Lumen Technologies, Inc. (NYSE:LUMN) Stock Rated "Reduce" by Wall Street Brokerages

Key Points

• Analysts are broadly cautious: Lumen received a consensus “Reduce” rating from 11 brokerages—10 Hold and one Sell—with an average 12-month price target of $6.19. Several firms recently cut their targets, including Goldman Sachs and Wells Fargo, both to $5.
• Quarterly results were mixed: Lumen’s earnings per share loss of $0.14 was better than analysts’ expected $0.23 loss, while revenue of $2.71 billion fell short of the $2.73 billion consensus.
• Company insiders bought shares: CEO Kathleen Johnson purchased 100,000 shares for about $397,000, doubling her stake, and director Michelle Goldberg bought 25,000 shares for about $97,750.

Shares of Lumen Technologies, Inc. (NYSE:LUMN - Get Free Report) have been assigned a consensus rating of "Reduce" from the eleven brokerages that are covering the firm, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating and ten have given a hold rating to the company. The average 12 month price objective among brokerages that have covered the stock in the last year is $6.19.

LUMN has been the subject of a number of recent research reports. Wall Street Zen upgraded shares of Lumen Technologies from a "sell" rating to a "hold" rating in a report on Sunday, August 9th. The Goldman Sachs Group reduced their price target on shares of Lumen Technologies from $7.25 to $5.00 and set a "neutral" rating on the stock in a research note on Thursday, November 5th. Wells Fargo & Company dropped their price objective on shares of Lumen Technologies from $7.50 to $5.00 and set an "equal weight" rating for the company in a report on Thursday, November 5th. Moffett Nathanson raised shares of Lumen Technologies from a "sell" rating to a "neutral" rating and set a $4.00 target price on the stock in a report on Friday, October 30th. Finally, TD Cowen reduced their price objective on shares of Lumen Technologies from $9.00 to $8.00 and set a "hold" rating for the company in a research report on Thursday, November 5th.

Lumen Technologies Price Performance

NYSE:LUMN opened at $4.32 on Tuesday. The firm has a market cap of $4.46 billion, a price-to-earnings ratio of -4.24 and a beta of 1.94. Lumen Technologies has a 1-year low of $3.84 and a 1-year high of $11.39. The company has a 50 day moving average price of $5.54 and a 200-day moving average price of $7.13.

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

Insider Buying and Selling

In related news, CEO Kathleen E. Johnson acquired 100,000 shares of the firm's stock in a transaction that occurred on Friday, November 6th. The shares were purchased at an average price of $3.97 per share, with a total value of $397,000.00. Following the completion of the acquisition, the chief executive officer owned 200,000 shares in the company, valued at approximately $794,000. This represents a 100.00% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Michelle J. Goldberg bought 25,000 shares of the stock in a transaction on Friday, November 6th. The stock was purchased at an average cost of $3.91 per share, for a total transaction of $97,750.00. Following the acquisition, the director directly owned 101,591 shares of the company's stock, valued at $397,220.81. The trade was a 32.64% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 2.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of LUMN. Ascentis Independent Advisors acquired a new position in shares of Lumen Technologies in the first quarter valued at approximately $27,000. Versant Capital Management Inc boosted its holdings in Lumen Technologies by 90.3% in the second quarter. Versant Capital Management Inc now owns 3,920 shares of the technology company's stock worth $30,000 after purchasing an additional 1,860 shares during the period. Trust Asset Management LLC bought a new position in shares of Lumen Technologies during the second quarter valued at approximately $34,000. Triumph Capital Management grew its position in shares of Lumen Technologies by 2,110.2% during the second quarter. Triumph Capital Management now owns 5,614 shares of the technology company's stock worth $43,000 after acquiring an additional 5,360 shares during the last quarter. Finally, Global Retirement Partners LLC acquired a new stake in Lumen Technologies in the 2nd quarter valued at approximately $45,000. 66.19% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Lumen Technologies

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

• Positive Sentiment: CEO Kathleen Johnson bought 100,000 shares for about $397,000, doubling her position, and director Michelle J. Goldberg bought 25,000 shares for about $97,750. The purchases may signal confidence in Lumen, though they do not change the company’s fundamentals. CEO purchase filing Director purchase filing
• Positive Sentiment: On its Q3 earnings call, management pointed to growing demand for AI networking and a 10% year-over-year increase in strategic sales. Lumen also expanded its Microsoft collaboration to help enterprises connect applications and data with Azure AI services. Q3 earnings call Microsoft AI connectivity collaboration
• Neutral Sentiment: Analyst views remain mixed: TD Cowen maintained a Hold rating, while other coverage described disagreement on the stock. Some commentary argues Lumen may be undervalued based on future cash flow, but that view depends on the company delivering on its outlook. TD Cowen rating Cash flow valuation commentary
• Negative Sentiment: Citigroup, TD Cowen, and JPMorgan reportedly reduced their price targets, adding pressure to sentiment. The reports provided here do not specify the revised targets. Citigroup price target reduction TD Cowen price target trim JPMorgan price target cut
• Negative Sentiment: Q3 revenue of $2.72 billion was slightly below consensus, and Lumen reported a $265 million net loss. The strategic-sales growth is encouraging, but investors still face execution and profitability risks. Q3 results and call

About Lumen Technologies

Lumen Technologies is a telecommunications and technology company that provides network and digital services primarily to businesses, government agencies, and wholesale customers. Its offerings include fiber and internet connectivity, private networking, voice and collaboration services, cloud connectivity, and managed security solutions.

The company serves customers across North America and in international markets through its fiber network and related technology platforms. Lumen has shifted its focus toward enterprise services in recent years, including after selling consumer and local-exchange operations in several states.

Lumen was known as CenturyLink until adopting its current name in 2020.

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