Estimating Centurylink (NYSE:LUMN) price for November 2022.

LUMN
 Stock
  

USD 5.51  0.08  1.43%   

The goal of this thesis is to forecast a future value of Centurylink using technical analysis. What exactly are Centurylink institutional investors should expect in November?
Published over a month ago
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Centurylink has a beta of 1.4673. Let's try to break down what Centurylink's beta means in this case. Centurylink returns are very sensitive to returns on the market. As the market goes up or down, Centurylink is expected to follow. The beta indicator helps investors understand whether Centurylink moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Centurylink deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Lumen Technologies. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Lumen Technologies

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Lumen Technologies' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Lumen Technologies in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Lumen Technologies. Your research has to be compared to or analyzed against Lumen Technologies' peers to derive any actionable benefits. When done correctly, Lumen Technologies' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Lumen Technologies.

How important is Lumen Technologies's Liquidity

Lumen Technologies financial leverage refers to using borrowed capital as a funding source to finance Lumen Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lumen Technologies financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Lumen Technologies's total debt and its cash.

How does Lumen utilize its cash?

To perform a cash flow analysis of Lumen Technologies, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Lumen Technologies is receiving and how much cash it distributes out in a given period. The Lumen Technologies cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Lumen Technologies Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 5.65 Billion

Centurylink exotic insider transaction detected

Legal trades by Lumen Technologies insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Centurylink insider trading alert for general transaction of common stock by Andrea Genschaw, SVP and Controller, on 17th of August 2022. This event was filed by Lumen Technologies Inc with SEC on 2022-08-17. Statement of changes in beneficial ownership - SEC Form 4. Andrea Genschaw currently serves as senior vice president principal accounting officer, controller of Centurylink [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down

Centurylink exhibits very low volatility with skewness of -0.43 and kurtosis of 2.09. However, we advise investors to further study Centurylink technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Centurylink's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Centurylink's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

High level of complacency for Centurylink after the latest price slide

The skewness is down to -0.43 as of today. Centurylink exhibits very low volatility with skewness of -0.43 and kurtosis of 2.09. However, we advise investors to further study Centurylink technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Centurylink's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Centurylink's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Take On Centurylink

Whereas some firms in the telecom services industry are either recovering or due for a correction, Centurylink may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Centurylink valuation and our trade advice on Centurylink is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Centurylink.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Lumen Technologies. Please refer to our Terms of Use for any information regarding our disclosure principles.

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