Hedge Funds Continue to Load Up on These 5 Growth Stocks Despite Recession Fears

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

Number of Hedge Fund Holders in Q2 2022: 42 

Number of Hedge Fund Holders in Q1 2022: 30   

Lumen Technologies, Inc. (NYSE:LUMN) operates as a technology and communications firm. The firm is one of the few growth stocks on the market with a reliable dividend history. For the last twenty-two years, the company has consistently paid a dividend to shareholders. The sector median in this regard is just seven years. On August 18, the company declared a quarterly dividend of $0.25 per share, in line with previous. The forward yield was 9.06%. The dividend is payable to shareholders by early September. 

On August 5, JPMorgan analyst Philip Cusick reinstated coverage of Lumen Technologies, Inc. (NYSE:LUMN) stock with an Underweight rating and a price target of $10, noting the business of the firm would remain fundamentally challenged in the near term. 

At the end of the second quarter of 2022, 42 hedge funds in the database of Insider Monkey held stakes worth $1 billion in Lumen Technologies, Inc. (NYSE:LUMN), compared to 30 in the preceding quarter worth $904 million. 

In its Q1 2022 investor letter, Longleaf Partners Fund, an asset management firm, highlighted a few stocks and Lumen Technologies, Inc. (NYSE:LUMN) was one of them. Here is what the fund said:

“Lumen – Lumen Technologies, Inc. (NYSE:LUMN) reported weak organic revenue growth and guided more weakness for 2022. We expect revenue growth to kick back in towards the end of 2022, and the huge FCF coupon helped offset value decline from the weaker guidance. The other factor weighing on the stock price was largest shareholder Temasek’s partial sale of its 10% position in the quarter, creating uncertainty and a share price overhang. We have a 13D filed and continue to urge the company to take steps to address the significant price-to-value gap, including continued share buybacks.”