Kerrisdale Capital is Short Lumen Technologies: What you should know – Lumen Technologies (NYSE:LUMN)

Lumen Technologies, Inc. LUMN Shares traded lower on Tuesday after Kerrisdale Capital announced a short position and published a pessimistic report on the stock.

The details:

In its report titled “AI-N’t Gonna Fix This Mess,” Kerrisdale Capital expressed doubts about an AI-enabled turnaround at Lumen.

“Lumen has used a series of headlines to portray the rise of AI as the key to reviving the company’s fading turnaround hopes, but in reality this is just a transparent attempt to latch onto the hottest topic in the market,” the short seller said.

Benzinga reached out to Lumen Technologies for comment, but the company did not immediately respond.

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Kerrisdale Capital claimed that Lumen’s recently announced contracts were an attempt to raise capital amid declining recurring revenue and liquidity concerns. The short seller pointed to an 8.6% decline in revenue in Lumen’s core business segment last quarter, the worst in the company’s history.

Lumen Technologies shares are falling on Tuesday as investors digest the short report. Lumen’s stock is up more than 200% over the past month and is trading well above its 50-day moving average of $2.75, according to data from Benzinga Pro.

Will LUMN stock rise?

To assess whether Lumen Technologies shares will continue to rise from current levels, it is advisable to take a look at analyst forecasts.

Wall Street analysts have an average 12-month price target of $3.64 for Lumen Technologies. The highest price target is currently $7 and the lowest price target is $1. Of all the analysts covering Lumen Technologies, none have a positive rating, 4 have a neutral rating, and 4 have a negative rating.

In the last month, 8 analysts have adjusted their price targets. Here’s a look at the most recent price target changes (analyst ratings). Benzinga also tracks the most accurate analysts on Wall Street. See how analysts covering Lumen Technologies have performed in the recent past.

Stocks don’t move in a straight line. The average stock market return is about 10% per year. Lumen Technologies is up 192.6% year to date. The average analyst price target suggests the stock could fall further.

For a comprehensive look at everything you need to know about Lumen Technologies, click here. If you want to go a step further, there’s no better tool than Benzinga Pro to help you do just that. Start your free trial today.

LUMN price promotion: Lumen Technologies shares are down 10.5% at $5.48 as of publication Tuesday, according to Benzinga Pro.

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