SAN JOSE, CA—Matthew Joseph Sepe, the Chief Accounting Officer of Lumentum Holdings Inc . (NASDAQ:LITE), has sold a significant portion of his holdings in the company. According to a recent SEC filing, Sepe sold 8,172 shares of Lumentum's common stock on November 13, 2024. The shares were sold at an average price of $87.599, generating a total value of approximately $715,859.
Following the transaction, Sepe retains ownership of 21,138 shares in the company. The sale was executed in multiple trades with prices ranging from $87.52 to $87.75, as noted in the filing's footnotes.
In other recent news, Lumentum Holdings has reported a successful start to fiscal year 2025, with its Q1 revenue exceeding guidance at $336.9 million and non-GAAP earnings per share (EPS) of $0.18. This performance was driven by a record number of Datacom laser chip orders, primarily due to increased demand from cloud and AI customers. The company plans to start shipping to a new hyperscale transceiver customer in the first half of the calendar year 2025 and has a robust pipeline of cloud engagements.
Looking ahead, Lumentum anticipates double-digit sequential revenue growth in Q2, with an aim to reach a quarterly revenue target of $500 million by the end of calendar 2025. This growth is expected to continue into 2026 and 2027. The company's Q2 fiscal 2025 revenue is projected to be between $380 million and $400 million, with non-GAAP operating margins forecasted between 5.5% to 7.5%.
In addition to these developments, Lumentum is expanding its production capacity outside China, notably in Thailand, to meet increased demand and improve supply chain resilience. The company is also focusing on vertical integration and enhancing its telecom product offerings. Despite these positive strides, it's worth noting that the Industrial Tech segment experienced a year-over-year decline of 38%.
InvestingPro Insights
The recent sale by Lumentum's Chief Accounting Officer comes at a time when the company's stock is showing strong momentum. According to InvestingPro data, Lumentum's shares have seen a remarkable 62.9% price total return over the past three months and an impressive 88.59% return over the past year. This performance aligns with an InvestingPro Tip indicating that Lumentum has delivered a high return over the last year.
The stock is currently trading near its 52-week high, with the price at 94.91% of its highest point over the past year. This strength is further underscored by another InvestingPro Tip suggesting that the stock's Relative Strength Index (RSI) indicates it may be in overbought territory, potentially signaling investor enthusiasm.
Despite the positive price action, it's worth noting that Lumentum is not currently profitable, with a negative P/E ratio of -10.37. However, analysts are optimistic about the company's prospects, with an InvestingPro Tip revealing that 15 analysts have revised their earnings upwards for the upcoming period.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Lumentum, providing deeper insights into the company's financial health and market position.
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