Lumen Technologies (NYSE:LUMN) Given New $6.00 Price Target at JPMorgan Chase & Co.

Key Points

• JPMorgan cut its price target on Lumen from $7 to $6 and maintained a neutral rating; the target implies 50.75% upside from the previous close.
• Lumen shares fell 11% to $3.98 on Thursday, near their 12-month low. Other analysts also lowered targets, and the consensus target is $6.53 with an overall “Reduce” rating.
• Quarterly adjusted loss of $0.14 per share was narrower than expected, but revenue of $2.71 billion fell short of estimates. Strategic revenue grew about 10%, while negative free cash flow and declining overall sales remained concerns.

Lumen Technologies (NYSE:LUMN - Get Free Report) had its target price decreased by stock analysts at JPMorgan Chase & Co. from $7.00 to $6.00 in a research report issued on Thursday, Benzinga reports. The brokerage currently has a "neutral" rating on the technology company's stock. JPMorgan Chase & Co.'s price objective would indicate a potential upside of 50.75% from the stock's previous close.

Other analysts also recently issued reports about the stock. TD Cowen reduced their price target on shares of Lumen Technologies from $9.00 to $8.00 and set a "hold" rating on the stock in a report on Thursday. Weiss Ratings reissued a "sell (d-)" rating on shares of Lumen Technologies in a report on Friday, July 17th. Moffett Nathanson upgraded Lumen Technologies from a "sell" rating to a "neutral" rating and set a $4.00 price objective for the company in a research report on Friday, October 30th. Wells Fargo & Company reduced their target price on Lumen Technologies from $7.50 to $5.00 and set an "equal weight" rating on the stock in a report on Thursday. Finally, The Goldman Sachs Group decreased their target price on Lumen Technologies from $7.25 to $5.00 and set a "neutral" rating on the stock in a research report on Thursday. Ten equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Reduce" and a consensus target price of $6.53.

Lumen Technologies Stock Down 11.0%

LUMN stock traded down $0.49 during midday trading on Thursday, hitting $3.98. The company's stock had a trading volume of 25,235,231 shares, compared to its average volume of 13,732,415. Lumen Technologies has a 12 month low of $3.84 and a 12 month high of $11.43. The firm has a market capitalization of $4.10 billion, a price-to-earnings ratio of -3.90 and a beta of 1.94. The company has a 50 day moving average of $5.66 and a two-hundred day moving average of $7.19.

Lumen Technologies (NYSE:LUMN - Get Free Report) last released its quarterly earnings data on Wednesday, November 4th. The technology company reported ($0.14) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.23) by $0.09. The company had revenue of $2.71 billion for the quarter, compared to the consensus estimate of $2.73 billion. On average, analysts anticipate that Lumen Technologies will post -0.54 earnings per share for the current fiscal year.

Institutional Trading of Lumen Technologies

Hedge funds have recently made changes to their positions in the business. New York Life Investment Management LLC bought a new stake in shares of Lumen Technologies in the 3rd quarter valued at about $785,000. Penn Capital Management Company LLC lifted its position in shares of Lumen Technologies by 6.8% in the 3rd quarter. Penn Capital Management Company LLC now owns 2,719,257 shares of the technology company's stock worth $15,257,000 after purchasing an additional 172,254 shares during the period. Fulcrum Asset Management LLP boosted its stake in shares of Lumen Technologies by 266.8% during the third quarter. Fulcrum Asset Management LLP now owns 151,727 shares of the technology company's stock valued at $841,000 after purchasing an additional 110,367 shares in the last quarter. Allspring Global Investments Holdings LLC boosted its stake in shares of Lumen Technologies by 9.4% during the third quarter. Allspring Global Investments Holdings LLC now owns 35,097 shares of the technology company's stock valued at $196,000 after purchasing an additional 3,009 shares in the last quarter. Finally, Ethic Inc. increased its holdings in Lumen Technologies by 103.3% during the third quarter. Ethic Inc. now owns 49,878 shares of the technology company's stock valued at $279,000 after buying an additional 25,340 shares during the period. 66.19% of the stock is currently owned by hedge funds and other institutional investors.

More Lumen Technologies News

Here are the key news stories impacting Lumen Technologies this week:

• Positive Sentiment: Strategic revenue grew about 10% and reached 55% of total revenue, reflecting demand for AI-related connectivity and Lumen’s Network-as-a-Service offerings. The company reaffirmed its full-year adjusted EBITDA guidance. Lumen Q3 earnings call highlights
• Positive Sentiment: Lumen’s adjusted loss of $0.14 per share was narrower than analysts’ estimates, offering a bright spot in an otherwise mixed quarter. Why Lumen Technologies Sank Today
• Neutral Sentiment: TD Cowen, Goldman Sachs and Wells Fargo lowered their price targets to $8, $5 and $5, respectively, while maintaining hold, neutral or equal-weight ratings. The targets remain above the stock’s cited $3.98 price, but the reductions signal more restrained expectations. TD Cowen rating
• Negative Sentiment: Revenue was approximately $2.71 billion, just below consensus, and reports noted a year-over-year decline. The shortfall and ongoing pressure on Lumen’s legacy business overshadowed strategic-revenue growth. Lumen Q3 adjusted loss narrows, revenue falls
• Negative Sentiment: Free cash flow turned negative, raising concerns about cash generation even as the company works toward its profitability goals. Together with declining overall sales, this helps explain the negative reaction to the results. Lumen Q3 earnings call highlights

About Lumen Technologies

Lumen Technologies, Inc is a communications and technology company that provides network, connectivity, cloud, cybersecurity and managed services primarily to businesses, government organizations and wholesale customers. Its offerings include fiber-based internet and data transport, software-defined networking, network security, unified communications, voice services, edge computing and related information technology solutions.

The company operates one of the largest enterprise fiber networks in the United States and also serves customers internationally through its global network and wholesale operations.

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