com

Key Points

Vincent Retort sold 45,026 shares of Lumentum on Feb. 12 at an average price of $591.32 for roughly $26.6M, reducing his stake by about 30.5% to 102,455 shares (SEC Form 4 filed).
Lumentum delivered a beat-and-raise quarter — Q4 non‑GAAP EPS $1.67 vs. $1.41 expected and revenue $665.5M (up 65.5% YoY) with raised forward expectations driven by AI/data‑center optics demand, though some analysts warn of valuation and manufacturing/timing risks.

Lumentum Holdings Inc. (NASDAQ:LITE - Get Free Report) Director Penny Herscher sold 4,000 shares of the firm's stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $597.29, for a total transaction of $2,389,160.00. Following the completion of the transaction, the director directly owned 2,057 shares of the company's stock, valued at approximately $1,228,625.53. The trade was a 66.04% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website.

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Penny Herscher also recently made the following trade(s):

On Friday, February 6th, Penny Herscher sold 4,849 shares of Lumentum stock. The stock was sold at an average price of $535.48, for a total transaction of $2,596,542.52.

Lumentum Stock Performance

Shares of LITE stock opened at $562.74 on Friday. Lumentum Holdings Inc. has a 52 week low of $45.65 and a 52 week high of $603.83. The firm has a 50 day moving average of $393.19 and a two-hundred day moving average of $253.80. The company has a quick ratio of 0.45, a current ratio of 0.61 and a debt-to-equity ratio of 0.06. The stock has a market capitalization of $40.18 billion, a PE ratio of 172.62 and a beta of 1.51.

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Lumentum (NASDAQ:LITE - Get Free Report) last released its earnings results on Tuesday, February 3rd. The technology company reported $1.67 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.41 by $0.26. Lumentum had a return on equity of 17.27% and a net margin of 11.95%.The firm had revenue of $665.50 million during the quarter, compared to analyst estimates of $646.74 million. During the same period last year, the business posted $0.42 earnings per share. Lumentum's revenue was up 65.5% compared to the same quarter last year. Lumentum has set its Q3 2026 guidance at 2.150-2.350 EPS. On average, research analysts predict that Lumentum Holdings Inc. will post 0.03 EPS for the current fiscal year.

Hedge Funds Weigh In On Lumentum

A number of institutional investors have recently modified their holdings of LITE. Parallel Advisors LLC boosted its stake in shares of Lumentum by 16.0% during the fourth quarter. Parallel Advisors LLC now owns 326 shares of the technology company's stock worth $120,000 after buying an additional 45 shares during the period. Allworth Financial LP raised its stake in Lumentum by 6.4% during the 3rd quarter. Allworth Financial LP now owns 784 shares of the technology company's stock valued at $128,000 after acquiring an additional 47 shares during the last quarter. UMB Bank n.a. lifted its position in Lumentum by 5.2% during the 4th quarter. UMB Bank n.a. now owns 968 shares of the technology company's stock worth $357,000 after acquiring an additional 48 shares during the period. Oregon Public Employees Retirement Fund grew its position in Lumentum by 0.4% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 14,130 shares of the technology company's stock valued at $5,208,000 after buying an additional 60 shares during the last quarter. Finally, Northwestern Mutual Investment Management Company LLC raised its position in Lumentum by 0.4% during the 3rd quarter. Northwestern Mutual Investment Management Company LLC now owns 15,559 shares of the technology company's stock worth $2,532,000 after buying an additional 64 shares during the last quarter. 94.05% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Coherent gains from the AI chip boom

A number of brokerages recently issued reports on LITE. Raymond James Financial cut shares of Lumentum from a "strong-buy" rating to an "outperform" rating and set a $220.00 price target for the company. in a report on Friday, October 31st. Wall Street Zen downgraded shares of Lumentum from a "buy" rating to a "hold" rating in a research note on Saturday, November 1st. Citigroup increased their target price on Lumentum to $560.00 and gave the company a "buy" rating in a report on Thursday, February 5th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Lumentum in a report on Monday, December 29th. Finally, Mizuho upped their price objective on Lumentum to $525.00 and gave the stock an "outperform" rating in a research report on Wednesday, February 4th. Two analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $444.94.

Check Out Our Latest Stock Analysis on LITE

Key Stories Impacting Lumentum

Here are the key news stories impacting Lumentum this week:

Positive Sentiment: Beat-and-raise quarter: Lumentum reported a large beat — non-GAAP EPS of $1.67 and revenue roughly $665.5M (up ~65% YoY) with an expanding optical circuit switch backlog and raised forward expectations, supporting the growth narrative for AI/data-center optics. Strong Earnings Momentum and Investor Optimism Lifted Lumentum Holdings (LITE) in Q4
Positive Sentiment: AI/optics tailwinds and bullish media coverage are amplifying enthusiasm: multiple outlets highlight Lumentum as a key supplier for ultra-high-speed AI data links and project continued rapid revenue/earnings growth. Prediction: This Could Be the Best-Performing AI Chip Stock of 2026
Positive Sentiment: Momentum trade and price action: LITE recently rallied on optics/AI rotation (coverage notes a near‑8% lift during the AI optics boom), which has attracted short‑term momentum buyers. Lumentum Leaps Nearly 8% During AI Optics Boom
Neutral Sentiment: Analyst view vs. valuation: Analysts remain generally bullish on fundamentals and project sharp earnings growth, but some coverage flags valuation concerns — consensus targets in some places are below the current share price, suggesting limited upside for some investors. 3 High-Growth Unknowns in Photonics That Are Vital for AI
Neutral Sentiment: Operational notes: Coverage mentions strong backlog but also some manufacturing/backend bottlenecks to navigate — a potential timing risk for shipment/gross-margin improvement. 3 High-Growth Unknowns in Photonics That Are Vital for AI
Negative Sentiment: Large insider selling: Director Penny Herscher sold 4,000 shares (~$2.39M) on Feb. 12; the SEC Form 4 is filed. Insider sales of this size after a big run can signal profit-taking and increase selling pressure. Penny Herscher Form 4
Negative Sentiment: Material insider sale by senior insider: Vincent Retort sold 45,026 shares (~$26.6M) on Feb. 12, reducing his holdings by ~30%. That large, public sale is likely contributing to downward pressure and investor caution. Vincent Retort Form 4

About Lumentum

(Get Free Report)

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.