Lumentum President Sells 1,500 Shares
Key Points
The transactions involved 1,500 shares at an average $912.33 per share, totaling ~$1.4 million.
The traded shares were equal to 1% of the stake held before the filing.
The activity was limited to direct ownership, leaving the insider with 117,627 shares.
This sale was executed under a Rule 10b5-1 plan, which indicates a routine liquidation.
Wupen Yuen, President, Global Bus. Units at Lumentum Holdings Inc. (NASDAQ:LITE), sold 1,500 shares of common stock between Aug. 28, 2026, and Sept. 1, 2026. SEC Form 4 filing
Transaction summary
| Metric | Value |
|---|---|
| Transaction value | ~$1.4 million |
| Shares sold | 1,500 |
| Post-transaction shares (directly held) | 117,627 |
| Post-transaction value | $102.21 million |
Transaction value based on SEC Form 4 weighted average sale price ($912.33); post-transaction value based on September 01, 2026, market close ($868.95).
Key questions
- What was the motivation behind this transaction?
The sale was executed under a Rule 10b5-1 trading plan that Wupen Yuen adopted on May 19, 2026. Such plans allow insiders to schedule stock sales in advance to avoid the appearance of trading on material non-public information, identifying this as routine portfolio management. - What is the current market value of the insider's remaining equity?
As of the Sept. 1, 2026, market close of $868.95, the remaining direct holding of 117,627 shares was valued at $102.21 million. This equity stake represents approximately 0.1500% of the company. - How has the stock performed relative to this trade?
The insider sold shares at multiple prices between Aug. 28, 2026, and Sept. 1, 2026, ranging from $895 to $940.95. The stock delivered a 554% total return over the 12 months ending on the transaction date of Sept. 1, 2026. - Does the insider maintain other forms of equity participation?
The reporting owner currently holds no indirect positions through trusts or other entities, and no derivative securities were reported in this filing. All current equity participation remains concentrated in direct common stock holdings.
Company Overview
| Metric | Value |
|---|---|
| Share Price (as of market close 2026-09-01) | $868.95 |
| Market Capitalization | $76.9 billion |
| Revenue (TTM) | $3.0 billion |
| Net Income (TTM) | -$6.9 billion |
Company Snapshot
- Lumentum Holdings designs and manufactures optical and photonic products through two principal business segments: Optical Communications, which supplies components, modules, and subsystems for transmitting video, audio, and data across networks, and Commercial Lasers, which serves industrial and commercial applications.
- The company generates revenue by developing and selling advanced optical and photonic technologies to telecommunications infrastructure providers, data center operators, and industrial manufacturers who require high-performance transmission and laser solutions.
- Lumentum's primary customers include major telecommunications carriers, cloud computing providers, and industrial equipment manufacturers globally, with operations spanning the Americas, Asia-Pacific, Europe, the Middle East, and Africa.
Lumentum Holdings is a global leader in optical and photonic product manufacturing with a market capitalization of $67 billion and TTM revenue of $3 billion.
The company leverages advanced photonic technologies to address critical infrastructure needs in telecommunications and industrial markets, positioning itself as a critical supplier to major network operators and data center providers worldwide.
What this transaction means for investors
This sale shouldn't concern investors. It represented a small percentage of the insider's stake in the company's stock. Moreover, it was executed under a Rule 10b5-1 plan, indicating it was for personal financial management purposes.
Importantly, the company is seeing tremendous growth. TTM revenue surged 83% year over year to $3 billion amid the increased spending on data centers to support AI demand.
Management's guidance calls for revenue to increase 130% year over year for the fiscal first quarter of 2027. Analysts expect robust earnings growth to continue for at least the next few years, while the stock trades at a forward earnings multiple of 44x.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lumentum. The Motley Fool has a disclosure policy.