Lumen shareholders: Who owns the most LUMN stock?
Lumen Technologies (LUMN) has seen its stock price fall 54% this year due to factors such as rising interest rates, high inflation, and a slowing global economy.
The US firm’s third quarter results were also disappointing, with stock market analysts highlighting how revenue declines remained steep.
But what does this mean for LUMN shareholders? Will better days be ahead for the business or are these challenging times set to continue? In this piece we examine the company’s background, reveal what analysts are expecting, and look at who are the current shareholders of Lumen.
What is Lumen?
Lumen is a multinational technology company that helps businesses capitalise on emerging applications and power the so-called fourth industrial revolution. These include colocation and data centre services, and data transportation, as well as broadband and phone services across 37 states.
The company, whose origins date back to 1930, is one of the largest telecommunications carriers in the US, having undergone various mergers and acquisitions (M&As) over the years. It was called Century Telephone when it listed on the New York Stock Exchange (NYSE) on 24 October 1978. It then changed to CenturyTel and CenturyLink before being renamed Lumen in September 2020.
What is your sentiment on LUMN?
How has the share price performed?
It has not been a great year for Lumen shareholders, with the stock price down 54% year-to-date (YTD), from $12.70 in early January to $5.88 as market close on 23 November 2022.
As of 24 November, the company’s trailing returns over the past three years stand at -15.98, compared to the -2.19 for the telecom services industry, according to Morningstar data.
Who owns LUMN shares?
Let’s look at who the shareholders of Lumen are. The company is 78.95% owned by institutional shareholders, 12.15% by insiders and 8.89% retail investors, according to WallStreetZen.
Lumen has 1,450 institutional owners and shareholders that have filed 13D/G or 13F forms with the US Securities Exchange Commission (SEC), according to Fintel.
But does it matter who are Lumen shareholders? Well, yes. It’s very important to know who owns a company’s shares as this can influence how it is run and the performance of its stock price. Most companies will have a variety of investors, ranging from individuals buying a few shares to global institutions with multi-million dollar stakes.
It’s worth keeping an eye on the split between institutions, which can include fund management houses and hedge funds; retail shareholders; and company insiders. Those with significant stakes will generally try to use their holding to push for a seat on the board of directors. This will give them more influence over its future direction.
Investors should also monitor share transactions. If a major investor or institution suddenly buys a lot of stock – or decides to offload existing holdings – this can affect the stock price. Whether the effect is positive or negative will depend on the situation.
If senior executives are selling significant positions, then investors may be a red flag. However, a rival company buying a stake in the business may suggest a takeover is on the cards and result in the shares rising in value as demand for them increases.
Lumen shareholders: The five biggest LUMN holders
So, who owns the most shares of Lumen – and who are the Lumen major shareholders?
Vanguard Group
US-based Vanguard, which has forged an enviable reputation for index tracking over many decades, is Lumen’s biggest shareholder, according to MarketBeat. It has 118,388,245 LUMN shares, with an overall market value of $861.83m. Its stake amounts to 11.44%.
The late Jack Bogle, Vanguard’s founder, is credited with helping to bring the concept of index tracking to the public and giving them a cheaper way to invest. Vanguard has declared it has a simple purpose: “To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success.”
BlackRock Inc
The global investment house is the second largest institutional investor in Lumen, with a 3.3% stake.
It currently holds 97,039,289 shares with a market value of $706.45m. This puts its stake in the business at 9.38%.
BlackRock provides services to institutional, intermediary and retail clients, offering solutions such as rigorous fundamental and quantitative active management approaches. Its products also include the iShares range of exchange traded funds, as well as other pooled investment vehicles.
Temasek Holdings Private Ltd
Temasek is a global investment company founded in 1974. It’s based in Singapore but has 12 offices across eight countries. It’s currently the third largest investor in Lumen, with 71,278,352 shares. The market value is $518.91m, giving it a 6.89% stake in the business.
Temasek had a $297bn portfolio, as of 31 March 2022, which spans industries such as financial services, transport, technology and real estate. It has stated: “We are mostly invested in equities but do not set limits for geographies, sectors, or asset classes. Our investment activities are guided by our view of long term structural trends.”
State Street Corp
The US-based financial services firm provides a wide range of services, including investment management, research and trading. It is the fourth largest investor in Lumen, with 61,929,635 shares and a total market value of $450.85m, giving it a 5.98% stake.
State Street Corp has stated: “As an essential partner to institutional investors, our purpose is to help create better outcomes for the world’s investors and the people they serve.” State Street Global Advisors, its investment management business, is the world’s fourth-largest asset manager and a pioneer in ETF and index investing.
First Trust Advisors LP
First Trust Advisors, which operates as an investment advisory firm, is the fifth largest investor in Lumen with a 1.52% stake. It had 15,765,686 shares, as of 15 November, with a market value of $114.77m.
First Trust Advisors LP and First Trust Portfolios LP were founded in 1991. The company has insisted it’s “single-minded” about providing trusted investment products and advisory services. “Everyone in our company is encouraged to work diligently and respectfully to deliver superior products, services and results,” it has stated.
Final thoughts
Lumen Technologies is rated as a ‘moderate sell’, according to the views of nine analysts compiled by TipRanks. Five have it as a ‘hold’ and four as a ‘sell’. Their consensus view is the stock could reach $6.88, which would represent a potential upside of 17.11% over the $5.88 closing price on 23 November 2022. The forecasts ranged from $5 to $8.
The stock has a ‘hold’ rating, according to the views of six analysts compiled by MarketBeat. Their consensus view is the stock could rise 21.48% to $7.14. The highest prediction was for it to reach $8, with the lowest coming in at $6.
In a note, Matthew Dolgin, equity analyst at Morningstar, pointed out Lumen didn’t have a good third quarter, mainly due to revenue declines remaining steep:
Dolgin has lowered the $16 fair value estimate to $14 but is relatively upbeat about its future prospects, adding:
While it may be useful to know who owns the most shares of Lumen Technologies, it shouldn’t be used as a substitute for your own research. Always conduct your own due diligence, looking at the latest stock news, a wide range of analyst commentary, technical and fundamental analysis.
Remember, past performance does not guarantee future returns. And never trade with money you cannot afford to lose.
FAQs
How many Lumen shares are there?
Lumen Technologies shares outstanding for the quarter ending 30 September 30 2022 were 1.017 billion, representing a 4.88% decline year-over-year (YOY).
How many shareholders does Lumen have?
Lumen has 1,450 institutional owners and shareholders that have filed 13D/G or 13F forms with the Securities Exchange Commission (SEC).
Who owns the Lumen company?
The company has a mix of investors. It’s 78.95% owned by institutional shareholders, 12.15% by insiders and 8.89% by retail investors.
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