Jim Cramer bullish on LITE earnings

What happened: Jim Cramer expressed bullish sentiment towards Lumentum Holdings (LITE) on Mad Money, suggesting investors "buy" the stock ahead of its earnings. Meanwhile, the Wasatch Long/Short Alpha Fund saw its performance dampened by LITE's upswing in Q1 2026. Notably, hedge fund manager Leopold Aschenbrenner sold off his stake in LITE during the same period.

Market impact: Lumentum, a supplier of optical and photonic products, saw increased investor interest, driving its stock price up. This move affected the performance of funds holding LITE, such as the Wasatch Long/Short Alpha Fund. Aschenbrenner's bearish activity may indicate a shift in institutional sentiment towards the stock.

What to watch next: Lumentum's earnings report, scheduled for May 25, will provide insights into the company's performance and guidance. Additionally, any further changes in institutional holdings, as reported in SEC filings, will offer clues about LITE's future trajectory. Lastly, keep an eye on the broader tech sector, as any shifts in investor sentiment or market conditions could impact LITE's stock price.