Lumen Technologies (NYSE:LUMN) Stock Price Increases by 7.4% - What Lies Ahead?

Lumen Technologies, Inc. (NYSE:LUMN) saw its stock price rise by 7.4% in trading on Wednesday. The stock reached a peak of $5.86 before closing at $5.89. During the session, the trading volume was 4,417,680 shares, which is a decrease of 44% compared to the average daily volume of 7,885,958 shares. The previous closing price stood at $5.48.

Wall Street Analysts Predict Future Growth

Recent reports from analysts have drawn attention to Lumen Technologies. Notably, TD Cowen reduced their price target for the stock from $7.00 to $6.00, maintaining a "hold" rating in their research note dated November 6. Citigroup raised their target from $6.50 to $8.00 while assigning a "neutral" rating in a report on November 29. In contrast, Royal Bank of Canada reiterated a "sector perform" rating but adjusted their target price to $4.25, up from $4.00, in a report released on December 20. Additionally, Goldman Sachs increased their price target from $4.50 to $5.00, also maintaining a "neutral" rating as of November 6. Overall, three analysts rate the stock as a sell, while six analysts suggest holding it, leading to an average rating of "Hold" with a consensus price target of $4.66.

Lumen Technologies Sees Trading Upward

The company has a market capitalization of $6.01 billion, a price-to-earnings (P/E) ratio of -2.73, and a beta of 1.28. The stock's liquidity ratios include a current ratio of 1.20 and a quick ratio of 1.20. Lumen also has a substantial debt-to-equity ratio of 53.05. The 50-day moving average lies at $6.30, while the 200-day moving average is $5.72.

Quarterly Earnings Overview

Lumen Technologies last reported its quarterly earnings on November 5. The company disclosed an earnings per share (EPS) of ($0.13), falling short of the consensus estimate of ($0.09) by $0.04. The net margin for Lumen was negative at 16.06%, with a return on equity of negative 49.74%. Revenue for the quarter reached $3.22 billion, slightly surpassing the consensus estimate of $3.21 billion, but down 11.5% year-over-year. Analysts project that for the current fiscal year, Lumen Technologies will report an EPS of -0.38.

Institutional Investments in Lumen Technologies

Recent activity among institutional investors and hedge funds indicates growing interest in Lumen Technologies. Geode Capital Management LLC increased its holdings by 1.7% during the third quarter, now owning 23,344,313 shares valued at approximately $165.78 million after acquiring an additional 383,693 shares. Hennessy Advisors Inc. has also entered the scene, purchasing a new position worth $45.09 million in the fourth quarter. Millennium Management LLC boosted its stake by 129.8% in the second quarter, now holding 7,854,906 shares valued at $8.64 million following an acquisition of 4,436,710 shares. Furthermore, AQR Capital Management LLC raised its holdings by 52.5% during the same period, owning 3,621,874 shares valued at $3.71 million. Currently, institutional investors hold 66.19% of Lumen Technologies' stock.

About Lumen Technologies

Lumen Technologies, Inc. is a facilities-based technology and communications company that offers a variety of integrated products and services for business and residential clients both in the United States and globally. It operates through two main segments: Business and Mass Markets. Lumen provides services such as dark fiber, edge cloud services, internet protocol, managed security, software-defined wide area networks, secure access service edge, and unified communications, along with traditional services for managing cash flow, including time division multiplexing voice and private line services.

Should You Invest in Lumen Technologies Right Now?

Before making any investment decisions regarding Lumen Technologies, it's essential to conduct thorough research. Current evaluations indicate that the stock has a "Reduce" rating among analysts. Investors may wish to consider other opportunities that have been identified as potentially more beneficial than Lumen Technologies.

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