LUMN - Why Lumen Stock Gained After Big Volatility Today
2024-07-01 16:37:53 ET
Lumen Technologies (NYSE: LUMN) stock closed out today's trading with moderate gains. The company's share price ended the daily session up roughly 1%, according to data from S&P Global Market Intelligence . The stock had been down as much as 11% earlier in the day's trading.
Lumen initially fell today following bearish analyst coverage. Goldman Sachs initiated coverage on the stock with a one-year price target of $1 per share. But the S&P 500 index closed out the day up roughly 0.3%, and positive gains for the broader market helped reverse the sell-off for Lumen stock.
In contrast to its sell rating on Lumen stock, Goldman Sachs analysts actually see some favorable dynamics ahead for the U.S. telecommunications industry. Most notably, the financial services company sees competitive pressures and the need for heavy capital expenditures moderating. But it doesn't believe that these trends will be a major benefit for Lumen. With today's gains, Goldman's $1 per-share price target would imply downside risk of roughly 10%.
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Why Lumen Stock Gained After Big Volatility Today