(VIANEWS) – Lumen Technologies investors appear optimistic as its shares increased 13.74% to reach EUR1.49 at the close of trading on Friday despite two consecutive sessions of losses, contributing to the overall rise in NYSE prices (0.95% total rise to EUR16,241.33) and contributing towards Lumen’s rising stock price despite currently sitting 78.49% below its 52-week high of EUR6.09; an indication of their expectations that Lumen may experience a rebound.
About Lumen Technologies
Lumen Technologies, Inc. (Lumen Techs for short) is a facilities-based technology and communications company offering integrated products and services under its Lumen, Quantum Fiber and CenturyLink brands to both business and residential customers across the US and internationally. Operating through two segments – Business Markets and Mass Markets – LT operates services including compute and application services, IP/data services, fiber infrastructure services as well as voice/other services. Formerly known as CenturyLink Inc, this entity changed to Lumen Technologies Inc in September 2020 with headquarters located at Monroe Louisiana. It was founded back in 1968 with headquarters being changed accordingly in March 2019
Yearly Analysis
Lumen Technologies stock has experienced significant fluctuations over the last year; currently trading at EUR1.49 it stands significantly lower than its 52-week high of EUR6.09 but higher than its 52-week low of EUR0.78. This indicates significant market fluctuations for Lumen.
Lumen Technologies’ sales growth is projected to decrease this year by 16.9% and then again next year by 7.3% – this indicates that their revenue may decline over time.
Lumen Technologies’ EBITDA, which measures its profitability, currently stands at 1.43. Although this figure appears positive, recent trends indicate financial strain in the form of decreasing EBITDA results, which may signal impending trouble ahead.
Given this information, investors are strongly advised to exercise extreme caution when investing in Lumen Technologies. Although its stock price may seem appealing, negative sales growth and declining EBITDA indicate potential financial issues within the company that require further investigation before any decisions are made regarding an investment decision. It would be prudent to conduct more extensive research before making a final decision about any investments.
Technical Analysis
Lumen Technologies’ (EURONEXT: LMT) stock price has experienced a decrease over the last several months, currently trading just above its 50-day moving average of EUR1.36 but below its 200-day moving average of EUR2.10. Additionally, Lumen’s last reported volume – 13,642,189 – represents 16.39% less than their average volume of 16,318,400.
Over the past week, this stock has shown a high level of volatility, with an average intraday variation of 2.58% and its highest amplitude being 7.03% (last week). This high degree of variability was also reflected in its performance over the previous month and quarter periods; they saw average intraday variations of 2.11% and 5.34%, respectively.
According to the stochastic oscillator, an indicator used to track overbought and oversold conditions, Lumen Technologies stock is currently considered oversold (=20), suggesting it may be undervalued and likely set for an eventual rebound in near future.
Lumen Technologies’ current stock price presents investors with an opportunity to consider entering the market at potentially reduced costs, though, as with any investment decision, it’s vital that they carefully consider all available information and consult a financial advisor prior to making their own decisions.
Quarter Analysis
Lumen Technologies is currently experiencing negative sales growth of 8.4% for this quarter and 8.9% for next, which suggests revenue is falling off, prompting investors to become concerned.
According to estimates for both the current quarter and next, growth estimates for this company have decreased significantly; they range between negative 97% and 160% respectively, indicating that its growth is anticipated to decline substantially in coming quarters.
As reported by Forbes, the company’s year-over-year quarterly revenue growth has declined by 17.1% year over year with twelve trailing months revenue standing at 14.84B; this indicates a reduction in their total revenues over the past year.
Overall, investors should proceed with caution when investing in Lumen Technologies given its negative sales growth and declining revenues. Further investigation may reveal whether any contributing factors exist that contribute to these negative trends and assess Lumen’s long-term potential.
Equity Analysis
Lumen Technologies currently boasts a negative trailing twelve months EPS of EUR-11.49, indicating it is not producing profits for shareholders. Furthermore, their return on equity (ROE) for the twelve trailing months stands at -153.72% which suggests they are not effectively using shareholder’s equity to generate profit for themselves.
Before investing in Lumen Technologies, investors should conduct a careful and detailed evaluation of its financial health and growth prospects before considering an investment decision. Wait for positive EPS and ROE results before considering Lumen Technologies as an investment.
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