Shares on Pace for Lowest Close Since 1984
- Lumen Technologies Inc. shares down 24.3% in Wednesday morning trading
- On track for largest one-day percentage decline on record
- Lowest close since October 1984
- Disappointing commentary on revenue-growth expectations
- Management’s expectation of better performance pushed back until mid-2024
- Sell ratings from analysts with target prices as low as $1
- Scaling back fiber-deployment plans
- Working to reach an agreement with creditors to refinance balance sheet
Lumen Technologies Inc. shares are experiencing a significant decline, with a 24.3% drop in Wednesday morning trading. This puts the stock on track for its largest one-day percentage decline on record and its lowest close since October 1984. The disappointing commentary on revenue-growth expectations has outweighed news of an agreement with creditors. Management’s expectation of better performance has been pushed back until mid-2024, causing concern among investors. Analysts have given sell ratings on the stock, with target prices as low as $1. Additionally, Lumen is scaling back its fiber-deployment plans, which has raised further concerns. The company is currently working to reach an agreement with its creditors to refinance its balance sheet. Overall, the outlook for Lumen’s stock remains challenging, and positive organic revenue growth is needed to regain investor support.
Factuality Level: 7
Factuality Justification: The article provides information about Lumen Technologies Inc. shares experiencing a significant decline in performance and disappointing revenue-growth expectations. It includes quotes from analysts and their opinions on the company’s prospects. The information seems to be based on factual events and statements from analysts, but it lacks additional context and perspectives.
Noise Level: 3
Noise Justification: The article provides information about Lumen Technologies Inc.’s poor performance and disappointing revenue-growth expectations. It includes quotes from analysts and highlights concerns about the company’s decision to scale back fiber-deployment plans. The article also mentions Lumen’s efforts to reach an agreement with creditors. However, the article lacks in-depth analysis, scientific rigor, and actionable insights. It mainly focuses on the stock’s decline and analysts’ ratings.
Financial Relevance: Yes
Financial Markets Impacted: Lumen Technologies Inc. shares
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the performance of Lumen Technologies Inc. shares, which is relevant to financial markets. However, there is no mention of an extreme event.
Public Companies: Lumen Technologies Inc. (LUMN)
Key People: Nick Del Deo (MoffettNathanson analyst), Michael Rollins (Citi Research analyst), Frank Louthan (Raymond James analyst)
Reported publicly:
www.marketwatch.com 
