Lumen Technologies (NYSE:LUMN) Shares Down 5.2% - What's Next?

Key Points

• Lumen shares fell 5.2% to about $4.47 in Wednesday trading, on volume 26% below the average.
• Analyst sentiment is cautious: the consensus rating is “Reduce,” with an average price target of $6.19. Several firms recently cut their targets, including TD Cowen ($8), JPMorgan ($6), and Citi ($5.50).
• Lumen beat quarterly EPS estimates with a loss of $0.14 per share versus the expected $0.23 loss, though revenue of $2.71 billion fell short of forecasts. The CEO and a director also disclosed recent stock purchases totaling 125,000 shares.

Lumen Technologies, Inc. (NYSE:LUMN - Get Free Report) dropped 5.2% during trading on Wednesday. The stock traded as low as $4.50 and last traded at $4.4650. 10,229,398 shares traded hands during trading, a decline of 26% from the average session volume of 13,851,384 shares. The stock had previously closed at $4.71.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on LUMN shares. TD Cowen dropped their price objective on shares of Lumen Technologies from $9.00 to $8.00 and set a "hold" rating for the company in a report on Thursday, November 5th. JPMorgan Chase & Co. decreased their target price on shares of Lumen Technologies from $7.00 to $6.00 and set a "neutral" rating on the stock in a report on Thursday, November 5th. Wall Street Zen raised shares of Lumen Technologies from a "sell" rating to a "hold" rating in a research note on Sunday, August 9th. Weiss Ratings restated a "sell (d-)" rating on shares of Lumen Technologies in a report on Friday, July 17th. Finally, Citigroup reduced their price target on shares of Lumen Technologies from $8.25 to $5.50 and set a "neutral" rating on the stock in a research report on Friday, November 6th. Ten research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and an average price target of $6.19.

Lumen Technologies Trading Down 5.2%

The stock has a market capitalization of $4.60 billion, a PE ratio of -4.37 and a beta of 1.94. The firm's fifty day moving average is $5.51 and its 200-day moving average is $7.11.

Lumen Technologies (NYSE:LUMN - Get Free Report) last posted its earnings results on Wednesday, November 4th. The technology company reported ($0.14) EPS 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 analyst estimates of $2.73 billion. As a group, equities analysts predict that Lumen Technologies, Inc. will post -0.54 EPS for the current year.

Insider Activity at Lumen Technologies

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

Hedge Funds Weigh In On Lumen Technologies

Several hedge funds have recently bought and sold shares of LUMN. BlackRock Inc. grew its position in Lumen Technologies by 3.5% in the 2nd quarter. BlackRock Inc. now owns 142,261,845 shares of the technology company's stock valued at $1,092,571,000 after acquiring an additional 4,796,141 shares in the last quarter. State Street Corp lifted its position in shares of Lumen Technologies by 4.3% during the second quarter. State Street Corp now owns 48,003,189 shares of the technology company's stock worth $368,664,000 after purchasing an additional 1,990,860 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Lumen Technologies by 1.0% during the first quarter. Dimensional Fund Advisors LP now owns 14,994,640 shares of the technology company's stock worth $104,156,000 after purchasing an additional 144,664 shares in the last quarter. Bank of New York Mellon Corp boosted its stake in shares of Lumen Technologies by 87.2% in the second quarter. Bank of New York Mellon Corp now owns 10,489,367 shares of the technology company's stock valued at $80,558,000 after purchasing an additional 4,886,999 shares during the period. Finally, Allianz Asset Management GmbH boosted its stake in shares of Lumen Technologies by 18.7% in the second quarter. Allianz Asset Management GmbH now owns 10,074,316 shares of the technology company's stock valued at $77,371,000 after purchasing an additional 1,585,083 shares during the period. Institutional investors and hedge funds own 66.19% of the company's stock.

Lumen Technologies Company Profile

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.

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