Lumen Technologies (NYSE:LUMN) Price Target Lowered to $7.25 at The Goldman Sachs Group

Key Points

• Goldman Sachs lowered Lumen Technologies’ price target from $8.50 to $7.25 while maintaining a “neutral” rating, implying 18.4% upside from the prior close. The analyst consensus remains cautious, with an average “Reduce” rating and an $8.11 target.
• Lumen’s latest quarter beat expectations, reporting an adjusted loss of $0.07 per share versus the $0.13 consensus estimate and revenue of $2.81 billion versus $2.74 billion expected. However, revenue declined 9.3% year over year and the company remained unprofitable.
• Shares fell to $6.12, while strategic revenue grew 14.1% as Lumen expands its digital, cloud and AI networking services. Investors remain concerned that this growth has not yet offset declines in the company’s legacy business.

Lumen Technologies (NYSE:LUMN - Get Free Report) had its target price cut by equities research analysts at The Goldman Sachs Group from $8.50 to $7.25 in a research note issued to investors on Wednesday,Benzinga reports. The firm currently has a "neutral" rating on the technology company's stock. The Goldman Sachs Group's price objective would indicate a potential upside of 18.41% from the stock's previous close.

LUMN has been the subject of several other research reports. Weiss Ratings reiterated a "sell (d-)" rating on shares of Lumen Technologies in a research report on Friday, July 17th. Zacks Research cut shares of Lumen Technologies from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, May 5th. Wall Street Zen cut Lumen Technologies from a "hold" rating to a "sell" rating in a research note on Saturday. Wells Fargo & Company cut their target price on Lumen Technologies from $9.00 to $7.50 and set an "equal weight" rating on the stock in a research note on Wednesday. Finally, TD Cowen upped their price target on Lumen Technologies from $8.00 to $9.00 and gave the company a "hold" rating in a research note on Wednesday, May 6th. Nine investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Lumen Technologies has an average rating of "Reduce" and a consensus price target of $8.11.

Lumen Technologies Price Performance

Shares of NYSE:LUMN traded down $0.59 during midday trading on Wednesday, reaching $6.12. The company's stock had a trading volume of 14,275,066 shares, compared to its average volume of 13,551,638. Lumen Technologies has a fifty-two week low of $3.63 and a fifty-two week high of $11.95. The business's fifty day simple moving average is $7.70 and its 200-day simple moving average is $7.88. The company has a market capitalization of $6.31 billion, a P/E ratio of -3.51 and a beta of 1.78.

Lumen Technologies (NYSE:LUMN - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The technology company reported ($0.07) EPS for the quarter, beating the consensus estimate of ($0.13) by $0.06. The company had revenue of $2.81 billion for the quarter, compared to the consensus estimate of $2.74 billion. Lumen Technologies's revenue for the quarter was down 9.3% compared to the same quarter last year. During the same period last year, the company earned ($0.03) earnings per share. On average, analysts forecast that Lumen Technologies will post -0.39 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Kemnay Advisory Services Inc. acquired a new stake in Lumen Technologies in the 4th quarter valued at approximately $25,000. Ascentis Independent Advisors acquired a new stake in shares of Lumen Technologies in the first quarter valued at approximately $27,000. International Assets Investment Management LLC acquired a new position in Lumen Technologies during the fourth quarter worth $30,000. Versant Capital Management Inc boosted its stake in shares of Lumen Technologies by 90.3% during the 2nd quarter. Versant Capital Management Inc now owns 3,920 shares of the technology company's stock worth $30,000 after buying an additional 1,860 shares during the last quarter. Finally, Trust Asset Management LLC bought a new position in Lumen Technologies in the second quarter valued at approximately $34,000. 66.19% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Lumen Technologies

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

• Positive Sentiment: Lumen reported a second-quarter adjusted loss of $0.07 per share, narrower than analysts’ estimates of approximately $0.13–$0.15, while revenue of $2.81 billion exceeded expectations of $2.74 billion. Free cash flow turned positive, and the company maintained its full-year outlook, including its $1.9 billion–$2.1 billion free-cash-flow target. Lumen Posts Narrower-Than-Expected Q2 Loss, Revenues Drop Y/Y
• Positive Sentiment: The company’s strategic revenue increased 14.1% and now represents more than half of its business, supported by accelerating Network-as-a-Service adoption and the Alkira acquisition. This progress reinforces Lumen’s shift toward higher-margin digital, cloud and AI networking services. Lumen beats revenue estimates on strong digital networking demand
• Positive Sentiment: Lumen appointed John M. Hinshaw to its board, adding experience from HSBC, Hewlett-Packard, Boeing and Verizon Wireless in technology, security, operations and digital transformation. Lumen Appoints John M. Hinshaw to Board
• Neutral Sentiment: Management emphasized that it is still working to quantify Alkira’s contribution and plans to provide more detailed revenue guidance with its 2027 outlook, leaving some uncertainty around the pace of the transformation.
• Negative Sentiment: Despite the earnings beat, total revenue fell 9.3% year over year to $2.81 billion, while legacy-business declines continue to pressure EBITDA and the company posted a net loss. Investors may be concerned that growth in strategic services is not yet offsetting the broader business contraction.
• Negative Sentiment: Wells Fargo lowered its LUMN price target from $9.00 to $7.50 and assigned an “equal weight” rating. The reduced target likely reinforced a cautious tone around Lumen’s execution, legacy wind-down and valuation. Wells Fargo Lumen Analyst Action

Lumen Technologies Company Profile

Lumen Technologies is a multinational technology company specializing in integrated network, edge cloud, security and collaboration services for enterprise and public sector clients. The company's core offerings include high-capacity fiber and IP-based connectivity, managed edge computing solutions designed to accelerate applications and data processing closer to end users, and cybersecurity services ranging from DDoS protection to unified threat management. Through its unified portfolio, Lumen enables organizations to support digital transformation initiatives, modernize infrastructure and enhance operational resilience.

Leveraging one of the largest fiber footprints in North America, as well as infrastructure in Latin America and parts of Europe, Lumen connects customers across more than 60 countries.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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