Lumen Technologies Target of Unusually High Options Trading (NYSE:LUMN)

Key Points

• Unusually high bearish options activity: Traders purchased 26,085 put options on Lumen Technologies, 35% above the average daily volume.
• Analysts remain cautious: Wells Fargo and Goldman Sachs lowered their price targets, while nine analysts rate the stock Hold and one rates it Sell. The consensus rating is “Reduce,” with a $7.86 price target.
• Mixed operating signals: Lumen’s shares fell to $6.59, despite quarterly revenue and adjusted earnings exceeding expectations. CEO Kathleen E. Johnson also bought 100,000 shares, while institutional investors own 66.19% of the company.

Lumen Technologies, Inc. (NYSE:LUMN - Get Free Report) was the recipient of some unusual options trading on Thursday. Traders acquired 26,085 put options on the company. This represents an increase of 35% compared to the average daily volume of 19,320 put options.

Analyst Ratings Changes

LUMN has been the subject of several recent research reports. Wells Fargo & Company decreased their price target on Lumen Technologies from $9.00 to $7.50 and set an "equal weight" rating for the company in a research note on Wednesday, August 5th. The Goldman Sachs Group reduced their price objective on Lumen Technologies from $8.50 to $7.25 and set a "neutral" rating for the company in a research note on Wednesday, August 5th. Wall Street Zen raised Lumen Technologies from a "sell" rating to a "hold" rating in a report on Sunday, August 9th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Lumen Technologies in a research note on Friday, July 17th. Finally, JPMorgan Chase & Co. lifted their price target on Lumen Technologies from $6.00 to $7.00 and gave the stock a "neutral" rating in a report on Monday, May 11th. Nine equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus price target of $7.86.

Lumen Technologies Price Performance

Shares of Lumen Technologies stock traded down $0.21 during trading hours on Thursday, reaching $6.59. The company had a trading volume of 5,008,644 shares, compared to its average volume of 13,523,687. The business has a fifty day simple moving average of $6.50 and a 200 day simple moving average of $7.57. Lumen Technologies has a one year low of $4.57 and a one year high of $11.95. The firm has a market cap of $6.80 billion, a PE ratio of -6.46 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) earnings per share for the quarter, beating the consensus estimate of ($0.13) by $0.06. The business had revenue of $2.81 billion during the quarter, compared to analysts' expectations of $2.74 billion. During the same period in the previous year, the business earned ($0.03) EPS. The business's revenue was down 9.3% on a year-over-year basis. On average, research analysts forecast that Lumen Technologies will post -0.52 EPS for the current year.

Insider Buying and Selling at Lumen Technologies

In related news, CEO Kathleen E. Johnson acquired 100,000 shares of the company's stock in a transaction dated Thursday, August 6th. The shares were bought at an average cost of $6.13 per share, with a total value of $613,000.00. Following the completion of the transaction, the chief executive officer directly owned 100,000 shares of the company's stock, valued at $613,000. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through the SEC website. 2.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Lumen Technologies

Several institutional investors have recently made changes to their positions in LUMN. Allianz Asset Management GmbH boosted its holdings in Lumen Technologies by 18.7% in the 2nd quarter. Allianz Asset Management GmbH now owns 10,074,316 shares of the technology company's stock worth $77,371,000 after buying an additional 1,585,083 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Lumen Technologies in the second quarter worth about $2,513,000. California State Teachers Retirement System grew its position in shares of Lumen Technologies by 649.4% during the second quarter. California State Teachers Retirement System now owns 8,472,745 shares of the technology company's stock worth $65,071,000 after purchasing an additional 7,342,204 shares in the last quarter. HB Wealth Management LLC raised its stake in Lumen Technologies by 15.8% during the 2nd quarter. HB Wealth Management LLC now owns 15,472 shares of the technology company's stock valued at $119,000 after purchasing an additional 2,114 shares during the period. Finally, Compass Financial Management LLC purchased a new position in Lumen Technologies in the 2nd quarter worth approximately $79,000. Institutional investors own 66.19% of the company's stock.

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.

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