Lumen Technologies (NYSE:LUMN) Stock Price Up 7.4% - What's Next?

Lumen Technologies, Inc. (NYSE:LUMN) saw its stock price rise by 7.4% in trading on Wednesday. The stock reached a high of $5.86 before closing at $5.89. During the trading session, approximately 4,417,680 shares changed hands, which is a significant drop of 44% compared to its average daily volume of 7,885,958 shares. The previous closing price for LUMN was $5.48.

Analyst Predictions for Lumen Technologies

Recent reports from Wall Street analysts have focused on Lumen Technologies. Notably, TD Cowen reduced their target price from $7.00 to $6.00 while maintaining a "hold" rating for the stock as of November 6th. Citigroup increased their target price from $6.50 to $8.00 and assigned a "neutral" rating on November 29th. The Royal Bank of Canada also reiterated a "sector perform" rating on December 20th, adjusting its target price from $4.00 to $4.25. Additionally, Goldman Sachs raised its target from $4.50 to $5.00, also giving a "neutral" assessment. Currently, the consensus rating stands at "Hold" with an average target price of $4.66, as three analysts recommend selling the stock while six suggest retaining it.

Recent Performance and Financial Health

Lumen Technologies has a market capitalization of $6.01 billion, a price-to-earnings (P/E) ratio of -2.73, and a beta of 1.28, indicating its volatility compared to the market. The company's current and quick ratios are both at 1.20, and its debt-to-equity ratio is notably high at 53.05. Over its 50-day moving average, the stock has performed at $6.30, and the 200-day moving average sits at $5.72.

The company reported its quarterly earnings results on November 5th, revealing earnings per share of ($0.13), which was lower than the consensus estimate of ($0.09) by $0.04. Lumen Technologies experienced a negative net margin of 16.06% and a return on equity of -49.74%. The revenue for the quarter was recorded at $3.22 billion compared to the expected $3.21 billion; however, this number reflects an 11.5% year-over-year decline. Analysts predict that Lumen Technologies will post an EPS of -0.38 for the current fiscal year.

Institutional Ownership Trends

Institutional investors have recently changed their stakes in Lumen Technologies. Geode Capital Management increased its holdings by 1.7%, now owning 23,344,313 shares valued at $165,776,000 after acquiring 383,693 additional shares. Hennessy Advisors entered a new position worth $45,089,000 in the fourth quarter. Millennium Management raised its stake by 129.8% during the second quarter, owning 7,854,906 shares valued at $8,640,000 after a significant increase of 4,436,710 shares. AQR Capital Management increased its holdings by over 52%, owning 3,621,874 shares valued at $3,712,000. Furthermore, Connor Clark & Lunn Investment Management raised its position by 9.9%, reaching 3,265,415 shares valued at $23,184,000. Overall, institutional investors hold a combined 66.19% of the company's shares.

About Lumen Technologies

Lumen Technologies, Inc. is a facilities-based technology and communications provider that offers a wide range of integrated products and services for both business and residential clients in the U.S. and internationally. The company's operations are split into two segments: Business and Mass Markets. Its offerings include dark fiber, edge cloud services, internet protocol services, managed security, software-defined wide area networks, and more.

Final Thoughts on Investment

Before considering a purchase of Lumen Technologies stock, investors are encouraged to evaluate current analyst opinions. Recent analysis has indicated a general caution regarding the company, with notable analysts recommending other stocks over Lumen. As market conditions evolve, keeping an eye on Lumen Technologies will be crucial for discerning whether it becomes a viable investment opportunity moving forward.

Lumen, Stock, Analysis