In the third quarter, Ethic Inc. trimmed its position in Lumentum Holdings by 29.4%, selling 3,725 shares and ending the period with 8,939 shares valued at approximately $1.45 million. This reduction follows a period of strong photonics demand, suggesting Ethic Inc. is reallocating capital despite Lumentum’s leadership in high-speed optical communications components.

Several other funds initiated or expanded positions during the same quarter. Three Seasons Wealth LLC opened a position worth $720,000, while 180 Wealth Advisors LLC and Yeomans Consulting Group Inc. established new stakes of $259,000 and $349,000 respectively. Highland Capital Management increased its footprint with $2.33 million invested in new shares. Meanwhile, Blue Trust Inc. added 192 shares, boosting its holding to 3,630 shares valued at $591,000. Overall, 94.05% of Lumentum’s shares remain in the hands of hedge funds and institutional investors.

Lumentum reported third-quarter EPS of $1.10, exceeding consensus by $0.07, on revenue of $533.8 million versus estimates of $525.1 million. Revenue grew 58.4% year-over-year, driven by robust demand for tunable lasers and coherent optical engines. The company’s net margin reached 6.11%, and return on equity stood at 4.62%. Management set Q2 fiscal 2026 EPS guidance between $1.30 and $1.50, underscoring confidence in sustained growth across data-center and telecom segments.

Insiders have sold 28,612 shares totaling $7.32 million over the past quarter, with notable transactions by Directors Julia Johnson and Isaac Harris reducing their positions by over 40%. Despite these disposals, analyst consensus remains constructive: of 21 recent ratings, two are Strong Buy, thirteen are Buy and six are Hold, yielding an average rating of Moderate Buy and a consensus target near $222. Analysts cite recovery in optical networking spend and Lumentum’s broad product portfolio as key drivers.