Wupen Yuen, president of global business units at Lumentum Holdings Inc. (NASDAQ: LITE), sold 1,500 common shares for approximately $1.28 million between August 24 and August 26, 2026.
The transactions were executed under a pre-arranged Rule 10b5-1 trading plan adopted by Yuen on May 19, 2026. The sale prices ranged from $824.24 to $882.15 per share. Following the disposals, Yuen retains direct ownership of 91,729 Lumentum shares.
Lumentum’s stock has risen sharply, closing at $939.03 on August 26, marking a 646% increase over the past 12 months. The company’s recent financial performance has exceeded expectations, with fourth-quarter fiscal 2026 revenue surpassing consensus by 2% and adjusted earnings per share beating estimates by $0.26. First-quarter guidance also topped projections, with revenue and EPS guidance exceeded by 8% and $0.51, respectively, driven by increased capital expenditures in artificial intelligence infrastructure.
Analysts remain divided on valuation. Wolfe Research maintained an Outperform rating, citing potential for mergers and acquisitions. TD Cowen raised its price target to $820 but kept a Hold rating due to broader business cycle concerns. Needham maintained a Buy rating with a $1,040 target, highlighting growth in AI optics. Mizuho raised its target to $1,140, citing strong demand for AI infrastructure and limited transceiver supply. BofA Securities lowered its target to $1,000 on valuation grounds but raised its 2027 and 2028 profit estimates by 19% each, with June quarter sales and EPS topping consensus by 2% and 9%, respectively.
