Lumen Technologies (NYSE:LUMN) Stock Price Down 8.8% After Analyst Downgrade

Lumen Technologies, Inc. (NYSE:LUMN) was down 8.8% on Wednesday after The Goldman Sachs Group lowered their price target on the stock from $8.50 to $7.25. The Goldman Sachs Group currently has a neutral rating on the stock. Lumen Technologies traded as low as $6.12 and last traded at $6.12. 4,699,114 shares were traded during trading, a decline of 65% from the average daily volume of 13,474,102 shares. The stock had previously closed at $6.71.

Several other brokerages have also issued reports on LUMN. Weiss Ratings restated a “sell (d-)” rating on shares of Lumen Technologies in a report on Friday, July 17th. UBS Group lifted their price target on shares of Lumen Technologies from $6.00 to $8.00 and gave the company a “neutral” rating in a research report on Wednesday, May 6th. Wells Fargo & Company reduced their price target on shares of Lumen Technologies from $9.00 to $7.50 and set an “equal weight” rating on the stock in a research note on Wednesday. Zacks Research cut shares of Lumen Technologies from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, May 5th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Lumen Technologies from $6.00 to $7.00 and gave the company a “neutral” rating in a report on Monday, May 11th. Nine investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Lumen Technologies has a consensus rating of “Reduce” and an average target price of $8.11.

Lumen Technologies News Roundup

Here are the key news stories impacting Lumen Technologies this week:

• Positive Sentiment: Lumen’s second-quarter loss was narrower than expected at $0.07 per share versus the $0.13 consensus estimate, while revenue of $2.81 billion exceeded forecasts of $2.74 billion. Lumen Reports Q2 Loss, Tops Revenue Estimates
• Positive Sentiment: Strategic revenue rose approximately 14%, reaching more than half of business revenue, supported by increased NaaS adoption and demand for digital, cloud and AI networking. The Alkira acquisition is also intended to strengthen Lumen’s multi-cloud networking platform. Lumen Beats Revenue Estimates on Strong Digital Networking Demand
• Positive Sentiment: Free cash flow turned positive, and management maintained its full-year outlook, including expected free cash flow of $1.9 billion to $2.1 billion. Lumen Q2: Another Step Forward
• Neutral Sentiment: Lumen appointed John M. Hinshaw, a former technology and operations executive at companies including HSBC, Hewlett-Packard, Boeing and Verizon Wireless, to its board. The move adds digital transformation, security and operational expertise but does not immediately change financial results. Lumen Appoints John M. Hinshaw to Board
• Negative Sentiment: Total revenue still fell 9.3% year over year, and EBITDA remains under pressure as Lumen winds down lower-growth legacy operations. Investors may also be concerned that the digital transformation has not yet offset the broader decline.
• Negative Sentiment: Wells Fargo lowered its price target from $9.00 to $7.50 and kept an “equal weight” rating, signaling more limited near-term upside and a more cautious view of the turnaround. Wells Fargo Price Target Update

Institutional Trading of Lumen Technologies

Several hedge funds have recently made changes to their positions in LUMN. Kemnay Advisory Services Inc. purchased a new position in shares of Lumen Technologies in the fourth quarter valued at approximately $25,000. International Assets Investment Management LLC purchased a new stake in Lumen Technologies during the 4th quarter worth approximately $30,000. Versant Capital Management Inc lifted its holdings in Lumen Technologies by 90.3% during the 2nd quarter. Versant Capital Management Inc now owns 3,920 shares of the technology company’s stock worth $30,000 after buying an additional 1,860 shares in the last quarter. Ascentis Independent Advisors purchased a new position in Lumen Technologies in the 1st quarter valued at approximately $27,000. Finally, Trust Asset Management LLC purchased a new position in Lumen Technologies in the 2nd quarter valued at approximately $34,000. Institutional investors and hedge funds own 66.19% of the company’s stock.

Lumen Technologies Price Performance

The company’s 50 day simple moving average is $7.70 and its 200 day simple moving average is $7.88. The firm has a market cap of $6.33 billion, a price-to-earnings ratio of -3.54 and a beta of 1.78.

Lumen Technologies (NYSE:LUMN) last announced its quarterly earnings data on Tuesday, August 4th. The technology company reported ($0.07) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.13) by $0.06. The company had revenue of $2.81 billion during the quarter, compared to analyst estimates of $2.74 billion. The firm’s revenue was down 9.3% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.03) earnings per share. As a group, analysts forecast that Lumen Technologies, Inc. will post -0.39 earnings per share for the current year.

About Lumen Technologies

Lumen Technologies is a multinational technology company specializing in integrated network, edge cloud, security and collaboration services for enterprise and public sector clients. The company’s core offerings include high-capacity fiber and IP-based connectivity, managed edge computing solutions designed to accelerate applications and data processing closer to end users, and cybersecurity services ranging from DDoS protection to unified threat management. Through its unified portfolio, Lumen enables organizations to support digital transformation initiatives, modernize infrastructure and enhance operational resilience.

Leveraging one of the largest fiber footprints in North America, as well as infrastructure in Latin America and parts of Europe, Lumen connects customers across more than 60 countries.