Lumen Technologies (NYSE:LUMN) Shares Gap Down – Should You Sell?

Lumen Technologies, Inc. (NYSE:LUMN)’s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $8.46, but opened at $7.29. Lumen Technologies shares last traded at $6.7490, with a volume of 4,772,602 shares traded.

Lumen Technologies News Summary

Here are the key news stories impacting Lumen Technologies this week:

• Positive Sentiment: Q4 adjusted EPS surprised to the upside, beating estimates and showing a return to profitability on an adjusted basis — a near-term catalyst that supports valuation re-rating. Lumen Reports Better-Than-Expected Q4 Earnings, Revenues Down Y/Y
• Positive Sentiment: The company closed a $5.75B transaction with AT&T that cut total debt by ~$4.8B, lowered interest expense roughly 45% and reduced capex — materially improving cash flow flexibility for network modernization and growth initiatives. Lumen Technologies Reports Solid Fourth-Quarter and Full-Year 2025 Results; Completes AT&T Transaction
• Positive Sentiment: Management guided to stronger-than-expected free cash flow for the year and said adoption of digital/enterprise products is rising — a narrative that supports longer-term profitability and deleveraging. Lumen forecasts upbeat free cash flow, sees rising adoption of its digital products
• Neutral Sentiment: Company is explicitly pivoting toward higher-margin enterprise and AI/edge-focused products (PCF, NaaS); this is strategic upside but will take time to show through in top-line growth. LUMN Q4 Deep Dive: Enterprise Focus and Network Investments Mark Strategic Pivot
• Neutral Sentiment: Earnings call transcript and slides are available for deeper detail — useful for investors who want management’s specifics on margins, capex and cadence of enterprise wins. Lumen Technologies, Inc. Q4 2025 earnings call transcript
• Negative Sentiment: Revenue declined about 8–9% year-over-year in Q4, underscoring persistent top-line pressure that limits near-term EPS upside despite cost cuts. Lumen Technologies shares fall as Q4 revenue declines 9% YoY
• Negative Sentiment: AIGH Capital sold ~2.55M LUMN shares (~$15.6M), a notable block trade that adds selling pressure and signals some investor lock-step exiting post-deal volatility. AIGH Capital Dumps 2.6 Million Lumen Technologies Shares In $15.6 Million Exit
• Negative Sentiment: Despite the beat, the company still reports negative net margin/ROE and sell-side forecasts a full-year EPS loss — factors that keep downside risk and valuation skepticism elevated. Lumen (LUMN) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates

Analysts Set New Price Targets

Several analysts recently issued reports on the stock. Wall Street Zen upgraded shares of Lumen Technologies from a “sell” rating to a “hold” rating in a research report on Sunday, November 9th. Royal Bank Of Canada upped their price target on shares of Lumen Technologies from $4.25 to $8.00 and gave the stock a “sector perform” rating in a research report on Tuesday, November 25th. Citigroup lowered Lumen Technologies from a “buy” rating to a “neutral” rating and set a $11.00 price target for the company. in a research note on Friday, October 31st. Zacks Research upgraded Lumen Technologies from a “hold” rating to a “strong-buy” rating in a research report on Thursday, January 8th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Lumen Technologies in a research note on Thursday, January 22nd. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Lumen Technologies presently has an average rating of “Hold” and a consensus target price of $7.25.

Lumen Technologies Stock Performance

The company has a market capitalization of $6.58 billion, a P/E ratio of -3.91 and a beta of 1.51. The firm’s fifty day moving average is $8.28 and its 200 day moving average is $7.03.

Lumen Technologies (NYSE:LUMN) last issued its quarterly earnings results on Tuesday, February 3rd. The technology company reported $0.23 earnings per share for the quarter, topping the consensus estimate of ($0.21) by $0.44. The firm had revenue of $3.04 billion for the quarter, compared to the consensus estimate of $3.04 billion. Lumen Technologies had a negative return on equity of 158.40% and a negative net margin of 13.02%.The company’s revenue for the quarter was down 8.7% on a year-over-year basis. During the same period in the prior year, the business posted $0.09 earnings per share. On average, analysts forecast that Lumen Technologies, Inc. will post -0.87 EPS for the current year.

Hedge Funds Weigh In On Lumen Technologies

A number of hedge funds and other institutional investors have recently modified their holdings of LUMN. UMB Bank n.a. lifted its position in shares of Lumen Technologies by 49.1% during the third quarter. UMB Bank n.a. now owns 4,105 shares of the technology company’s stock valued at $25,000 after buying an additional 1,351 shares during the last quarter. Farther Finance Advisors LLC increased its holdings in Lumen Technologies by 132.3% in the second quarter. Farther Finance Advisors LLC now owns 5,954 shares of the technology company’s stock valued at $26,000 after buying an additional 3,391 shares in the last quarter. MRP Capital Investments LLC raised its stake in shares of Lumen Technologies by 160.0% during the 2nd quarter. MRP Capital Investments LLC now owns 6,500 shares of the technology company’s stock worth $28,000 after buying an additional 4,000 shares during the period. Caitong International Asset Management Co. Ltd raised its position in Lumen Technologies by 3,527.9% during the second quarter. Caitong International Asset Management Co. Ltd now owns 6,639 shares of the technology company’s stock worth $29,000 after acquiring an additional 6,456 shares during the period. Finally, International Assets Investment Management LLC acquired a new position in shares of Lumen Technologies during the 4th quarter worth about $30,000. 66.19% of the stock is currently owned by institutional investors.

Lumen Technologies Company Profile

Lumen Technologies is a multinational technology company specializing in integrated network, edge cloud, security and collaboration services for enterprise and public sector clients. The company’s core offerings include high-capacity fiber and IP-based connectivity, managed edge computing solutions designed to accelerate applications and data processing closer to end users, and cybersecurity services ranging from DDoS protection to unified threat management. Through its unified portfolio, Lumen enables organizations to support digital transformation initiatives, modernize infrastructure and enhance operational resilience.

Leveraging one of the largest fiber footprints in North America, as well as infrastructure in Latin America and parts of Europe, Lumen connects customers across more than 60 countries.