Is Lumen Technologies Stock a Buy or Sell After Westerly Capital Dumped 2.7 Million Shares Worth $22.2 Million?
Key Points
Westerly Capital Management sold 2,700,000 Lumen Technologies shares; estimated trade size $22.22 million (based on quarterly average pricing).
The quarter-end Lumen position value decreased by $15.20 million, reflecting share sales and stock price movement.
The transaction equaled 4.88% of fund’s reportable 13F assets under management.
Post-sale, the fund holds 800,000 shares valued at $6.22 million.
The Lumen stake is now 1.37% of AUM, which places it outside the fund’s top five holdings.
- 10 stocks we like better than Lumen Technologies ›
What happened
According to an SEC filing dated February 17, 2026, Westerly Capital Management reduced its Lumen Technologies (NYSE:LUMN) holding by 2,700,000 shares during the quarter. The estimated transaction value, calculated using the average closing price for the quarter, was $22.22 million. At quarter-end, the position’s value had fallen by $15.20 million, due to both the share sale and changes in Lumen’s stock price.
What else to know
Following the sale, Lumen represents 1.37% of the fund’s reportable 13F assets under management.
Top holdings after the filing:
- NASDAQ: UDMY: $23.40 million (5.1% of AUM)
- NASDAQ: VIAV: $20.49 million (4.5% of AUM)
- NASDAQ: AIP: $20.07 million (4.4% of AUM)
- NASDAQ: HDSN: $17.47 million (3.8% of AUM)
- NASDAQ: MRVL: $17.00 million (3.7% of AUM)
As of February 17, 2026, shares were priced at $8.09, up 64.1% over the past year, outperforming the S&P 500 by 63.95 percentage points.
Company/ETF overview
| Metric | Value |
|---|---|
| Price (as of market close 2026-02-17) | $8.09 |
| Market Capitalization | $6.97 billion |
| Revenue (TTM) | $12.40 billion |
| Net Income (TTM) | ($1.74 billion) |
Company/ETF snapshot
- Lumen Technologies provides integrated communications and technology solutions, including fiber infrastructure, cloud services, managed security, and broadband internet under the Lumen, Quantum Fiber, and CenturyLink brands.
- It operates a facilities-based business model, generating revenue primarily from network services, data connectivity, and IT solutions for enterprise, government, and residential customers.
- The company targets large businesses, government agencies, and residential broadband subscribers in the United States and internationally.
Lumen Technologies, Inc. is a leading provider of telecommunications and technology services, serving millions of broadband subscribers and enterprise clients. The company leverages its extensive fiber network and portfolio of advanced IT solutions to address the evolving connectivity and security needs of its customers.
Lumen's scale, diversified service offerings, and established infrastructure position it as a key player in the communications services sector.
What this transaction means for investors
Westerly Capital Management’s sale of Lumen Technologies stock in the fourth quarter of 2025 is noteworthy because the fund sold a significant portion of its holdings. Lumen was Westerly’s third largest position in the third quarter, representing 6.7% of AUM.
After the sale of 2.7 million shares, Lumen dropped to 1.4% of AUM. This suggests Westerly may have become dubious of the telecommunications company’s change in direction.
Lumen decided to shift away from consumer internet services, selling this part of its business in February. It now focuses on providing fiber optic solutions to businesses in support of the high bandwidth needs of artificial intelligence.
However, this new direction requires the company to upgrade its existing fiber optic network, which contributed to an increase in capital expenditures in 2025 to $4.4 billion, up from 2024's $3.2 billion. It also exited 2025 with over $17 billion in debt on its balance sheet.
Meanwhile, its 2025 revenue of $12.4 billion was down from $13.1 billion in 2024. This combination of rising expenses and falling sales does not bode well for Lumen’s future. Consequently, now is not a good time to buy shares, nor is it an ideal moment to sell with the stock down 12% year to date through March 10. Instead, watch the company’s performance over the next few quarters before making an investment decision.
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Robert Izquierdo has positions in Marvell Technology. The Motley Fool has positions in and recommends Marvell Technology and Viavi Solutions. The Motley Fool has a disclosure policy.
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