Form 4: Lumentum Holdings Director Penny Herscher Sells Shares Under 10b5-1 Plan

Director Penny Herscher of Lumentum Holdings Inc. sold a total of 2,167 shares of common stock across multiple transactions on November 18th and 19th, 2024, under a pre-arranged 10b5-1 trading plan.

Summary

• Penny Herscher, a director at Lumentum Holdings Inc., sold 2,167 shares of common stock on November 18th and 19th, 2024.
• The sales were executed under a Rule 10b5-1 trading plan adopted on May 20, 2024.
• The transactions occurred across multiple trades with varying prices, with weighted average prices reported for each day.
• On November 18th, 741 shares were sold at an average price of $80.6896, and 884 shares were sold at an average price of $81.4331.
• On November 19th, 126 shares were sold at an average price of $80.261, 54 shares at $81.4324, and 362 shares at $82.5179.
• Following these transactions, Ms. Herscher directly owns 6,310 shares and indirectly owns 39,378 shares through a living trust.

Sentiment

Score: 5

Explanation: The document is a routine SEC filing detailing stock sales by a director under a pre-arranged plan. It doesn't indicate any positive or negative sentiment about the company's performance or future prospects.

Risks

• The sales by a director could be perceived negatively by the market, potentially impacting the stock price.
• The reliance on a 10b5-1 plan suggests a pre-determined strategy for selling shares, which may not reflect current market conditions or the director's personal outlook on the company.

Industry Context

This is a routine filing related to insider trading activity. It is common for directors and officers to use 10b5-1 plans to manage their stock sales, which helps avoid accusations of trading on non-public information. The sales themselves do not necessarily indicate a negative outlook on the company.

Comparison to Industry Standards

• The use of a 10b5-1 trading plan is a common practice among corporate insiders at publicly traded companies, including those in the technology sector like Lumentum.
• Similar filings are regularly seen from directors and officers at companies like Coherent, II-VI, and Infinera, which are Lumentum's competitors in the photonics and optical communications space.
• The volume of shares sold is relatively small compared to the total outstanding shares of Lumentum, which is typical for routine insider sales under a 10b5-1 plan.

Stakeholder Impact

• The stock sales by a director could potentially cause a slight negative reaction from shareholders, although the use of a 10b5-1 plan mitigates this concern.

Key Dates

Keywords

Lumentum Holdings, Penny Herscher, insider trading, Form 4, stock sales, Rule 10b5-1, director, equity securities