Spring Forward With CenturyLink, Inc. (CTL)

If you’re on the hunt for stocks to watch today, CenturyLink, Inc. (NYSE:CTL) is a stock to give close attention to. The company shares are trading 3.75% or 0.42 points up from last closing price of $11.2, reaching $11.62 at last check. The CTL share price has risen in 3 of the last 5 days and is up 6.57% over the past week. It will be exciting to see whether the stock manages to continue increasing or take a minor break for the next few days. The move came on weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -9,092,325 shares, and in total 5.578 million shares valued at $64.816 million were seen changing hands compared with 14.67 million shares valued at $164.307 million recorded at the previous session. You should take into consideration that a falling volume on higher prices causes divergence and may be an early warning about possible changes in CTL stock for the next couple of days.

CenturyLink, Inc. (CTL) shares have notched a 3-month gain of about 6.57%, but has still tumbled -26.07% year to date. By comparison, the stock sank -46.59% over the past 12 months, while it slipped -8.2% over the 1 month. The company’s market cap is around $12.12B, with its short interest ratio standing at 7.84%.

In the current trading session for CTL, the stock witnessed two major price actions, it rose to a high of $11.72 and was down as much as $11.17 at one point. The high recorded is very low when compared to their 52-week high which is $9.64. The 52-week high is now at -51.69 distance from current price. Their recent low of $24.2 represents a 21.27% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for CTL is $12.58, this is below the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.

The stock of CenturyLink, Inc. earned $-7.42 per share in the trailing 12 months and has a P/E ratio of -1.57. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 21.33 and lower compared to the sector’s average of 28.09. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. CTL also has P/S multiple of 0.55. This is smaller versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 4.13x.

The company recorded an interesting insider purchase transaction by the Insider on May 30, 2019. A Securities and Exchanges Commission filings show that William Bruce Hanks bought a total of 10,000 CTL shares that day for a sum of around $106,300. The filings show that the insider stake has now grown to 92,172 shares, currently worth $1,071,039. CenturyLink, Inc. (CTL) insiders have acquired 281,472 shares in the stock within the past three months. The total insider sales reported to the SEC in that time frame amounted to 150,002 shares. In total, individual insiders traded 431,474 shares in the business, which makes up 2.274% of 18,975,685 shares that were traded over a year. In the past 12 months, insiders have purchased 1,581,873 shares while the seller parted with 17,393,812 shares.

CTL‘s last price was down -14.91% as compared to the average trading price of 50 days recorded at $13.66 while enlarging the period to 200 trading days, the average closing price was $11.32. At present, there are 1.08 billion in the total number of common shares owned by the public and among those 1.08 billion shares have been available to trade. The percentage of shares being held by the company management was 0.6% while institutions stake was 77.1%. The company has generated negative returns on equity over the last 12 months (-8.8%). It managed to keep its gross profit margin at 54.9% over the past 12 months.

When assessing the full upside of the CTL stock, there is another set of technicals that should be looked into and considered. Its 0.91% gain from moving average of $11.52 has brought about a positive sentiment when calculated over the last 20 days. The market has allocated a beta of 0.87 to the stock. With the beta been less than one, this implies that the company shares are theoretically less volatile than the market, something that the traders definitely are keeping an eye on.

Most of the analysts surveyed by Thomson/First Call think quite highly of CenturyLink, Inc. — 3 analysts rate the stock as a buy with another 0 rating it strong buy. There are 8 analysts who maintain a hold rating for the stock, with 3 giving it a sell rating. Analysts arrived at a 12-month price target of $15.8733 on shares of CenturyLink, Inc. (NYSE:CTL), which corresponds to 36.25% upside potential than its current market price of $11.62 and implies potential despite the recent advance in the price. However, their current target price has fallen from $16.5754 a month ago and is down handily from the consensus target of $16.96 a quarter ago.

In the last five years, the EPS of the company has been roughly -31.1%. Though the percentage looks disappointing, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 8.7%. The revenue of the company has risen at an average annualized rate of about 5.3 over the last five years. The company recently recorded a drop of -5%, but this figure is rather unattractive.

Let’s briefly check the hedge fund interest towards CTL stock. Beck Mack & Oliver LLC added position in the company after it grew 15.3% or 6,868,379 shares of its common stock. The hedge fund now owns 7,919,241 shares worth $92,021,580, SEC documents show. MML Investors Services LLC cut assets in the stock as 50585.53 shares have been sold, reducing its stake by -8.8% to 46,134 shares which are currently valued at $536,077. In addition, Toronto Dominion Bank recently reported that it now owns 874,739 shares making a total of $10,164,467 based on the recent price. This refelects a change of 14.7% in their ownership.