What 4 Analyst Ratings Have To Say About Lumen Technologies

Lumen Technologies LUMN has been analyzed by 4 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $4.88, along with a high estimate of $6.00 and a low estimate of $4.00. This current average reflects an increase of 13.23% from the previous average price target of $4.31.

Decoding Analyst Ratings: A Detailed Look

The standing of Lumen Technologies among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Lumen Technologies. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Lumen Technologies compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Lumen Technologies's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Lumen Technologies's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Lumen Technologies analyst ratings.

About Lumen Technologies

With 450,000 route miles of fiber, Lumen Technologies is one of the United States' largest telecommunications carriers serving global enterprises. Its merger with Level 3 in 2017 and divestiture of much of its incumbent local exchange carrier, or ILEC, business in 2022 has shifted the company's operations away from its legacy consumer business and toward enterprises (now about 75% of revenue). Lumen offers businesses a full menu of communications services, providing colocation and data center services, data transportation, and end-user phone and internet service. On the consumer side, Lumen provides broadband and phone service across 37 states, where it has 4.5 million broadband customers.

Lumen Technologies's Economic Impact: An Analysis

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Decline in Revenue: Over the 3 months period, Lumen Technologies faced challenges, resulting in a decline of approximately -10.73% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Communication Services sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -1.5%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Lumen Technologies's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -10.1%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Lumen Technologies's ROA stands out, surpassing industry averages. With an impressive ROA of -0.15%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Lumen Technologies's debt-to-equity ratio stands notably higher than the industry average, reaching 40.52. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: Simplified

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

Breaking: Wall Street's Next Big Mover

Benzinga's #1 analyst just identified a stock poised for explosive growth. This under-the-radar company could surge 200%+ as major market shifts unfold. Click here for urgent details.

This article was generated by Benzinga's automated content engine and reviewed by an editor.