Michael Burry Is Selling These 5 Stocks

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

Number of Hedge Fund Holders: 33 

Lumen Technologies, Inc. (NYSE: LUMN) is a Louisiana-based technology and communications firm. It is placed third on our list of 15 stocks Michael Burry is selling. According to the latest data, Scion Asset Management first bought a stake in the company during the third quarter of 2020. It sold off the stake entirely during the second quarter of 2021. The fund paid an estimated average price of $9.99 per share for the holding. At the end of June, the shares of the firm were trading at $13.59. 

On July 13, investment advisory Wells Fargo reiterated an Overweight rating on Lumen Technologies, Inc. (NYSE: LUMN) stock with a price target of $15, underlining that the company was unlikely to sell the entire mass market business after acquisition rumours. 

At the end of the second quarter of 2021, 33 hedge funds in the database of Insider Monkey held stakes worth $1.05 billion in Lumen Technologies, Inc. (NYSE: LUMN), up from 32 in the preceding quarter worth $1 billion. 

In its Q1 2021 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 (40%, 3.33%), the global fiber company, was the top contributor. While COVID fallout still weighed on fourth quarter results, the company benefitted from positive business mix improvements. Early in the quarter, Lumen appreciated 38% in a few short days amidst the “Game Stop / Reddit” short cover phenomenon. After this shortterm bounce, Lumen’s stock price appreciated more steadily over the last six weeks of the quarter with improved results. Many of last year’s worst-case fears have not materialized and the outlook is improving for the core business. We continue to believe that the company has multiple ways within its control to both grow and realize value per share, and we have a 13D filed to allow us to discuss these options with the company. Lumen’s board, which includes Southeastern-nominated Chairman Mike Glenn from FedEx and Director Hal Jones from Graham Holdings, is doing good work to realize Lumen’s hidden value and return the business to FCF/share growth. Despite its appreciation, the stock trades at less than half of our appraisal.”