Cogent Communications (NASDAQ:CCOI) Downgraded by Wall Street Zen to Sell

Key Points

• Wall Street Zen downgraded Cogent Communications from “hold” to “sell.” Other analysts have also cut ratings or price targets, though the overall consensus remains “hold.”
• Cogent reported a third-quarter loss of $0.62 per share, narrower than analysts expected. Revenue missed estimates at $231.2 million and declined 4.4% year over year.
• On-net revenue, including wavelengths, increased 2.4% sequentially to $153.9 million and rose 5.8% year over year.

Cogent Communications (NASDAQ:CCOI - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday, Wall Street Zen reports.

A number of other equities research analysts have also weighed in on the stock. JPMorgan Chase & Co. lowered shares of Cogent Communications from a "neutral" rating to an "underweight" rating and cut their target price for the company from $22.00 to $9.00 in a research note on Wednesday, August 19th. Royal Bank Of Canada cut their target price 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. UBS Group set a $9.00 target price on Cogent Communications in a research report on Wednesday, August 19th. KeyCorp downgraded Cogent Communications from an "overweight" rating to a "sector weight" rating in a research note on Friday. Finally, Citigroup lowered their target price on Cogent Communications from $20.00 to $11.50 and set a "neutral" rating on the stock in a report on Thursday, August 13th. Two equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $18.94.

Cogent Communications Stock Performance

NASDAQ CCOI opened at $3.98 on Friday. The stock has a market cap of $203.86 million, a PE ratio of -5.61 and a beta of 0.80. The firm has a 50-day moving average of $8.24 and a 200-day moving average of $15.36. Cogent Communications has a 52-week low of $3.56 and a 52-week high of $28.70.

Cogent Communications (NASDAQ:CCOI - Get Free Report) last posted its earnings results on Thursday, November 5th. The technology company reported ($0.62) earnings per share for the quarter, topping analysts' consensus estimates of ($0.77) by $0.15. The company had revenue of $231.20 million for the quarter, compared to the consensus estimate of $234.57 million. During the same period in the previous year, the firm posted ($0.87) EPS. The business's quarterly revenue was down 4.4% compared to the same quarter last year. As a group, analysts predict that Cogent Communications will post -3.13 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Thaddeus Weed sold 4,850 shares of the firm's stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $9.37, for a total value of $45,444.50. Following the completion of the transaction, the chief financial officer owned 193,050 shares in the company, valued at $1,808,878.50. This trade represents a 2.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 4.20% of the company's stock.

Institutional Trading of Cogent Communications

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CCOI. FourWorld Capital Management LLC purchased a new stake in Cogent Communications in the 1st quarter valued at about $5,002,000. Granahan Investment Management LLC boosted its position in Cogent Communications by 46.3% in the 1st quarter. Granahan Investment Management LLC now owns 317,447 shares of the technology company's stock valued at $5,981,000 after buying an additional 100,422 shares during the last quarter. Squarepoint Ops LLC grew its stake in Cogent Communications by 341.1% during the 2nd quarter. Squarepoint Ops LLC now owns 226,035 shares of the technology company's stock valued at $3,137,000 after purchasing an additional 174,787 shares in the last quarter. Walleye Capital LLC increased its position in shares of Cogent Communications by 145.4% in the 1st quarter. Walleye Capital LLC now owns 239,557 shares of the technology company's stock worth $4,513,000 after purchasing an additional 141,949 shares during the last quarter. Finally, Bank of New York Mellon Corp bought a new position in Cogent Communications during the 2nd quarter worth approximately $3,685,000. Hedge funds and other institutional investors own 92.45% of the company's stock.

Trending Headlines about Cogent Communications

Here are the key news stories impacting Cogent Communications this week:

• Positive Sentiment: Cogent reported a Q3 loss of $0.62 per share, narrower than analysts’ roughly $0.77-per-share estimate and the $0.87 loss a year earlier. On-net revenue, including wavelengths, rose 2.4% sequentially to $153.9 million and was up 5.8% year over year. Cogent Communications Reports Third Quarter 2026 Results
• Negative Sentiment: UBS lowered its price target to $6 from $11 while maintaining a Neutral rating, and KeyBanc also downgraded the shares. The analyst actions are weighing on investor sentiment. UBS Adjusts Price Target Cogent Communications Shares Fall After KeyBanc Downgrade
• Negative Sentiment: Q3 revenue of $231.2 million fell short of expectations of about $234.6 million, declined 4.4% year over year, and was below the prior quarter’s $235.6 million in service revenue. The sales shortfall and ongoing revenue contraction appear to outweigh the narrower-than-expected loss. Cogent misses Q3 2026 sales expectations

About Cogent Communications

Cogent Communications Holdings, Inc NASDAQ: CCOI is a telecommunications company that provides high-speed Internet connectivity and data transport services to businesses, telecommunications carriers, content providers, government agencies and educational institutions. The company operates a global, facilities-based fiber-optic network and is recognized as a Tier 1 Internet service provider.

Cogent's offerings include dedicated Internet access, IP transit, Ethernet and other private network connectivity services.

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