Why This Private Equity-Style Fund Just Bet $17 Million on Lumen Technologies Stock

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Philadelphia-based Penn Capital Management acquired 2.7 cardinal shares of Lumen Technologies for an estimated $16.8 cardinal successful the 3rd quarter.
The presumption represents 1.3% of 13F reportable assets nether absorption astatine quarter-end.
Though a ample purchase, the caller involvement places Lumen Technologies extracurricular the fund's apical 5 holdings.
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Philadelphia-based Penn Capital Management Company disclosed a caller presumption successful Lumen Technologies (NYSE:LUMN) connected Monday, acquiring implicit 2.7 cardinal shares valued astatine astir $16.8 cardinal during the 3rd quarter.

According to a filing submitted to the Securities and Exchange Commission connected Monday, Penn Capital Management Company disclosed a caller presumption successful Lumen Technologies. The money acquired 2,744,057 shares during the 3rd quarter, bringing its full holdings successful the telecommunications institution to astir $16.8 cardinal astatine quarter-end.

Top holdings aft the filing:

NYSE:DY: $25.2 cardinal (1.9% of AUM)
NYSE:AMTM: $23.1 cardinal (1.8% of AUM)
NASDAQ:ATEC: $22.8 cardinal (1.8% of AUM)
NASDAQ:MIRM: $22.6 cardinal (1.7% of AUM)
NASDAQ:WFRD: $22.3 cardinal (1.7% of AUM)

As of November 21, 2025, shares of Lumen Technologies were priced astatine $8.09, up 6% implicit the past twelvemonth and trailing the S&P 500, which is up 13% successful the aforesaid period.

Metric

Value

Revenue (TTM)	$12.7 billion
Net income (TTM)	($1.7 billion)
Price (as of marketplace adjacent Wednesday)	$8.09
One-year terms change	(5.75%)

Lumen Technologies operates arsenic a facilities-based communications and exertion provider, delivering integer infrastructure and web services. It offers integrated exertion and communications services, including cloud, fibre infrastructure, information networking, unified communications, managed security, and accepted dependable solutions.

The institution leverages its fibre web and exertion platforms to enactment concern and residential clients seeking scalable connectivity and IT solutions, with a absorption connected broadband subscribers and organizations requiring precocious connectivity and IT services. Lumen generates gross by providing endeavor and mass-market customers with recurring work contracts and infrastructure-based solutions, leveraging its extended fibre web and exertion platforms.

For semipermanent investors, Penn Capital’s caller presumption successful Lumen is notable due to the fact that it aligns with the firm’s strategy of targeting profoundly discounted companies that are restructuring toward a healthier equilibrium sheet. Lumen’s turnaround has been uneven, but the latest 4th showed flashes of existent operational progress: Revenue and adjusted EBITDA some bushed expectations, escaped currency travel excluding peculiar items climbed to $1.7 cardinal (from $1.2 cardinal a twelvemonth earlier), and the institution closed large indebtedness refinancing steps that helped chopped yearly involvement disbursal by $135 million. The situation is that the header GAAP numbers inactive look rough—Q3 nett nonaccomplishment widened to $621 cardinal from $148 cardinal 1 twelvemonth earlier arsenic gross (though supra expectations) slipped from $3.2 cardinal to $3.1 billion.

Penn’s position—about 0.5% of reported assets—sits good beneath its largest holdings, but the money typically traffics successful micro- and small-cap names wherever it sees upside. Lumen, meanwhile, is simply a institution successful modulation with a long-depressed valuation, and the standard of this stake suggests that Penn views the company’s translation arsenic a catalyst that could enactment immoderate upside. Shares person risen 6% implicit the past twelvemonth but proceed to lag the broader market.

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