What 5 Analyst Ratings Have To Say About Lumen Technologies

Lumen Technologies LUMN underwent analysis by 5 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within 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 $5.55, along with a high estimate of $8.00 and a low estimate of $4.25. Witnessing a positive shift, the current average has risen by 6.73% from the previous average price target of $5.20.

Analyzing Analyst Ratings: A Detailed Breakdown

The analysis of recent analyst actions sheds light on the perception of Lumen Technologies by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Lumen Technologies. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Lumen Technologies compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Lumen Technologies's stock. This comparison reveals trends in analysts' expectations over time.

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.

Discovering Lumen Technologies: A Closer Look

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: Financial Performance Dissected

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Challenges: Lumen Technologies's revenue growth over 3 months faced difficulties. As of 30 September, 2024, the company experienced a decline of approximately -11.54%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Communication Services sector.

Net Margin: Lumen Technologies's net margin excels beyond industry benchmarks, reaching -4.59%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Lumen Technologies's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -36.63%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Lumen Technologies's ROA excels beyond industry benchmarks, reaching -0.44%. This signifies efficient management of assets and strong financial health.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 55.03, caution is advised due to increased financial risk.

Analyst Ratings: Simplified

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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