(VIANEWS) – Lumen Technologies (LUMN) shares surged by 12.61% to EUR1.30 on Tuesday after experiencing two consecutive sessions of losses, as indicated by an overall positive trading session. On the NYSE too, positive momentum continued, with an uptick of 2.23% resulting in EUR15,746.96 increases. LUMN closed at EUR1.15, 82.14% below its 52-week high of EUR6.44.
About Lumen Technologies
Lumen Technologies is a facilities-based technology and communications provider, offering integrated products and services under its Lumen, Quantum Fiber and CenturyLink brands to business and residential customers. Operating two segments — Business Markets and Mass Markets — the company provides compute services, IP/data services, fiber infrastructure services as well as voice/other services for both businesses and residential customers. Established in 1968 as CenturyLink (then known as Louisiana Telephone Company), Lumen was relocated from Monroe Louisiana in 2007 as it transitioned into Lumen Technologies.
Yearly Analysis
Lumen Technologies stock (LUM) is currently trading at EUR1.30, significantly lower than its 52-week high of EUR6.44 but higher than its 52-week low of EUR0.78 – this indicates a significant decline over the last year.
Lumen Technologies is projected to experience negative 16.6% sales growth this year and -5.4% in 2019. This suggests its revenue may decline over time, which may negatively affect its stock price.
Lumen Technologies currently boasts an EBITDA of EUR1.42, which indicates positive earnings before accounting for interest, taxes, depreciation and amortization costs. Unfortunately, though, their negative sales forecast could counterbalance this positive EBITDA result, leading to potential share price losses.
Overall, investors should exercise extreme caution when considering Lumen Technologies as an investment opportunity, given its poor sales growth forecast and potential negative effect on EBITDA. Perhaps waiting until there is more of an optimistic outlook may be wiser before making their move in this stock.
Technical Analysis
Lumen Technologies stock remains in turmoil as its value sits below both its 50-day and 200-day moving averages, signaling a downward price trend. Lumen’s last reported volume of 12,014,456 represents 28.68% less than its average volume of 16,848,100 suggesting there may be less investor trust or confidence in its stock.
Lumen Technologies has experienced negative fluctuations over the last week, month and quarter, with average volatility reaching 7.056% in just this past week alone. Lumen Technologies stock can be considered overbought according to stochastic oscillator readings of 80 or higher as indicated by its stochastic oscillator indicator.
Lumen Technologies stock appears to be under downward pressure, so investors should exercise extreme caution before investing. Investors should monitor its moving averages and oscillator readings closely in order to gauge its potential rebound or further decline.
Quarter Analysis
Lumen Technologies is currently experiencing negative sales growth for both its current and upcoming quarters, at rates as significant as 57.1% and 88.4%, respectively.
Additionally, year-on-year quarterly revenue growth has fallen 17.1% and its trailing twelve month revenue stands at $14.84B.
Given this potentially negative outlook, investors may wish to exercise caution when investing in Lumen Technologies. Before making any definitive investment decisions regarding Lumen Technologies it would be prudent to closely follow its performance and growth prospects over the course of subsequent quarters before making decisions regarding any investments or asset purchases.
Equity Analysis
Lumen Technologies boasts a dividend yield of 15.5%, which is relatively high compared to other stocks on the market. Unfortunately, its trailing twelve month EPS and return on equity figures indicate lack of profitability; furthermore, their trailing twelve month return on equity value also shows no profit being generated for shareholders.
Before investing in Lumen Technologies, investors should carefully consider these factors. A high dividend yield may tempt investors, but it is equally essential to assess its financial health and profitability. Indicators such as revenue growth and cash flow can help investors gauge Lumen Technologies’ overall health.
Overall, investors should exercise extreme caution when investing in Lumen Technologies and conduct further research to ascertain its prospects for profitability and expansion.
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