CEO Kathleen Johnson Buys 78,685 Lumen Shares, Betting on Turnaround Amid 30% Stock Decline

Insider Buying Amid a Slipping Stock

On February 5 , 2026, Lumen Technologies’ President & CEO Kathleen Johnson purchased 78,685 shares of the company’s common stock at an average price of $6.35—just a touch below the current market level of $6.63. The acquisition raises eyebrows because it comes after a month of mixed insider activity, including a sizable sell‑off by EVP Ashley Haynes‑Gaspar and a large buy by EVP James Fowler. Johnson’s stake now stands at 8.56 million shares, or roughly 13 % of the outstanding shares, underscoring her long‑term commitment to the business.

What the Buying Signals

A CEO‑level purchase can be interpreted as a vote of confidence, especially when the price paid is near the market level. In a company whose quarterly revenue has declined and whose P/E ratio sits at a negative five, the move suggests that Johnson believes the firm is undervalued relative to its growth prospects. Her purchase follows a period of cost‑cutting and debt reduction initiatives highlighted in the most recent earnings release, implying she anticipates the turnaround to materialize in 2026. Moreover, the transaction’s timing—just days after the release of Lumen’s fourth‑quarter results—hints that she may be positioning herself for the expected upside in EBITDA once the company’s restructuring pays off.

Investor Takeaway

For investors, Johnson’s buy is a positive signal that may help steady the stock after a recent 30 % weekly decline. The market has already absorbed a large sell‑off by Haynes‑Gaspar, which reduced the share count by 30,603 and tightened the ownership concentration among executives. Johnson’s action restores some balance and could alleviate concerns about liquidity and insider dilution. However, the broader context—negative earnings, a weak price‑earnings ratio, and a high market cap relative to revenue—remains a cautionary backdrop. Analysts will be watching for further insider activity and the company’s ability to translate its cost‑saving measures into tangible revenue growth.

Looking Ahead

Lumen’s strategic pivot toward digital services and the appointment of a new Chief Revenue Officer signal a shift toward higher‑margin offerings. If the company can accelerate the adoption of its cloud and network‑security solutions, the stock could rebound. Johnson’s purchase, combined with the buzz and sentiment metrics (a +59 score and 113 % communication intensity), indicates a cautiously optimistic tone among market observers. Investors should monitor both insider transactions and the company’s quarterly updates to gauge whether the CEO’s confidence translates into share‑price appreciation.