4 Analysts Assess Lumen Technologies: What You Need To Know

4 analysts have shared their evaluations of Lumen Technologies LUMN during the recent three months, expressing a mix of bullish and bearish perspectives.

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.

Analysts have recently evaluated Lumen Technologies and provided 12-month price targets. The average target is $5.38, accompanied by a high estimate of $8.00 and a low estimate of $4.25. This current average has increased by 9.35% from the previous average price target of $4.92.

Interpreting Analyst Ratings: A Closer Look

A comprehensive examination of how financial experts perceive Lumen Technologies is derived from recent analyst actions. The following is a detailed summary of 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: 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: Analysts predict movements in price targets, offering estimates for Lumen Technologies's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Lumen Technologies's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Lumen Technologies analyst ratings.

All You Need to Know 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 Financial Performance

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Negative Revenue Trend: Examining Lumen Technologies's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -11.54% in revenue growth, reflecting a decrease in 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 below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -4.59%, the company may need to address challenges in effective cost control.

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): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of -0.44%, the company showcases effective utilization of assets.

Debt Management: Lumen Technologies's debt-to-equity ratio is notably higher than the industry average. With a ratio of 55.03, the company relies more heavily on borrowed funds, indicating a higher level of 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 enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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