Cogent Communications (NASDAQ:CCOI) Stock Price Target Cut by Citigroup

Key Points

• Citigroup cut its Cogent Communications price target from $11.50 to $5.20, while maintaining a neutral rating; the new target implies 16.99% upside from the prior close.
• Analyst sentiment is broadly neutral: MarketBeat reports a consensus Hold rating and an average price target of $18.24, though several firms have recently lowered targets or ratings.
• Cogent reported quarterly EPS of -$0.62, beating estimates of -$0.77, but revenue of $231.2 million fell short of forecasts and declined 4.4% year over year.

Cogent Communications (NASDAQ:CCOI - Get Free Report) had its price target decreased by equities research analysts at Citigroup from $11.50 to $5.20 in a note issued to investors on Monday, Benzinga reports. The firm currently has a "neutral" rating on the technology company's stock. Citigroup's target price would indicate a potential upside of 16.99% from the stock's previous close.

CCOI has been the subject of several other reports. Royal Bank Of Canada lowered their price objective on Cogent Communications from $18.00 to $12.00 and set a "sector perform" rating for the company in a research report on Thursday, August 13th. Wells Fargo & Company dropped their price objective on Cogent Communications from $18.00 to $14.00 and set an "equal weight" rating on the stock in a report on Friday, August 7th. UBS Group set a $9.00 target price on Cogent Communications in a research report on Wednesday, August 19th. KeyCorp cut Cogent Communications from an "overweight" rating to a "sector weight" rating in a research note on Friday. Finally, Wall Street Zen downgraded Cogent Communications from a "hold" rating to a "sell" rating in a report on Saturday. Two equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $18.24.

Cogent Communications Stock Performance

Shares of NASDAQ:CCOI traded up $0.47 during trading hours on Monday, reaching $4.45. The stock had a trading volume of 1,893,146 shares, compared to its average volume of 1,502,727. Cogent Communications has a 1 year low of $3.56 and a 1 year high of $28.70. The firm's 50 day moving average is $8.24 and its 200-day moving average is $15.36. The stock has a market capitalization of $227.66 million, a price-to-earnings ratio of -6.26 and a beta of 0.80.

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

Insiders Place Their Bets

In other Cogent Communications news, CFO Thaddeus Weed sold 4,850 shares of the company's stock in a transaction on Wednesday, September 2nd. The shares were 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 represents a 2.45% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 4.20% of the stock is currently owned by company insiders.

Institutional Trading of Cogent Communications

Hedge funds and other institutional investors have recently made changes to their positions in the company. FourWorld Capital Management LLC acquired a new stake in Cogent Communications during the 1st quarter worth $5,002,000. Granahan Investment Management LLC increased its stake in Cogent Communications by 46.3% in the first quarter. Granahan Investment Management LLC now owns 317,447 shares of the technology company's stock valued at $5,981,000 after purchasing an additional 100,422 shares during the period. Squarepoint Ops LLC increased its stake in Cogent Communications by 341.1% in the second 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 during the period. Walleye Capital LLC raised its holdings in shares of Cogent Communications by 145.4% in the first quarter. Walleye Capital LLC now owns 239,557 shares of the technology company's stock valued at $4,513,000 after buying an additional 141,949 shares during the last quarter. Finally, Bank of New York Mellon Corp purchased a new stake in shares of Cogent Communications in the second quarter valued at about $3,685,000. Institutional investors and hedge funds own 92.45% of the company's stock.

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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