Think Twice Before Hating CenturyLink, Inc. (NYSE:CTL) Shares

In the recent trading session, CenturyLink, Inc. (NYSE:CTL) shares gained 0.69% or 0.09 points to close at $13.08 with a thin trading volume of 3.046 million shares. It opened the trading session at $12.99, the shares rose to $13.12 and dropped to $12.88, the range by which the price of stock traded the whole session. The company now has a market cap of $14.3 billion and currently has 1.1 billion outstanding shares. CenturyLink, Inc. (CTL) stock has plunged -8.13 percent of market value in 21 trading days.

CTL stock’s trailing 3-year beta is 0.9, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was -$7.4 share in the trailing 52 weeks. The stock’s value fallen -1.67 percent year to date (YTD) compared to a decline of -18.81 percent in 52 week’s period. The firm’s shares are still trading -20.87 percent below its 1-year high of $16.53 and 35.68 percent up from 52-week low of $9.64. The average consensus ranking on the company is 3.1, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a hold.

CenturyLink, Inc. (CTL) is most likely going to rise -1.3 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $16 as 12-month high price target. This represents a whopping 22.32 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $13.5, which means a return possibility of 3.21 percent in comparison with the closing price of the stock of $13.08 in recent trading session. The lowest price set for the stock is $10 which is just above -23.55 percent from CTL share’s price at the end of session.

Past records have indicated that shares in CenturyLink, Inc. declined on 22 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of CTL’s Q4 earnings on February 11. Analysts are predicting revenue to suffer decline of -4.1 percent to $5.54B in the financial fourth quarter, while EPS will soar by about -10.81 percent to $0.33 per share. In the last quarter, it’s earnings of $0.34 per share came better than the $0.32324, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $5.78B, missing the $5.78B analysts had expected. Earnings are seen to rise by -434.9 percent this year, 8.44 percent in the coming year and the trend continues by 7.4 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at CenturyLink, Inc. (NYSE:CTL) and observe the pattern. The earliest insider trade happened on 12/10/2019. SIEGEL LAURIE parted with a total of 3.07 thousand shares of the firm at average share price of $14. The total amount for the sale was set at $43.01 thousand. On completing this exchange, the Director account balance was 59.36 thousand shares. The stock lost -6.57 percent from that insider sale. On 05/30/2019, HANKS WILLIAM BRUCE, Lead Independent Director, did a purchase of 10 thousand shares at a price of $10.63 per share. This increased 106.3 thousand shares to the insider’s fortune and the stock experienced a 23.05 percent rally in price since the news became public. This exchange saw 92.17 thousand shares get into the Lead Independent Director account.

On 05/23/2019, Director GLENN T MICHAEL recorded a purchase transaction valued at $196.6 thousand. The purchase at $9.83 a share has added 20 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed 33.06 percent increase since the transaction reporting date. The company insider is left with 119.07 thousand shares remaining in the account. STOREY JEFFREY K, who works as President & CEO at the company, performed a purchase of 50 thousand shares in a transaction worth $491.5 thousand. The acquisition recorded on 05/23/2019 was priced at $9.83 per share. The stock price soared 33.06 percent since the transaction. STOREY JEFFREY K currently holds a stake of 3.25 million in CTL stock which is worth $42.45 million after the insider buying.

The stock is lingering around the initial support level of $12.85. After this, the following support is at the zone of $12.72. Up until the time the CTL stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 43.45 on the daily chart, and this may be a cause for concern. In case the price goes below $12.72 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $13.15 level may cause a pull-back move approaching $13.32 mark.

CenturyLink, Inc. (CTL) shares are trading at a P/E ratio of -1.76 times earnings posted in the trailing 12 months. The industry CTL deals with has an average P/E of 17.99. Its P/B ratio is standing at 1.04X compared to the 2.2 industry average. It is additionally sporting a 0.88 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.35. CenturyLink, Inc. has a 54.8% gross profit margin, with its operating margin around -23.8%. Alongside this, the company’s net profit margin currently stands at -35%.