Lumen CEO Scooped Up $1 Million In LUMN Stock After 32.9% Fall 

• Lumen Technologies released its Q3 report on Tuesday.
• The LUMN stock fell 32.9% after the release of the Q3 report. 
• The LUMN stock closed at $1.12 with a gain of 5.66% in the past intraday session.

Lumen Technologies (NYSE: LUMN) stock price fell about 32.9% on Wednesday after the release of the Q3 report. The price broke the $1 psychological level and was the most significant single-day decline on record. The decline continued and the price touched as low as $0.78 in Thursday’s session. 

However, the sudden increase in the participation of sellers forced the LUMN stock price to melt down beneath the 20-day and 50-day EMAs. After Lumen’s stock extended sharp declines toward the lowest level in 42 years, the company’s CEO, Kate Johnson, scooped up $1 Million Lumen shares purchase. 

Johnson spent $970,000 on the purchase, which was done at the average price of $0.97. Hence, the stock price surged about 5.66% on the Friday session and closed at $1.12. Currently, the price is hovering above the $1 psychological level, which has triggered a positive sentiment. 

If Lumen’s stock price attracts more buyers and the bullish sentiment occurs in the future, the price might bounce back towards the $1.50 resistance level. On the contrary, if the prolonged bearish dominance remains constant, the price might retest the annual low of $0.78. It may melt further towards the $0.65 mark. 

Q3-2023 Report Of Lumen Technologies Inc.  

The third quarter financial report drastically impacted the price action, which can be observed on the weekly candlestick chart. The Lumen’s announced its Q3 report on October 31, 2023. The reported earnings of -$0.09 per share, compared with Zacks Consensus Estimate of $0.06. Its ESP negative surprise was -250%. 

The primary factor affecting was the -25% of EPS outcome, which created the negative sentiment aftermath of the quarterly report release. Meanwhile, Lumen reported revenue of $3.64 Billion. It is down 17.1% year to year on a reported basis and declining 1% on a sequential basis. 

What does Marc’s Chaikin Money Flow suggest?

Due to the sudden increase in the trading volume, the Chaikin Money Flow (CMF) stands at 0.22. It indicates more accumulation has taken place as the nearer closing price is to the high. On the other hand, the Relative Strength Index (RSI) is hovering below the 50-neutral zone. That denotes a slight weakness in the market. 

The Lumen (NYSE: LUMN) stock price is trading below the 20, 50, 100, and 200-day EMAs, suggesting a stronghold of the bears. However, the price suffered drastically from the prolonged downtrend, which started in August 2022. The consistent downtrend shifted the year-to-date and three-month returns to negative 78.87% and 32.93%, respectively. 

Conclusion

The market structure and price action of Lumen Technologies Inc (NYSE: LUMN) stock witnessed a sharp decline toward the lowest level in 42 years. The LUMN shares sold off sharply after the Q3 report release. However, the company’s chief executive, Kate Johnson, has been buying the stock.  

Technical Levels 

Major resistance: $6.09 and $2.70

Major support: $1.27 and $0.7801

Disclaimer

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