Why Is Lumen (LUMN) Stock Up Today? CEO Buys $500K in Shares

Lumen Technologies (LUMN) stock experienced a dramatic 29% surge on February 6, 2026, following a significant insider purchase by CEO Kathleen Johnson. The rally came just one day after the stock had plunged 21% in response to the company’s fourth-quarter earnings report. Johnson’s $500,000 stock purchase at $6.35 per share sent a powerful signal to investors about management’s confidence in the company’s transformation strategy, particularly its pivot toward AI infrastructure services.

CEO’s Strategic Stock Purchase Details

On February 5, 2026, CEO Kathleen Johnson acquired 78,685 shares of Lumen Technologies at an average price of $6.35 per share, totaling approximately $500,000. The timing of this purchase was particularly notable, coming immediately after the stock had crashed 21% from $8.46 to $6.63 following the company’s announcement of a $2 million fourth-quarter net loss.

However, the market reaction overlooked a crucial detail: Lumen actually exceeded analyst expectations with an operating profit of 23 cents per share, significantly better than Wall Street’s forecast of a 26-cent loss.

Johnson’s purchase wasn’t her first show of confidence in the company. A company spokesman confirmed that the CEO has made previous open-market purchases of Lumen stock, demonstrating consistent faith in the company’s turnaround strategy.

Following this latest acquisition, Johnson now holds nearly 12 million shares worth approximately $96 million at current prices, held both directly and through a spousal trust. The new shares alone gained $133,000 in value within days of the purchase.

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Market Response and Current Stock Performance

The market’s reaction to Johnson’s insider buying was swift and decisive. Shares rocketed 29% to $8.06 on February 6, the day the purchase was publicly disclosed. As of February 11, 2026, at 10:45 AM EST, LUMN stock is trading at $8.02, up $0.24 (+3.15%) from the previous close of $7.78.

The stock has shown impressive momentum with a day’s range of $7.81 to $8.26 and a 52-week range of $3.01 to $11.95.

The company’s transformation strategy focuses on becoming essential AI infrastructure for tech giants, having secured over $13 billion in contracts with hyperscalers like Microsoft and Meta Platforms. However, Lumen faces significant challenges with more than $17 billion in long-term debt.

The stock currently trades at just 0.67 times sales and has earned a Zacks Rank #1 Strong Buy rating with an “A” Momentum Score. With a beta of 1.51, the stock tends to move more aggressively than the broader market, and recent performance shows a year-to-date return of 5.41% and an impressive one-year return of 69.57%.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.