Why Lumen Technologies Stock Dropped by More Than 8% Today
One of the tougher telecom stocks to own, Lumen Technologies (NYSE: LUMN), couldn't make it over the rise of Hump Day. On Wednesday, the company's share price fell by more than 8%, on a steep price-target cut by an analyst. That was a notably worse performance than that of the S&P 500 index; it fell by a relatively light 0.5% on the day.
Well before market open this morning, UBS (NYSE: UBS) prognosticator Batya Levi announced a 50% price target cut on Lumen's stock. The new level is $2.50, down from the preceding $5. Levi maintained a neutral recommendation on the company.
The reasons for the move were unclear. Interestingly, it comes mere days after very good Lumen news hit the headlines. The company announced the launch of a new product line, ExaSwitch, aimed at helping clients with bandwidth management across data centers (the facilities where banks of servers are stored).
Source Fool.com
