5 Best Affordable Stocks To Buy Under $5

3. Lumen Technologies, Inc. (NYSE:LUMN)

Number of Hedge Fund Holders: 24
Share Price as of September 19: $1.52

Lumen Technologies, Inc. (NYSE:LUMN) is a telecommunications company that offers a wide range of technology and communication services to consumers, businesses, and government agencies. The stock currently trades at $1.52 per share, as of September 19. It is among the best affordable stocks on our list.

As of the end of Q2 2023, 24 hedge funds in Insider Monkey’s database owned stakes in Lumen Technologies, Inc. (NYSE:LUMN), worth collectively $103.7 million.

Longleaf Partners mentioned Lumen Technologies, Inc. (NYSE:LUMN) in its Q2 2023 investor letter. Here is what the firm has to say:

“We exited second-time holding Alphabet and long-term position Lumen Technologies, Inc. (NYSE:LUMN) in the quarter. We sold our remaining position in Lumen, after reducing our position in the first quarter when it became clearer the new management team under CEO Kate Johnson would not pursue a strategic path to monetizing Lumen’s consumer business. At their first analyst day in early June, new management presented disappointingly weak financial targets and significant further spending without a clear path to revenue growth. Throughout our holding period, we saw bond market pricing holding up and supporting our case for the strength of Lumen’s balance sheet, but in the second quarter, this reversed with bond prices becoming overly distressed. We lowered our appraisal as our outlook for the company deteriorated, leading to a full exit in the quarter. Lumen represented a permanent capital loss for the Fund, a significant opportunity cost for the portfolio and a disappointing long-term mistake. Lumen has reinforced the importance of limiting overweight positions in the portfolio, being cautious of leverage and value declines, and fully re-underwriting a case – and being willing to move on – when the people and/or underlying facts change.”