Wellington Management Group LLP, a renowned investment firm, has recently reduced its stake in Lumentum Holdings Inc. This article will delve into the details of this transaction, provide an overview of both entities, and analyze the potential implications of this move.
Profile: Wellington Management Group LLP
Wellington Management Group LLP is a privately owned investment manager, established in 1928 by Walter Morgan. The firm has a rich history of resilience and innovation, having survived the stock market crash a year after its inception and subsequently growing into a global entity. Today, Wellington Management Group oversees over $900 billion in total assets from more than 2000 clients across 50+ countries. The firm employs nearly 600 investment professionals and offers over 200 investment approaches. Its top holdings include Apple Inc(AAPL, Financial), Alphabet Inc(GOOGL, Financial), Microsoft Corp(MSFT, Financial), Pfizer Inc(PFE, Financial), and UnitedHealth Group Inc(UNH, Financial). The firm's primary sectors are Healthcare and Technology. 
Transaction Details
On July 31, 2023, Wellington Management Group LLP reduced its stake in Lumentum Holdings Inc by 69%, selling 3,466,992 shares at a price of $52.36 per share. This transaction reduced the firm's total holdings in Lumentum to 1,557,751 shares, representing 2.27% of the company's shares and 0.02% of Wellington's portfolio. The transaction had a -0.04% impact on the firm's portfolio.
Profile: Lumentum Holdings Inc
Lumentum Holdings Inc, based in California, is a technology firm that provides optical and photonic products. The company's offerings are used in telecommunications networking equipment and commercial lasers for manufacturing, inspection, and life-science lab uses. Lumentum's segments include Lasers and Optical Communications (OpComms). The company has a market cap of $3.43 billion and its stock is currently priced at $49.91. 
Stock Analysis
Lumentum's stock has a GF Score of 79/100, indicating good outperformance potential. The company's Financial Strength is ranked 5/10, while its Profitability Rank is 6/10. The Growth Rank is 7/10, and the GF Value Rank is 8/10. However, the company's Momentum Rank is only 4/10, indicating a lack of positive momentum in the stock's price.
Other Gurus' Involvement
Wellington Management Group LLP is not the only investment firm with a stake in Lumentum Holdings Inc. Other notable gurus holding Lumentum's stock include Joel Greenblatt (Trades, Portfolio), Keeley-Teton Advisors, LLC (Trades, Portfolio), and Jefferies Group (Trades, Portfolio). Fisher Asset Management, LLC holds the largest stake in Lumentum.
Conclusion
In conclusion, Wellington Management Group LLP's decision to reduce its stake in Lumentum Holdings Inc is a significant move that may have implications for both entities. While Lumentum's stock shows good potential for outperformance, its lack of momentum may be a concern. However, the continued interest from other investment gurus suggests that Lumentum remains an attractive investment. As always, investors are advised to conduct their own thorough research before making any investment decisions.
