Lumen Technologies (NYSE:LUMN) Stock Price Down 7.1% - Time to Sell?

Key Points

• Shares of Lumen fell 7.1% to $9.745 on Tuesday, with about 7.06 million shares traded—roughly 51% below the stock’s average daily volume and down from a $10.49 close.
• Analysts carry a consensus “Hold” rating with an average price target of $5.97 (one Buy, five Holds, one Sell), reflecting mixed guidance including Citigroup’s downgrade to Neutral and modest target changes from other firms.
• Company fundamentals show stress—negative EPS, a -9.19% net margin and -158.4% ROE plus ~60% debt-to-equity—yet the CFO purchased 40,000 shares at $4.44 and institutional investors own about 66% of the stock.

Shares of Lumen Technologies, Inc. (NYSE:LUMN - Get Free Report) dropped 7.1% during trading on Tuesday . The company traded as low as $9.70 and last traded at $9.7450. Approximately 7,055,312 shares were traded during mid-day trading, a decline of 51% from the average daily volume of 14,277,388 shares. The stock had previously closed at $10.49.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on LUMN shares. Citigroup downgraded shares of Lumen Technologies from a "buy" rating to a "neutral" rating and set a $11.00 price objective on the stock. in a research report on Friday, October 31st. Weiss Ratings reiterated a "sell (d-)" rating on shares of Lumen Technologies in a research report on Wednesday, October 8th. The Goldman Sachs Group raised their target price on Lumen Technologies from $4.10 to $4.60 and gave the stock a "neutral" rating in a research report on Friday, October 3rd. Raymond James Financial increased their price objective on shares of Lumen Technologies from $4.50 to $5.00 and gave the stock an "outperform" rating in a research note on Friday, August 1st. Finally, Wall Street Zen upgraded shares of Lumen Technologies from a "sell" rating to a "hold" rating in a research report on Sunday. One analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $5.97.

Lumen Technologies Stock Performance

The company has a market capitalization of $9.48 billion, a P/E ratio of -7.83 and a beta of 1.45. The business's fifty day simple moving average is $7.20 and its 200-day simple moving average is $5.27. The company has a debt-to-equity ratio of 59.98, a quick ratio of 2.13 and a current ratio of 2.13.

Lumen Technologies (NYSE:LUMN - Get Free Report) last posted its earnings results on Friday, January 27th. The technology company reported $0.49 EPS for the quarter. The firm had revenue of $4.05 billion during the quarter. Lumen Technologies had a negative return on equity of 158.40% and a negative net margin of 9.19%. As a group, equities analysts anticipate that Lumen Technologies, Inc. will post -0.87 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Christopher Stansbury acquired 40,000 shares of Lumen Technologies stock in a transaction that occurred on Friday, August 15th. The shares were bought at an average cost of $4.44 per share, with a total value of $177,600.00. Following the transaction, the chief financial officer directly owned 535,000 shares of the company's stock, valued at $2,375,400. This trade represents a 8.08% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this link. 2.30% of the stock is owned by company insiders.

Institutional Trading of Lumen Technologies

Several institutional investors and hedge funds have recently made changes to their positions in the business. Compound Planning Inc. increased its stake in Lumen Technologies by 3.7% in the 3rd quarter. Compound Planning Inc. now owns 55,684 shares of the technology company's stock worth $341,000 after buying an additional 1,978 shares during the period. Wealth Alliance LLC bought a new position in Lumen Technologies in the 3rd quarter worth about $86,000. Crestwood Advisors Group LLC bought a new stake in shares of Lumen Technologies during the third quarter valued at approximately $64,000. Vanguard Group Inc. grew its stake in Lumen Technologies by 1.2% in the third quarter. Vanguard Group Inc. now owns 113,552,549 shares of the technology company's stock worth $694,942,000 after purchasing an additional 1,295,177 shares in the last quarter. Finally, Fifth Third Bancorp increased its holdings in Lumen Technologies by 24.5% during the 3rd quarter. Fifth Third Bancorp now owns 5,343 shares of the technology company's stock worth $33,000 after purchasing an additional 1,051 shares during the period. 66.19% of the stock is currently owned by institutional investors.

About Lumen Technologies

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.

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