Form 4: Lumentum Executive Reports Routine Stock Sales and Tax Withholding
Insider Transaction Report
Lumentum Holdings Inc. President of Cloud & Networking, Wupen Yuen, reported the sale of common stock under a Rule 10b5-1 plan and shares withheld for tax obligations.
Summary
- Wupen Yuen, President, Cloud & Networking at Lumentum Holdings Inc. (LITE), reported changes in beneficial ownership of common stock.
- On July 20, 2025, 442 shares of common stock were withheld by the Issuer at a price of $102.22 to satisfy income tax withholding and remittance obligations related to the vesting of restricted stock units.
- On July 21, 2025, 264 shares of common stock were sold at a price of $102.22 per share.
- On July 22, 2025, an additional 264 shares of common stock were sold at a price of $103.13 per share.
- The sales on July 21 and July 22, 2025, were executed pursuant to a pre-arranged Rule 10b5-1 trading plan adopted by the Reporting Person on February 11, 2025.
- Following these reported transactions, Wupen Yuen beneficially owns 80,038 shares of Lumentum Holdings Inc. common stock.
Sentiment
Score: 6
Explanation: The sentiment is neutral to slightly positive. While insider selling can be perceived negatively, the transactions were pre-planned under a Rule 10b5-1 plan, which indicates a lack of discretionary timing and is a positive governance practice. The tax withholding is a routine event.
Positives
- The sales were conducted under a Rule 10b5-1 trading plan, indicating pre-scheduled, non-discretionary transactions, which enhances transparency and mitigates concerns about opportunistic insider trading.
Negatives
- The disposition of 970 shares of common stock by a key executive, even if pre-planned, represents a reduction in insider ownership.
Industry Context
This filing is a routine disclosure of insider stock transactions and does not provide broader industry context or trends. It reflects an individual executive's pre-planned stock sales and tax-related share withholding.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Policy Implementation | The adoption and execution of a Rule 10b5-1 trading plan on February 11, 2025, demonstrates adherence to best practices for insider trading compliance, providing a pre-arranged structure for stock sales to avoid accusations of trading on material non-public information. | 02/11/2025 | Enhances transparency and reduces potential for insider trading concerns by pre-scheduling stock dispositions. |
Stakeholder Impact
- Shareholders: The disposition of a relatively small number of shares by an executive is unlikely to have a significant direct impact on the company's share price or overall shareholder value, especially given the pre-planned nature of the sales.
Key Dates
| Date | Description |
|---|---|
| 02/11/2025 | Date the Rule 10b5-1 trading plan was adopted by the Reporting Person. |
| 07/20/2025 | Date of transaction where 442 shares were withheld for tax obligations related to RSU vesting. |
| 07/21/2025 | Date of transaction where 264 shares were sold under a Rule 10b5-1 plan. |
| 07/22/2025 | Date of transaction where 264 shares were sold under a Rule 10b5-1 plan and the filing date of the Form 4. |
Keywords
Lumentum Holdings Inc., LITE, Form 4, insider trading, stock sale, executive compensation, Rule 10b5-1 plan, tax withholding, beneficial ownership
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