Should You Sell Lumen Technologies (LUMN)?

Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -15.88% compared to a return of -4.88% for the S&P 500 Index and -5.62% for the Russell 1000 Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Longleaf Partners discussed stocks like Lumen Technologies, Inc. (NYSE:LUMN) in the Q3 2022 investor letter. Headquartered in Monroe, Louisiana, Lumen Technologies, Inc. (NYSE:LUMN) is a technology and communications company. On October 17, 2022, Lumen Technologies, Inc. (NYSE:LUMN) stock closed at $6.88 per share. One-month return of Lumen Technologies, Inc. (NYSE:LUMN) was -19.63% and its shares lost 43.97% of their value over the last 52 weeks. Lumen Technologies, Inc. (NYSE:LUMN) has a market capitalization of $7.123 billion.

Here is what Longleaf Partners specifically said about Lumen Technologies, Inc. (NYSE:LUMN) in its Q3 2022 investor letter:

"Lumen Technologies, Inc. (NYSE:LUMN) – Global fiber company Lumen was the top detractor in the quarter. In September, the company announced a new CEO, Kate Johnson, would take over for Jeff Storey. Johnson has a strong track record of delivering organic revenue growth, the primary area where Lumen has struggled. Johnson held previous roles at GE and Microsoft, where she most recently served as head of Microsoft US and doubled her division’s revenue in only four years. Multiple checks through our network vouch for her and suggest this leadership change is a positive upgrade that will bring the discipline and focus on sales that Lumen has been missing. The market reacted negatively with concern over the potential for another dividend cut or strategy change. We are confident the stock price reaction is highly overblown versus any impact that a potential dividend cut would have on value per share. The stock now trades at 4.5x EBITDA, and we believe the best value accretive capital allocation move today is share repurchase. Shortly after quarter end, Lumen closed on the sale of part of its consumer business to Apollo, further improving its balance sheet and business mix."

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Lumen Technologies, Inc. (NYSE:LUMN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Lumen Technologies, Inc. (NYSE:LUMN) at the end of the second quarter which was 30 in the previous quarter.

We discussed Lumen Technologies, Inc. (NYSE:LUMN) in another article and shared the list of top technology stocks that are too cheap to ignore. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.


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Disclosure: None. This article is originally published at Insider Monkey.