On February 8, 2023, Citigroup downgraded their outlook for Lumen Technologies from Neutral to Sell.

Analyst Price Forecast Suggests 37.63% Upside

As of February 8, 2023, the average one-year price target for Lumen Technologies is $6.87. The forecasts range from a low of $5.05 to a high of $9.24. The average price target represents an increase of 37.63% from its latest reported closing price of $4.99.

The projected annual revenue for Lumen Technologies is $15,033MM, a decrease of 13.99%. The projected annual EPS is $0.76.

Lumen Technologies Declares $0.25 Dividend

Lumen Technologies said on August 18, 2022 that its board of directors declared a regular quarterly dividend of $0.25 per share ($1.00 annualized). Shareholders of record as of August 29, 2022 received the payment on September 9, 2022. Previously, the company paid $0.25 per share.

At the current share price of $4.99 / share, the stock’s dividend yield is 20.04%. Looking back five years and taking a sample every week, the average dividend yield has been 9.48%, the lowest has been 6.57%, and the highest has been 15.35%. The standard deviation of yields is 1.91 (n=226).

The current dividend yield is 5.53 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.00. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is -1.00%.

What are large shareholders doing?

Temasek Holdings holds 71,278,352 shares representing 6.89% ownership of the company. In it’s prior filing, the firm reported owning 72,659,407 shares, representing a decrease of 1.94%. The firm decreased its portfolio allocation in LUMN by 28.34% over the last quarter.

Southeastern Asset Management holds 58,627,580 shares representing 5.67% ownership of the company. In it’s prior filing, the firm reported owning 61,990,676 shares, representing a decrease of 5.74%. The firm decreased its portfolio allocation in LUMN by 24.64% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 30,958,756 shares representing 2.99% ownership of the company. In it’s prior filing, the firm reported owning 30,441,981 shares, representing an increase of 1.67%. The firm decreased its portfolio allocation in LUMN by 29.26% over the last quarter.

VIMSX – Vanguard Mid-Cap Index Fund Investor Shares holds 23,881,370 shares representing 2.31% ownership of the company. In it’s prior filing, the firm reported owning 23,783,679 shares, representing an increase of 0.41%. The firm decreased its portfolio allocation in LUMN by 29.95% over the last quarter.

DVY – iShares Select Dividend ETF holds 22,065,846 shares representing 2.13% ownership of the company. In it’s prior filing, the firm reported owning 21,679,616 shares, representing an increase of 1.75%. The firm decreased its portfolio allocation in LUMN by 30.29% over the last quarter.

Fund Sentiment

There are 1429 funds or institutions reporting positions in Lumen Technologies. This is a decrease of 34 owner(s) or 2.32%.

Average portfolio weight of all funds dedicated to US:LUMN is 0.1807%, a decrease of 25.3129%. Total shares owned by institutions increased in the last three months by 0.92% to 920,265K shares.

Lumen Technologies Background Information
(This description is provided by the company.)

Lumen is guided by its belief that humanity is at its best when technology advances the way we live and work. With approximately 450,000 route fiber miles and serving customers in more than 60 countries, it delivers the fastest, most secure platform for applications and data to help businesses, government and communities deliver amazing experiences.

This article originally appeared on Fintel

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.