Key Points
- CFO insider sale: Thaddeus Gerard Weed sold 4,850 Cogent Communications shares for approximately $45,445, reducing his position by 2.45% to 193,050 shares.
- Weak stock performance and mixed results: CCOI opened at $9.98, near its 52-week low of $8.88, while quarterly EPS beat estimates but revenue fell 4.4% year over year. Analysts maintain an average “Hold” rating with a $19.55 price target.
- Legal risks weigh on sentiment: Several law firms publicized securities-fraud litigation alleging misleading disclosures about demand, backlog conversion, margins, dividends and pledged shares; the allegations remain unproven.
Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Get Free Report) CFO Thaddeus Weed sold 4,850 shares of Cogent Communications stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $9.37, for a total transaction of $45,444.50. Following the completion of the sale, the chief financial officer owned 193,050 shares of the company's stock, valued at approximately $1,808,878.50. This trade represents a 2.45% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink.
Thaddeus Gerard Weed also recently made the following trade(s):
- On Tuesday, June 16th, Thaddeus Weed sold 4,850 shares of Cogent Communications stock. The stock was sold at an average price of $16.79, for a total transaction of $81,431.50.
Cogent Communications Stock Performance
Shares of Cogent Communications stock opened at $9.98 on Friday. Cogent Communications Holdings, Inc. has a 1 year low of $8.88 and a 1 year high of $45.69. The firm's 50-day simple moving average is $11.62 and its 200-day simple moving average is $16.59. The firm has a market cap of $511.18 million, a PE ratio of -10.40 and a beta of 0.77.
Cogent Communications (NASDAQ:CCOI - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The technology company reported $1.38 EPS for the quarter, topping analysts' consensus estimates of ($1.00) by $2.38. The business had revenue of $235.56 million during the quarter, compared to the consensus estimate of $239.55 million. Cogent Communications had a negative return on equity of 842.48% and a negative net margin of 4.73%.The company's revenue for the quarter was down 4.4% compared to the same quarter last year. During the same period last year, the firm earned ($1.21) earnings per share. On average, equities analysts predict that Cogent Communications Holdings, Inc. will post -3.01 earnings per share for the current year.
Cogent Communications Announces Dividend
The company also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Stockholders of record on Friday, August 21st will be given a $0.02 dividend. The ex-dividend date is Friday, August 21st. This represents a $0.08 annualized dividend and a dividend yield of 0.8%. Cogent Communications's dividend payout ratio (DPR) is presently -8.33%.
Key Stories Impacting Cogent Communications
Here are the key news stories impacting Cogent Communications this week:
- Positive Sentiment: Potential investor recovery: Multiple law firms said investors who purchased CCOI shares between February 29, 2024, and May 1, 2026, may seek appointment as lead plaintiff in the securities class action by September 21, 2026. Any recovery would depend on the outcome of the litigation. Robbins Geller CCOI class action notice
- Neutral Sentiment: Some favorable stock screening: Zacks included Cogent among five stocks with rising price-to-earnings ratios, presenting CCOI as a speculative idea for investors seeking improving valuation momentum. The item does not identify a specific operating catalyst or earnings upgrade. Zacks rising P/E stocks
- Negative Sentiment: Broad securities-fraud litigation campaign: Several firms publicized an already-filed class action alleging Cogent and certain executives made misleading disclosures about optical-wavelength demand and backlog conversion, as well as margin-loan, dividend and pledged-share foreclosure risks. The allegations include claims that backlog was unlikely to convert into paying revenue and contributed to an approximately 29% stock decline. The case creates potential legal costs, reputational damage and uncertainty around Cogent’s disclosures; the allegations have not been proven. Hagens Berman Cogent securities fraud notice
- Negative Sentiment: CFO insider sale: CFO Thaddeus Gerard Weed sold 4,850 shares for approximately $45,445, reducing his position by 2.45%. Although relatively small compared with his remaining holdings, the sale may weigh on sentiment amid the litigation headlines. Cogent CFO SEC Form 4 filing
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently bought and sold shares of the company. AQR Capital Management LLC acquired a new position in shares of Cogent Communications during the first quarter worth approximately $202,000. Goldman Sachs Group Inc. increased its position in Cogent Communications by 26.9% in the 1st quarter. Goldman Sachs Group Inc. now owns 476,513 shares of the technology company's stock valued at $29,215,000 after acquiring an additional 100,969 shares during the period. Empowered Funds LLC increased its position in Cogent Communications by 10.3% in the 1st quarter. Empowered Funds LLC now owns 5,466 shares of the technology company's stock valued at $335,000 after acquiring an additional 510 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Cogent Communications by 23.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 161,791 shares of the technology company's stock valued at $9,919,000 after acquiring an additional 30,630 shares in the last quarter. Finally, Strs Ohio acquired a new position in Cogent Communications during the 1st quarter worth $104,000. Institutional investors own 92.45% of the company's stock.
Wall Street Analysts Forecast Growth
CCOI has been the topic of several research analyst reports. Royal Bank Of Canada reduced their price objective on Cogent Communications from $18.00 to $12.00 and set a "sector perform" rating on the stock in a research note on Thursday, August 13th. Wells Fargo & Company lowered their target price on shares of Cogent Communications from $18.00 to $14.00 and set an "equal weight" rating for the company in a research note on Friday, August 7th. Wall Street Zen raised shares of Cogent Communications from a "sell" rating to a "hold" rating in a report on Saturday, August 15th. TD Cowen reduced their price target on shares of Cogent Communications from $34.00 to $30.00 and set a "buy" rating on the stock in a research report on Friday, August 7th. Finally, KeyCorp decreased their price target on shares of Cogent Communications from $25.00 to $15.00 and set an "overweight" rating for the company in a report on Friday, August 7th. Three equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $19.55.
Get Our Latest Research Report on Cogent Communications
Cogent Communications Company Profile
(
Get Free Report)
Cogent Communications (NASDAQ:CCOI) is a multinational Internet service provider specializing in high-speed Internet access and data transport services. The company operates one of the largest Tier 1 IP networks in the world, offering wholesale and enterprise customers reliable, low-latency connectivity. Cogent's core services include dedicated Internet access, Ethernet transport, wavelength services, and MPLS-based IP Virtual Private Networks, all delivered over its privately owned, fiber-optic backbone.
In addition to network connectivity, Cogent provides data center colocation and managed services designed to support businesses with demanding bandwidth and redundancy requirements.
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