LUMN Should I Buy
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Lumen Technologies Inc (LUMN) is not a strong buy for a beginner investor with a long-term strategy at this time. The company is undergoing a transformation and has announced a multi-year growth plan, but its current financial performance, technical indicators, and trading sentiment do not support an immediate buy decision. A hold is recommended until more concrete signs of financial improvement and growth materialize.
The MACD is negatively expanding, RSI is neutral at 25.902, and moving averages are converging, indicating no clear bullish signal. The stock is trading near its support level (S1: 7.129, S2: 6.759), with resistance levels at R1: 8.329 and R2: 8.699. The technical indicators suggest a weak trend with no immediate upward momentum.
The partnership with Anthropic to expand its fiber network across North America is expected to drive revenue growth and market share. The company also targets to increase adjusted EBITDA margins to the mid-30% range by 2030.
Insider selling by Director Diankha Linear raised concerns, and hedge funds have significantly increased their selling activity. The stock has declined over 16% since its Q4 earnings report, and financial growth is not expected until 2028.
In Q4 2025, Lumen's revenue dropped to $3.041 billion (-8.65% YoY), net income fell to -$2 million (-102.35% YoY), EPS dropped to $0 (-100% YoY), and gross margin decreased to 24.33% (-6.35% YoY). The company is facing financial pressures with no immediate signs of recovery.
Analysts have mixed views with mostly Neutral ratings. UBS raised the price target to $6, Citi lowered it to $10, and Goldman Sachs raised it to $7.25. Raymond James downgraded the stock to Market Perform, citing a lack of top-line growth for the next two years. Analysts acknowledge progress in balance sheet repair but remain cautious about revenue growth timelines.
