Lumen Technologies (NYSE:LUMN) Shares Gap Down - Should You Sell?

Key Points

• Lumen Technologies' stock price dropped significantly, opening at $4.02 after closing at $4.45, and last traded at $3.50 with a volume of over 8.4 million shares.
• Analysts have downgraded Lumen Technologies from a "hold" to a "sell" rating, with the consensus rating currently at "Hold" and a price target of $4.64.
• The company reported a revenue decline of 5.4% year-over-year, with earnings per share of ($0.03), which topped analysts' expectations but highlighted ongoing financial challenges.

Lumen Technologies, Inc. (NYSE:LUMN - Get Free Report) shares gapped down prior to trading on Friday . The stock had previously closed at $4.45, but opened at $4.02. Lumen Technologies shares last traded at $3.50, with a volume of 8,499,833 shares traded.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on LUMN. BNP Paribas upgraded Lumen Technologies to a "hold" rating in a report on Wednesday, June 25th. Wall Street Zen upgraded Lumen Technologies from a "sell" rating to a "hold" rating in a report on Sunday. Finally, Raymond James Financial increased their target price on Lumen Technologies from $4.50 to $5.00 and gave the stock an "outperform" rating in a report on Friday. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating and two have assigned a buy rating to the company's stock. According to data from MarketBeat, Lumen Technologies presently has a consensus rating of "Hold" and an average target price of $4.64.

Lumen Technologies Price Performance

The firm has a market capitalization of $3.85 billion, a PE ratio of -3.18 and a beta of 1.43. The business has a 50-day moving average of $4.27 and a 200 day moving average of $4.33. The company has a current ratio of 2.13, a quick ratio of 2.13 and a debt-to-equity ratio of 59.98.

Lumen Technologies (NYSE:LUMN - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The technology company reported ($0.03) EPS for the quarter, beating analysts' consensus estimates of ($0.24) by $0.21. Lumen Technologies had a negative return on equity of 158.40% and a negative net margin of 9.19%. The business had revenue of $3.09 billion during the quarter, compared to analyst estimates of $3.11 billion. During the same period in the prior year, the firm posted ($0.13) EPS. Lumen Technologies's quarterly revenue was down 5.4% compared to the same quarter last year. As a group, research analysts anticipate that Lumen Technologies, Inc. will post -0.87 EPS for the current fiscal year.

Institutional Investors Weigh In On Lumen Technologies

Several large investors have recently made changes to their positions in the business. Northern Trust Corp increased its position in shares of Lumen Technologies by 8.6% during the 4th quarter. Northern Trust Corp now owns 12,354,499 shares of the technology company's stock valued at $65,602,000 after purchasing an additional 982,206 shares during the last quarter. Renaissance Technologies LLC increased its position in shares of Lumen Technologies by 76.3% during the 4th quarter. Renaissance Technologies LLC now owns 11,664,009 shares of the technology company's stock valued at $61,936,000 after purchasing an additional 5,049,709 shares during the last quarter. Invesco Ltd. increased its position in shares of Lumen Technologies by 91.6% during the 1st quarter. Invesco Ltd. now owns 10,276,782 shares of the technology company's stock valued at $40,285,000 after purchasing an additional 4,911,803 shares during the last quarter. Dimensional Fund Advisors LP increased its position in shares of Lumen Technologies by 368.4% during the 4th quarter. Dimensional Fund Advisors LP now owns 9,812,495 shares of the technology company's stock valued at $52,111,000 after purchasing an additional 7,717,596 shares during the last quarter. Finally, Allianz Asset Management GmbH increased its position in shares of Lumen Technologies by 8.5% during the 2nd quarter. Allianz Asset Management GmbH now owns 9,520,500 shares of the technology company's stock valued at $41,700,000 after purchasing an additional 748,185 shares during the last quarter. 66.19% of the stock is owned by hedge funds and other institutional investors.

Lumen Technologies Company Profile

Lumen Technologies, Inc, a facilities-based technology and communications company, provides various integrated products and services to business and residential customers in the United States and internationally. The company operates in two segments, Business and Mass Markets. It offers dark fiber, edge cloud services, internet protocol, managed security, software-defined wide area networks, secure access service edge, unified communications and collaboration, and optical wavelengths services; ethernet and VPN data networks services; and legacy services to manage cash flow, including time division multiplexing voice, private line, and other legacy services, as well as sells communication equipment, and IT solutions.