Why Is LUMN Stock Jumping 3% Premarket Today?

Earlier this week, Lumen’s fourth-quarter results showed another sales drop, but a top insider buy is reinforcing investor confidence.

• CEO Kathleen Johnson bought $499,900 worth of company shares on Thursday.
• LUMN stock declined about 30% over the last three sessions. 
• Stocktwits sentiment has climbed up over the week to ‘extremely bullish.’

Lumen Technologies, Inc.’s stock rose 3% in early premarket trading on Friday, rebounding after three straight sessions of losses.

CEO Kathleen Johnson bought $499,900 worth of company shares on Thursday, according to an exchange filing. Insider buys are typically viewed as a sign of management’s confidence in the business.

The trade comes as Lumen shares declined about 30% over the last three sessions. 

The company reported fourth-quarter results on Tuesday, which showed revenue declined 9% to $3.03 billion, in line with expectations, even as net loss narrowed sharply to $2 million from $85 million a year ago. The company forecast 2026 adjusted EBITDA of $3.1 billion to $3.3 billion.

Luman said at the time that it had completed its $5.75 billion transaction with AT&T, which significantly reduced its debt and interest expense.

CFRA Research analysts said the milestone provides crucial financial flexibility to accelerate AI connectivity investments. They believe the company will now shift toward higher-value digital services to drive margin improvement over time.

Monroe, Louisiana-headquartered Lumen provides high-speed internet, fiber networks, and data connectivity services to large businesses, governments, and cloud companies.

Despite the sharp slide, retail investors have turned bullish on the shares. On Stocktwits, retail sentiment moved higher, inverse to the stock price, and was ‘extremely bullish’ as of the last reading. Message volume for the ticker was ‘extremely high.’

“$LUMN Kate has graced our leaky ship to reassure us as this ship is on the way to glory no matter what the curmudgeons among us in the fickle markets have to say,” remarked a user. 

Lumen shares are now down about 20% year to date. They gained by over 46% last year.

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