1 day Ago
Aleksandr_Vorobev/iStock via Getty Images Lumen Technologies Inc. ( NYSE: LUMN ) has neared (and shortly fallen below) the dreaded $1 stock price level as investors appear to lose hope that the over-leveraged Telco could pull off a major turnaround. Lumen Technologies restructured its debt and postponed debt maturities in a deal with creditors in November 2024 in an attempt to buy the company time and focus on its restructuring.
With that said, Lumen Technologies is confronted with so much debt that it is suppressing the remaining equity value. With the business also stuck in restructuring and sales continuing to decline, I think that investors don’t have much to look forward to in terms of recovery gains. Though I threw in my towel the last time I covered the Telco, it is hard to see a compelling upside case for Lumen Technologies.
Sell. My Rating History My last stock classification on Lumen Technologies was Sell as I cut my losses after a major debt restructuring was agreed between the Telco and its creditors last year. Lumen Technologies continued to post a substantial decline in its sales in the first quarter and the leverage ratio does not seem to be sustainable.
I think that other Telco’s in the sector, particularly from a leverage point of view, offer a much better risk/reward relationship, with my favorite presently being AT&T . Consistent Erosion Of Lumen Technology’s Sales Base Lumen Technologies continues to see a falling sales, a reflection of asset divestm.
