What Can We Learn From Lumen Technologies Inc.(LUMN)’s Valuation Ratios?

Lumen Technologies Inc. (NYSE:LUMN) finished Tuesday with a subtraction of -$0.12 to close at $12.79, a downside of -0.93 percent. An average of 11,132,260 shares of common stock have been traded in the last five days. There was a fall of -$0.42 in the past week. The last 20 days have seen an average of 10,987,590 shares traded, while the 50-day average volume stands at 12,273,862.

LUMN stock has increased by 6.85% in the last month. The company shares reached their 1-month lowest point of $11.89 on 09/07/21. With the stock rallying to its 52-week high on 01/27/21, shares of the company touched a low of $8.51 and a high of $16.60 in 52 weeks. In spite of this, the price is down -22.95% from the 52-week high.


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Insider Transactions

212 days have passed since Lumen Technologies Inc. (LUMN) last reported insider trading activity. BOULET VIRGINIA, who is Director, most recently acquired $6,500 shares at $14.22 per share on Mar 09. In this transaction, the insider spent $92,430. Director, Bejar Martha Helena, disposed of 10,000 shares at a price of $10.21 on Dec 17. The insider now owns more than $102,100 worth of shares.

Valuation Metrics

Lumen Technologies Inc. (LUMN) has a trailing price-to-earnings (P/E) ratio of 17.20 for the broader industry and 30.44 for the sector. This means investors are optimistic about the stock’s future prospects. In the last five years, Lumen Technologies Inc.’s PE ratio has ranged between 35.09 and 7.244. The stock’s beta is 1.02. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.68, the price-to-book (PB) ratio at 1.19, and the price-to-cash flow ratio at 5.71.

Lumen Technologies Inc. pays a $1.00 dividend per share annually. It offers a dividend yield of 7.82%. The company’s most recent quarterly dividend payment took place on Sep. 10, and it was $0.25 a share, without any change from last year. Its latest decrease dividend $0.29 reported on Friday March 1 2019.

Lumen Technologies Inc. will next go ex-dividend on 1-Dec. The next dividend payment Lumen Technologies Inc. will make is expected to be $0.25.

The quick ratio of Lumen Technologies Inc. for the three months ended June 29 was 0.60, and the current ratio was 0.60, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 2.44 and a total debt to equity ratio of 2.66 for the quarter ending June 29. On the profitability front, the trailing 12-month gross margin is 56.90% against a 5-year average of 55.8%. Lumen Technologies Inc.’s EBITDA margin for the year ending June 29 is 41.90%, while its operating margin for the same period stands at 5.20%. Its gross profit as reported stood at $962.0 million compared to revenue of $20.71 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Lumen Technologies Inc.’s return on assets was -1.60%, compared to -1.7% over the last five years. In the past year, the return on investment has been 0.90%, and the 5-year average is 0.3%. Meanwhile, the return on equity (ROE) for the past 12 months has been -7.90% and the 5-year average holds at -7.5%. For the broader industry, ROE averaged 4.52 over the past year.

Earnings Surprise

The analyst consensus anticipated Lumen Technologies Inc.’s latest quarter earnings to come in at $0.41 per share, but it turned out to be $0.46, a 12.20% surprise. For the quarter, EBITDA amounted to $2.05 billion. Shareholders own equity worth $1.11 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Lumen Technologies Inc. (LUMN) price momentum. RSI 9-day as of the close on 05 October was 51.61%, suggesting the stock is Neutral, with historical volatility in this time frame at 40.10%.

As of today, LUMN’s price is $12.74 -3.18% or -$0.42 from its 5-day moving average. LUMN is currently trading +5.70% higher than its 20-day SMA and -11.37% lower than its 100-day SMA. However, the stock’s current price level is +0.08% above the SMA50 and +25.89% above the SMA200.

The stochastic %K and %D were 47.84% and 42.88%, respectively, and the average true range (ATR) was 0.41. With the 14-day stochastic at 39.81% and the average true range at 0.40, the RSI (14) stands at 52.56%. The stock has reached -0.01 on the 9-day MACD Oscillator while the 14-day reading was at 0.05.

Analyst Ratings

Oppenheimer downgraded Lumen Technologies Inc. (NYSE: LUMN) to a a Perform rating in its most recent analyst report. Previously, the stock was rated as a an Outperform.The consensus rating for Lumen Technologies Inc. (LUMN) among analysts is Underweight. According to current brokerage recommendations, 5 brokerage firms advise that investors sell LUMN, while 5 suggest investors hold. There are 2 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 1 others rate it as a “buy”.

What is LUMN’s price target for the next 12 months?

Analysts predict a range of price targets between $8.00 and $15.00, with a median target of $11.00. Taking a look at these predictions, the average price target given by analysts for Lumen Technologies Inc. (LUMN) stock is $11.20.

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