In the world of investing, sometimes the greatest opportunities arise from the most challenging circumstances. Lumen Technologies has recently experienced a surge in its stock price, even as broader market conditions remain turbulent. With a market value of approximately $6.63 per share, the company operates in the diversified telecommunication services sector, where it has been navigating through significant losses, including a net income loss of 10.3 billion. Despite these hurdles, Lumen boasts a robust cash position of $2.2 billion and a gross profit of 4.4 billion, suggesting potential resilience and recovery. With only one analyst rating it as a strong sell, the current environment may present a compelling buying opportunity for investors looking to capitalize on Lumen's future growth potential. Lumen Technologies has shown impressive returns in recent months, despite some mixed signals from its key indicators. The company seems to be nearing a pivotal moment that could lead to significant changes. Currently, the likelihood of financial distress for Lumen is below 35%, which is a positive sign for investors. As September approaches, it will be interesting to see if investors continue to engage with Lumen Technologies' stock.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Lumen Technologies income statement, its balance sheet, and the statement of cash flows. Potential Lumen Technologies investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Lumen Technologies investors may use each financial statement separately, they are all related. The changes in Lumen Technologies's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Lumen Technologies's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Lumen Technologies
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Lumen Technologies performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Lumen Technologies shares is the value that is considered the true value of the share. If
the intrinsic value of Lumen is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Lumen Technologies. Please read more on our
fundamental analysis page.
How effective is Lumen Technologies in utilizing its assets?
Lumen Technologies reports assets on its Balance Sheet. It represents the amount of Lumen resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Lumen Technologies aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Diversified Telecommunication Services space. To get a better handle on how balance sheet or income statements item affect Lumen volatility, please check the breakdown of all its
fundamentals.
Are Lumen Technologies Earnings Expected to grow?
The
future earnings power of Lumen Technologies involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Lumen Technologies factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Lumen Technologies
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Lumen
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Lumen Technologies earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Lumen Technologies dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Lumen one year expected dividend income is about USD0.08 per share.
As of the 9th of September 2024,
Dividends Paid is likely to drop to about 10.4
M. In addition to that,
Dividend Yield is likely to drop to 0.01.
Investing in stocks that pay
dividends, such as stock of Lumen Technologies, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Lumen Technologies must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Lumen Technologies. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Lumen Technologies Gross Profit
Lumen Technologies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Lumen Technologies previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Lumen Technologies Gross Profit growth over the last 10 years. Please check Lumen Technologies'
gross profit and other
fundamental indicators for more details.
Breaking it down
Many companies such as Lumen Technologies have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Lumen is distributed among investors.
Ownership Allocation
Lumen Technologies maintains a total of 1.02 Billion
outstanding shares. Over half of Lumen Technologies' outstanding shares are owned by
institutional investors. These institutional investors are typically referred to as corporate investors that shop for positions in a given instrument to benefit from reduced trade commissions. Please note that no matter how many assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.
| Retail Investors30.94% | | Institutions66.91% |
| Retail Investors | 30.94 |
| Insiders | 2.15 |
| Institutions | 66.91 |
Please be aware that individual investors typically purchase shares for their personal accounts and usually in smaller quantities compared to institutional investors. While they might influence Lumen Technologies' decisions if they own a significant combined portion of its shares, such influence is relatively rare. Conversely, institutional investors - like mutual funds, pension funds, hedge funds, and other investment companies - often have a substantial sway over Lumen Technologies' decisions due to their larger holdings.
Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The recent return on assets of Lumen suggests not a very effective usage of assets in August.
| Non Current Assets Total22.7 B | | | | | | |
| Non Current Assets Total | 22.73 Billion | 76.97 |
| Non Currrent Assets Other | 3.04 Billion | 10.3 |
| Other Current Assets | 1.08 Billion | 3.65 |
| Total Current Assets | 5.01 Billion | 16.98 |
| Intangible Assets | 4.67 Billion | 15.81 |
| Other Assets | 921.31 Million | 3.12 |
| Net Tangible Assets | (7.92 Billion) | -26.84 |
"Opportunities don't happen, you create them." - Chris Grosser. Lumen Technologies is showing potential as a strong buy despite facing market challenges. With a current market valuation of $22.45 billion and a price-to-sales ratio of just 0.49, the stock appears undervalued compared to its peers in the telecom services industry. The company reported cash flow from operations of $2.16 billion, indicating healthy operational efficiency. Although Lumen has reported losses of 10.3 billion in net income from continuing operations, its five-year return stands at an impressive 10.47%, suggesting that the stock could rebound as it navigates through its financial restructuring. With a significant institutional ownership of 66.91%, investor confidence in Lumen's long-term prospects remains strong.
Over 3 percent roll up for Lumen Technologies. What does it mean for investors?
Lumen Technologies is showing signs of reduced volatility, with its downside deviation dropping to 4.53. This could mean a more stable investment environment, making the stock more appealing to cautious investors. Recently, Lumen's stock climbed over 3%, and this newfound stability might attract those looking for less turbulent options.
However, Lumen still experiences above-average volatility, which can be tricky for investors. Understanding these trends can help in timing the market.
During bear markets, the higher volatility can push Lumen's stock price down, causing stress for shareholders. This often leads investors to rethink their portfolios and explore other financial options as prices decline.Lumen Technologies has shown remarkable resilience today, managing to climb even as the broader market faces a downturn. This performance may catch the eye of investors, especially considering the stock's potential upside price of
20.37. While the overall analyst consensus remains a cautious "Hold," with a mix of sells and holds, the company's current valuation suggests that it could be undervalued at around
6.63. For those willing to navigate the uncertainties, Lumen could present an intriguing opportunity, especially if it continues to defy market trends. As always, careful consideration and research are key before making any investment decisions..
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Lumen Technologies. Please refer to our
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