Lumen Technologies (NYSE:LUMN) Shares Down 6.5% - Time to Sell?

Key Points

• Lumen Technologies shares fell 6.5% to about $5.20, well below their 50-day and 200-day moving averages, amid unusually light trading volume.
• Analysts remain cautious: Wells Fargo, Citigroup, and Goldman Sachs lowered their price targets, while the consensus rating is “Reduce” with an average target of $7.86.
• Lumen beat quarterly EPS and revenue estimates, but revenue declined 9.3% year over year and the company is expected to post a full-year loss. CEO Kathleen Johnson bought 100,000 shares, while institutional investors own 66.19% of the stock.

Lumen Technologies, Inc. (NYSE:LUMN - Get Free Report)'s stock price traded down 6.5% during trading on Friday. The stock traded as low as $5.34 and last traded at $5.1980. Approximately 1,692,839 shares changed hands during trading, a decline of 87% from the average daily volume of 13,467,706 shares. The stock had previously closed at $5.56.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the company. Wells Fargo & Company reduced their price target on Lumen Technologies from $9.00 to $7.50 and set an "equal weight" rating on the stock in a report on Wednesday, August 5th. Citigroup cut their price objective on Lumen Technologies from $10.00 to $8.25 and set a "neutral" rating on the stock in a research report on Tuesday, August 11th. Weiss Ratings restated a "sell (d-)" rating on shares of Lumen Technologies in a report on Friday, July 17th. The Goldman Sachs Group dropped their price target 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. Finally, Wall Street Zen upgraded shares of Lumen Technologies from a "sell" rating to a "hold" rating in a report on Sunday, August 9th. Nine analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Reduce" and an average price target of $7.86.

Lumen Technologies Trading Down 6.0%

The company has a market capitalization of $5.39 billion, a P/E ratio of -5.14 and a beta of 1.84. The company's 50 day moving average is $6.26 and its 200-day moving average is $7.41.

Lumen Technologies (NYSE:LUMN - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The technology company reported ($0.07) earnings per share for the quarter, topping analysts' consensus estimates 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 quarter last year, the company posted ($0.03) EPS. Lumen Technologies's revenue for the quarter was down 9.3% compared to the same quarter last year. Analysts predict that Lumen Technologies, Inc. will post -0.54 EPS for the current fiscal year.

Insider Buying and Selling at Lumen Technologies

In related news, CEO Kathleen Johnson acquired 100,000 shares of Lumen Technologies stock in a transaction that occurred on Thursday, August 6th. The stock was bought at an average price of $6.13 per share, with a total value of $613,000.00. Following the transaction, the chief executive officer directly owned 100,000 shares in the company, valued at approximately $613,000. This represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 2.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Lumen Technologies

A number of institutional investors have recently modified their holdings of the stock. Hsbc Holdings PLC bought a new stake in Lumen Technologies during the 2nd quarter valued at about $74,242,000. Bank of New York Mellon Corp lifted 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 worth $80,558,000 after buying an additional 4,886,999 shares in the last quarter. BlackRock Inc. grew its holdings in shares of Lumen Technologies by 3.5% during the second quarter. BlackRock Inc. now owns 142,261,845 shares of the technology company's stock valued at $1,092,571,000 after buying an additional 4,796,141 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. bought a new stake in shares of Lumen Technologies during the second quarter valued at approximately $24,767,000. Finally, Legal & General Group Plc purchased a new position in Lumen Technologies in the 2nd quarter worth approximately $18,541,000. 66.19% of the stock is owned by hedge funds and other institutional investors.

About Lumen Technologies

Lumen Technologies, Inc is a telecommunications and technology company that provides connectivity, networking, cloud, security and communications services to businesses, government organizations and other customers. Its offerings include fiber-based internet access, wide-area networking, software-defined networking, managed network services, cybersecurity, voice and unified communications, and data center and edge-computing solutions.

The company also serves residential customers in selected U.S.

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