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

Lumen Technologies, Inc. (NYSE:LUMN) experienced a significant rise in its stock price, trading up 7.4% on Wednesday. The stock peaked at $5.86 before closing at $5.89. During this trading session, a total of 4,417,680 shares changed hands, which represents a substantial decrease of 44% compared to the average trading volume of 7,885,958 shares. The previous close was noted at $5.48.

Wall Street Analysts Forecast Growth

Recent analysis from various equity research firms has put Lumen Technologies under the spotlight. Notably, TD Cowen reduced its target price for Lumen from $7.00 to $6.00 and maintained a "hold" rating. On the other hand, Citigroup has increased their target from $6.50 to $8.00 while also assigning a "neutral" rating. Meanwhile, the Royal Bank of Canada reiterated its "sector perform" rating and raised its price target from $4.00 to $4.25. Goldman Sachs Group also made a move, increasing their target from $4.50 to $5.00, retaining a "neutral" rating. The overall sentiment among analysts sees three advocating for a sell and six recommending a hold, resulting in an average rating of "Hold" and a consensus price target set at $4.66.

Lumen Technologies Trading Insights

Lumen Technologies' stock has shown a market capitalization of approximately $6.01 billion, along with a P/E ratio of -2.73, indicating some challenges in profitability. The company's current ratio and quick ratio stand at 1.20 each, and its debt-to-equity ratio is relatively high at 53.05. The stock's moving averages reflect a 50-day average of $6.30 and a 200-day average of $5.72.

Recent Earnings Performance

The company reported its quarterly earnings results on November 5. Lumen Technologies posted earnings per share of ($0.13) which fell short of analyst expectations of ($0.09) by $0.04. The company recorded a net margin of -16.06% and a return on equity of -49.74%. Total revenue for the quarter was $3.22 billion, slightly surpassing consensus estimates of $3.21 billion. Compared to the same period last year, revenue declined by 11.5%. Analysts predict that the company will report an EPS of -0.38 for the current fiscal year.

Institutional Ownership and Trends

Institutional investors have also been adjusting their positions in Lumen Technologies. For instance, Geode Capital Management increased its stake by 1.7% during the third quarter, holding 23,344,313 shares valued at approximately $165,776,000 after a recent purchase of 383,693 shares. Hennessy Advisors made a new investment worth around $45,089,000 in the fourth quarter. Furthermore, Millennium Management amplified its position significantly by 129.8% in the second quarter, adding 4,436,710 shares for a total of 7,854,906 shares worth $8,640,000. Hedge funds currently control about 66.19% of Lumen's stock.

About Lumen Technologies

Lumen Technologies, Inc. is a communication and technology provider that offers an array of integrated products and services. It serves both business and residential customers in the U.S. and internationally. The company operates through two segments: Business and Mass Markets, providing services such as dark fiber, edge cloud services, internet protocol, managed security, and other communications solutions.

Final Thoughts

As the stock of Lumen Technologies sees a notable uptick, investors may wonder whether to enter the position. Analysts' mixed ratings reflect caution but opportunities that may arise. Each investor must weigh these insights along with their investment strategy.

Lumen, Stock, WallStreet