Stocks of Lumen Technologies Inc. (LUMN) are poised to climb above their peers

Lumen Technologies Inc. (NYSE: LUMN) stock fell -2.36% on Friday to $10.77 against a previous-day closing price of $11.03. With 9.52 million shares changed hands, the volume of the stock remained lighter than its average volume of 11.89 million shares. During the session, the Telecom Services company that operates in wider Communication Services sector, reached to the highest price of $11.03 whereas the lowest price it dropped to was $10.69. The 52-week range on LUMN shows that it touched its highest point at $14.49 and its lowest point at $9.31 during that stretch. It currently has a 1-year price target of $10.40. With its current market cap of 11.21 billion, LUMN has annualized dividend of $1.00 while the current yield stands at 9.29%. Beta for the stock currently stands at 0.98.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of LUMN was up-trending over the past week, with a rise of 0.28%, but this was down by -3.32% over a month. Three-month performance surged to 4.97% while six-month performance fell -12.86%. The stock lost -14.11% in the past year, while it has lost -14.18% so far this year. A look at the trailing 12-month EPS for LUMN yields 2.06 with Next year EPS estimates of 1.08. For the next quarter, that number is 0.46. This implies an EPS growth rate of 266.90% for this year and -37.07% for next year.

Float and Shares Shorts:

At present, 1.01 billion LUMN shares are outstanding with a float of 941.77 million shares on hand for trading. On Jul 14, 2022, short shares totaled 147.07 million, which was 14.24% higher than short shares on Jun 14, 2022. In addition to Mr. Jeffrey K. Storey as the firm’s Pres, CEO & Director, Mr. Stacey Wayne Goff serves as its Exec. VP, Gen. Counsel & Sec.

Institutional Ownership:

Through their ownership of 79.06% of LUMN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 40.92% of LUMN, in contrast to 37.69% held by mutual funds. Shares owned by individuals account for 1.02%. As the largest shareholder in LUMN with 10.86% of the stake, The Vanguard Group, Inc. holds 112,189,440 shares worth 112,189,440. A second-largest stockholder of LUMN, BlackRock Fund Advisors, holds 75,271,119 shares, controlling over 7.29% of the firm’s shares. Temasek Holdings Pte Ltd. is the third largest shareholder in LUMN, holding 72,659,407 shares or 7.03% stake. With a 2.95% stake in LUMN, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 30,444,125 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.30% of LUMN stock, is the second-largest Mutual Fund holder. It holds 23,786,352 shares valued at 259.51 million. iShares Tr. – Select Dividend ETF holds 2.11% of the stake in LUMN, owning 21,793,927 shares worth 237.77 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LUMN since 13 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 4 suggest SELL ratings. Of the remaining analysts, 5 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 2 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With LUMN analysts setting a high price target of $12.50 and a low target of $8.00, the average target price over the next 12 months is $10.40. Based on these targets, LUMN could surge 16.06% to reach the target high and fall by -25.72% to reach the target low. Reaching the average price target will result in a decline of -3.44% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. LUMN will report FY 2022 earnings on 02/08/2023. Analysts have provided yearly estimates in a range of $1.96 being high and $1.52 being low. For LUMN, this leads to a yearly average estimate of $1.72. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Lumen Technologies Inc. surprised analysts by $0.17 when it reported $0.63 EPS against a consensus estimate of $0.46. The surprise factor in the prior quarter was -$0.03. Based on analyst estimates, the high estimate for the next quarter is $0.51 and the low estimate is $0.40. The average estimate for the next quarter is thus $0.46.

Summary of Insider Activity:

Insiders traded LUMN stock several times over the past three months with 10 Buys and 0 Sells. In these transactions, 185,140 shares were bought while 0 shares were sold. The number of buy transactions has increased to 21 while that of sell transactions has risen to 14 over the past year. The total number of shares bought during that period was 3,265,804 while 3,540,688 shares were sold.

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