Lumen Technologies (NYSE:LUMN) Stock Price Up 7.4% - What's Next?

Lumen Technologies, Inc. (NYSE:LUMN) experienced a notable increase in its stock price, rising by 7.4% during trading on Wednesday. The stock peaked at $5.86 before settling at $5.89, with over 4.4 million shares changing hands. This trading volume represents a 44% decrease from its average daily volume of around 7.9 million shares, as the stock had previously closed at $5.48.

Wall Street Analysts Forecast Growth

Recent analyst reports have been discussing Lumen Technologies extensively. For instance, TD Cowen reduced their target price for Lumen from $7.00 to $6.00 and designated it with a "hold" rating. In contrast, Citigroup raised their target price from $6.50 to $8.00, giving the firm a "neutral" stance. Additionally, Royal Bank of Canada maintained a "sector perform" rating while increasing their target to $4.25 from $4.00. Goldman Sachs also raised Lumen’s target price to $5.00 from $4.50, providing the stock with a "neutral" rating. Generally, three analysts rate Lumen with a "sell" while six others opt for a "hold" rating, leading to an overall average rating of "Hold" and a consensus price target of $4.66.

Lumen Technologies Trading Overview

On the trading front, Lumen Technologies has shown a 2.7% increase recently, although there are lingering warning signals about its performance. The company boasts a market capitalization of approximately $6.01 billion, featuring a price-to-earnings (P/E) ratio of -2.73 and a beta of 1.28. The stock has a 50-day moving average set at $6.30 and a 200-day moving average of $5.72.

Recent Earnings Reports

The latest quarterly earnings results from Lumen Technologies, released on November 5th, revealed earnings per share of ($0.13), which fell short of the consensus estimate of ($0.09) by $0.04. Notably, Lumen reported a negative net margin of 16.06% and a negative return on equity of 49.74%. Revenue for the quarter stood at $3.22 billion, just above the $3.21 billion anticipated by analysts. Compared to the same quarter last year, revenue fell by 11.5%. Forecasts predict that Lumen Technologies will record an earnings per share of -0.38 for the current fiscal year.

Institutional Investors' Activity

Several institutional investors and hedge funds have made adjustments to their holdings in Lumen Technologies. Geode Capital Management increased its stake by 1.7% during the third quarter, acquiring 383,693 additional shares for a total of 23.3 million shares worth approximately $165.8 million. Hennessy Advisors established a new position in Lumen during the fourth quarter valued at around $45.1 million. Similarly, Millennium Management boosted its share count by 129.8%, now owning nearly 7.9 million shares worth about $8.64 million. AQR Capital Management raised its holdings by 52.5%, owning over 3.6 million shares after acquiring an additional 1.2 million shares. Investors' interests are evident as hedge funds and other institutional investors currently hold around 66.19% of the company's stock.

Lumen Technologies Company Overview

Lumen Technologies, Inc. is a technology and communications company that operates both domestically and internationally. It provides a range of integrated services for business and residential customers, including dark fiber, edge cloud services, internet protocol offerings, managed security, software-defined networking, and legacy services to ensure cash flow management. Its operations are divided into two main segments: Business and Mass Markets.

Investment Considerations

Before considering an investment in Lumen Technologies, potential investors should evaluate the stock's performance compared to other options highlighted by analysts. The consensus suggests that alternative investments may currently offer better potential returns.

Lumen, Stock, Earnings