(VIANEWS) – Lumen Technologies (NYSE: LUMN) shares on Tuesday after-hours trading experienced an unexpected 12.04% surge, reaching EUR1.54; this followed two consecutive sessions of losses. Lumen’s stock last closed at EUR1.37 which is 77.5 percent below its 52-week high of EUR6.09 The overall market has also shown signs of weakness with the NYSE sliding 0.08% to EUR16,260.66 after three straight gains.
About Lumen Technologies
Lumen Technologies, Inc. is a facilities-based technology and communications provider that offers integrated products and services under the Lumen, Quantum Fiber, CenturyLink brands to business and residential customers worldwide. Operating two segments – Business Markets and Mass Markets – Lumen provides compute and application, IP data services, fiber infrastructure voice telephony voice services as well as additional services. Previously known as CenturyLink Inc. founded in 1968 with headquarters located in Monroe Louisiana
Yearly Analysis
Based on available information, Lumen Technologies’ stock is currently trading at EUR1.54, which is significantly below its 52-week high of EUR6.09 but higher than its 52-week low of EUR0.78 – suggesting it has experienced significant price drops over the last year.
Lumen Technologies is projected to experience negative sales growth of 17% this year and 7.8% next year, which suggests revenue will decline and could have an adverse effect on its stock price.
Lumen Technologies currently stands with an EBITDA ratio of 1.44, which while not being detrimental is nonetheless telling of how earnings before interest, taxes, depreciation and amortization (EBITDA) is not expanding significantly and could cause investors to become concerned.
Overall, Lumen Technologies stock seems uncertain due to negative sales growth and no significant EBITDA increases; investors should conduct further research and analysis before making an informed decision about investing.
Technical Analysis
Lumen Technologies (LMEN) stock prices have experienced a recent downtrend, falling below both its 50-day and 200-day moving averages of EUR1.33 and EUR1.91, suggesting an overall downward trend both short- and long-term. Furthermore, their last reported volume (11 01 279 shares) represents 32.87% less trading activity compared with their average volume (16 405 800).
Lumen Technologies has experienced both negative and positive fluctuations over the past week, month, and quarter with average intraday variations averaging 1.35%, 1.35%, and 5.43%, respectively. However, its highest average volatility amplitude reached 3.66% last week, 5.08% last month, and 5.43% last quarter.
According to the stochastic oscillator, an indicator widely used for measuring overbought and oversold conditions, Lumen Technologies stock is currently oversold (=20). This indicates that its current valuation may be understated and due for a price rebound.
Lumen Technologies’ current stock price situation appears bearish, with its declining trend and low trading volume and an oversold status according to stochastic oscillator. However, historical volatility indicates that Lumen could soon experience a price correction.
Quarter Analysis
Lumen Technologies is experiencing significant difficulties in terms of sales and revenue growth. Their current quarter sales growth estimates were negative 8.5% while negative 9.1% for their next quarter projected estimates showed significant drops. Their growth estimates for both quarters were also significantly below expectation at 102.3% and 170%, demonstrating their struggles in this regard.
Quarter-on-quarter revenue growth has also decreased by 17.1% year over year to reach 14.84B – representing negative growth year-on-year.
As Lumen Technologies has experienced negative sales and revenue growth trends, investors should exercise extreme caution before considering investing. If possible, investors may wish to wait until key financial metrics such as sales growth and revenue enhancement improve before considering an investment decision.
Equity Analysis
Lumen Technologies’ negative trailing twelve months earnings per share (EPS) figure indicates that it has not generated any profit over the last year, something which may concern investors as profits play a vital role in stock price appreciation.
Negative return on equity of -153.72% over twelve trailing months is also alarming, indicating that shareholders have not seen their equity investment return as profit for them. A negative return may suggest that assets are being underutilized to generate profit for shareholders.
Due to Lumen Technologies’s financial metrics, investors should proceed with caution before investing. Waiting until there has been an upturn in financial performance may be beneficial before considering making an investment decision.
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