CenturyLink Inc. slashed its shareholder dividend by more than half, causing its stock price to tumble around -9.4% Thursday.
The wireless telecom company’s board agreed to lower yearly dividend to $1 from $2.16 – something that the company expects would free up cash for facilitating its debt repayment. As of Dec. 31, its long-term debt stood at $35.4 billion (compared to $20 billion of shareholder equity).
Along with announcing the dividend cut, CenturyLink also reported its fourth quarter adjusted earnings of 37 cents a share – which is substantially higher than the year-ago quarter’s 18 cents. On an unadjusted basis, the company incurred a loss of $2.41 billion, (or $2.26 a share) for the quarter, compared to a profit of $1.13 billion (or $1.06 a share) of the year-ago period.
CenturyLink’s revenue declined -3.8% year-over-year to $5.78 billion in the fourth quarter.
LUMN saw its Momentum Indicator move below the 0 level on March 21, 2024. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 82 similar instances where the indicator turned negative. In of the 82 cases, the stock moved further down in the following days. The odds of a decline are at .
LUMN moved below its 50-day moving average on April 01, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for LUMN crossed bearishly below the 50-day moving average on April 04, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 21 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LUMN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for LUMN entered a downward trend on April 16, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where LUMN's RSI Indicator exited the oversold zone, of 39 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 65 cases where LUMN's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The 50-day moving average for LUMN moved above the 200-day moving average on April 17, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
LUMN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.535) is normal, around the industry mean (5.048). P/E Ratio (2.495) is within average values for comparable stocks, (144.473). Projected Growth (PEG Ratio) (17.143) is also within normal values, averaging (9.572). Dividend Yield (0.189) settles around the average of (0.091) among similar stocks. P/S Ratio (0.099) is also within normal values, averaging (13.029).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. LUMN’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LUMN’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of telecommunications services
Industry WirelessTelecommunications