Key Points
- Director sale: Cogent director Lewis Ferguson sold 4,000 shares on Dec. 2 at an average price of $20.34 for $81,360, trimming his stake by 17.19% to 19,267 shares, according to the SEC filing.
- Weak results and analyst downgrades: The company posted -$0.87 EPS (above estimates) with revenue down 5.9%, negative net margin and ROE, and several major banks have cut price targets, leaving a MarketBeat consensus rating of "Hold" (average target $25.71).
- Capital moves and dividend cut: The board authorized a $100 million share buyback (about 4.6% of shares) while the quarterly dividend was trimmed to $0.02 per share, signaling mixed priorities on returning capital.
Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Get Free Report) Director Lewis Ferguson sold 4,000 shares of Cogent Communications stock in a transaction dated Tuesday, December 2nd. The shares were sold at an average price of $20.34, for a total value of $81,360.00. Following the completion of the transaction, the director owned 19,267 shares in the company, valued at $391,890.78. This trade represents a 17.19% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link.
Cogent Communications Stock Up 2.7%
NASDAQ:CCOI opened at $19.99 on Wednesday. The company's 50-day simple moving average is $33.31 and its 200-day simple moving average is $40.19. The company has a debt-to-equity ratio of 49.06, a quick ratio of 2.02 and a current ratio of 2.02. Cogent Communications Holdings, Inc. has a fifty-two week low of $15.96 and a fifty-two week high of $84.06. The stock has a market capitalization of $981.91 million, a P/E ratio of -4.90 and a beta of 0.83.
Cogent Communications (NASDAQ:CCOI - Get Free Report) last posted its earnings results on Thursday, November 6th. The technology company reported ($0.87) EPS for the quarter, beating analysts' consensus estimates of ($1.15) by $0.28. Cogent Communications had a negative net margin of 19.72% and a negative return on equity of 208.70%. The company had revenue of $241.95 million during the quarter, compared to analysts' expectations of $246.13 million. During the same quarter in the prior year, the company posted ($1.33) earnings per share. Cogent Communications's revenue for the quarter was down 5.9% compared to the same quarter last year. On average, equities analysts anticipate that Cogent Communications Holdings, Inc. will post -4.55 earnings per share for the current fiscal year.
Cogent Communications announced that its board has authorized a share buyback program on Thursday, August 7th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the technology company to buy up to 4.6% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board of directors believes its shares are undervalued.
Cogent Communications Cuts Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Monday, December 8th. Stockholders of record on Friday, November 21st will be issued a dividend of $0.02 per share. This represents a $0.08 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Friday, November 21st. Cogent Communications's dividend payout ratio is currently -1.96%.
Analyst Ratings Changes
A number of equities research analysts have commented on CCOI shares. JPMorgan Chase & Co. decreased their price target on Cogent Communications from $37.00 to $23.00 and set a "neutral" rating for the company in a research note on Thursday, November 13th. Citigroup decreased their price objective on shares of Cogent Communications from $33.00 to $25.00 and set a "neutral" rating for the company in a research report on Tuesday, November 11th. Wells Fargo & Company reissued an "equal weight" rating and set a $27.00 target price (down previously from $45.00) on shares of Cogent Communications in a research report on Friday, November 7th. Zacks Research upgraded shares of Cogent Communications from a "strong sell" rating to a "hold" rating in a research note on Wednesday, November 12th. Finally, UBS Group reiterated a "neutral" rating and set a $27.00 price objective (down from $50.00) on shares of Cogent Communications in a research note on Friday, November 7th. One analyst has rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Cogent Communications currently has a consensus rating of "Hold" and an average target price of $25.71.
View Our Latest Analysis on Cogent Communications
Hedge Funds Weigh In On Cogent Communications
Hedge funds and other institutional investors have recently bought and sold shares of the business. Yousif Capital Management LLC lifted its stake in Cogent Communications by 1.4% during the 2nd quarter. Yousif Capital Management LLC now owns 15,815 shares of the technology company's stock valued at $762,000 after acquiring an additional 212 shares during the period. Envestnet Portfolio Solutions Inc. lifted its position in Cogent Communications by 3.6% during the third quarter. Envestnet Portfolio Solutions Inc. now owns 7,534 shares of the technology company's stock valued at $289,000 after purchasing an additional 262 shares during the period. Teacher Retirement System of Texas boosted its holdings in Cogent Communications by 4.6% in the second quarter. Teacher Retirement System of Texas now owns 7,122 shares of the technology company's stock valued at $343,000 after purchasing an additional 314 shares during the last quarter. Ipswich Investment Management Co. Inc. grew its position in Cogent Communications by 0.8% during the 3rd quarter. Ipswich Investment Management Co. Inc. now owns 44,259 shares of the technology company's stock worth $1,697,000 after purchasing an additional 369 shares during the period. Finally, Keybank National Association OH raised its stake in shares of Cogent Communications by 5.7% during the 3rd quarter. Keybank National Association OH now owns 6,835 shares of the technology company's stock valued at $262,000 after buying an additional 370 shares during the last quarter. Institutional investors and hedge funds own 92.45% of the company's stock.
About Cogent Communications
(
Get Free Report)
Cogent Communications Holdings, Inc, through its subsidiaries, provides high-speed Internet access, private network, and data center colocation space services in North America, Europe, Oceania, South America, and Africa. The company offers on-net Internet access and private network services to law firms, financial services firms, and advertising and marketing firms, as well as heath care providers, educational institutions and other professional services businesses, other Internet service providers, telephone companies, cable television companies, web hosting companies, media service providers, mobile phone operators, content delivery network companies, and commercial content and application service providers.
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