Philadelphia-based Penn Capital Management acquired 2.7 million shares of Lumen Technologies for an estimated $16.8 million in the third quarter.
The position represents 1.3% of 13F reportable assets under management at quarter-end.
Though a large purchase, the new stake places Lumen Technologies outside the fund’s top five holdings.
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Philadelphia-based Penn Capital Management Company disclosed a new position in Lumen Technologies (NYSE:LUMN) on Monday, acquiring over 2.7 million shares valued at approximately $16.8 million during the third quarter.
According to a filing submitted to the Securities and Exchange Commission on Monday, Penn Capital Management Company disclosed a new position in Lumen Technologies. The fund acquired 2,744,057 shares during the third quarter, bringing its total holdings in the telecommunications company to approximately $16.8 million at quarter-end.
Top holdings after the filing:
NYSE:DY: $25.2 million (1.9% of AUM)
NYSE:AMTM: $23.1 million (1.8% of AUM)
NASDAQ:ATEC: $22.8 million (1.8% of AUM)
NASDAQ:MIRM: $22.6 million (1.7% of AUM)
NASDAQ:WFRD: $22.3 million (1.7% of AUM)
As of November 21, 2025, shares of Lumen Technologies were priced at $8.09, up 6% over the past year and trailing the S&P 500, which is up 13% in the same period.
Metric | Value |
|---|---|
Revenue (TTM) | $12.7 billion |
Net income (TTM) | ($1.7 billion) |
Price (as of market close Wednesday) | $8.09 |
One-year price change | (5.75%) |
Lumen Technologies operates as a facilities-based communications and technology provider, delivering digital infrastructure and network services. It offers integrated technology and communications services, including cloud, fiber infrastructure, data networking, unified communications, managed security, and traditional voice solutions.
The company leverages its fiber network and technology platforms to support business and residential clients seeking scalable connectivity and IT solutions, with a focus on broadband subscribers and organizations requiring advanced connectivity and IT services. Lumen generates revenue by providing enterprise and mass-market customers with recurring service contracts and infrastructure-based solutions, leveraging its extensive fiber network and technology platforms.
For long-term investors, Penn Capital’s new position in Lumen is notable because it aligns with the firm’s strategy of targeting deeply discounted companies that are restructuring toward a healthier balance sheet. Lumen’s turnaround has been uneven, but the latest quarter showed flashes of real operational progress: Revenue and adjusted EBITDA both beat expectations, free cash flow excluding special items climbed to $1.7 billion (from $1.2 billion a year earlier), and the company closed major debt refinancing steps that helped cut annual interest expense by $135 million. The challenge is that the headline GAAP numbers still look rough—Q3 net loss widened to $621 million from $148 million one year earlier as revenue (though above expectations) slipped from $3.2 billion to $3.1 billion.
Penn’s position—about 0.5% of reported assets—sits well below its largest holdings, but the fund typically traffics in micro- and small-cap names where it sees upside. Lumen, meanwhile, is a company in transition with a long-depressed valuation, and the scale of this bet suggests that Penn views the company’s transformation as a catalyst that could support some upside. Shares have risen 6% over the past year but continue to lag the broader market.
