Citigroup Cuts Cogent Communications (NASDAQ:CCOI) Price Target to $20.00

Key Points

• Citigroup lowered its price target on Cogent Communications to $20 from $22 while keeping a neutral rating, implying about 14% upside from the prior close.
• Wall Street sentiment remains cautious: several analysts recently cut their targets as well, and the stock’s overall consensus rating is “Hold” with an average target price of $24.90.
• Cogent’s latest earnings beat EPS estimates but revenue came in slightly below expectations and fell 3.2% year over year, underscoring ongoing profitability pressure.

Cogent Communications (NASDAQ:CCOI - Get Free Report) had its target price decreased by analysts at Citigroup from $22.00 to $20.00 in a research report issued on Tuesday,Benzinga reports. The brokerage currently has a "neutral" rating on the technology company's stock. Citigroup's target price would indicate a potential upside of 13.95% from the stock's previous close.

Several other equities analysts also recently issued reports on the company. Royal Bank Of Canada reduced their price objective on Cogent Communications from $22.00 to $18.00 and set a "sector perform" rating for the company in a research report on Wednesday, May 6th. Williams Trading set a $40.00 price target on Cogent Communications in a report on Monday, February 23rd. UBS Group lowered their price target on Cogent Communications from $21.00 to $17.00 and set a "neutral" rating on the stock in a report on Tuesday, May 5th. Oppenheimer lowered their price target on Cogent Communications from $40.00 to $30.00 and set an "outperform" rating on the stock in a report on Monday, February 23rd. Finally, KeyCorp lowered their price target on Cogent Communications from $30.00 to $25.00 and set an "overweight" rating on the stock in a report on Monday, February 23rd. Three investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Cogent Communications has an average rating of "Hold" and a consensus target price of $24.90.

Cogent Communications Stock Up 1.9%

NASDAQ CCOI traded up $0.33 during trading hours on Tuesday, hitting $17.55. The company had a trading volume of 169,666 shares, compared to its average volume of 1,199,511. Cogent Communications has a fifty-two week low of $14.82 and a fifty-two week high of $54.37. The business has a fifty day simple moving average of $20.05 and a 200-day simple moving average of $22.09. The firm has a market cap of $878.92 million, a P/E ratio of -5.01 and a beta of 0.85.

Cogent Communications (NASDAQ:CCOI - Get Free Report) last issued its quarterly earnings data on Monday, May 4th. The technology company reported ($0.83) earnings per share (EPS) for the quarter, topping the consensus estimate of ($1.03) by $0.20. The business had revenue of $239.19 million during the quarter, compared to the consensus estimate of $241.31 million. Cogent Communications had a negative return on equity of 842.48% and a negative net margin of 17.53%.The business's revenue was down 3.2% on a year-over-year basis. During the same period in the previous year, the firm posted ($1.09) earnings per share. Equities analysts forecast that Cogent Communications will post -3.9 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Sheryl Lynn Kennedy sold 3,300 shares of the firm's stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $22.99, for a total transaction of $75,867.00. Following the transaction, the director directly owned 10,100 shares of the company's stock, valued at approximately $232,199. This trade represents a 24.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Lewis H. Ferguson sold 2,206 shares of the firm's stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $23.03, for a total value of $50,804.18. Following the transaction, the director directly owned 20,449 shares of the company's stock, valued at $470,940.47. This represents a 9.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 12,756 shares of company stock valued at $292,467 over the last three months. 4.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Quarry LP bought a new position in Cogent Communications during the third quarter valued at about $27,000. Caitong International Asset Management Co. Ltd bought a new position in Cogent Communications during the fourth quarter valued at about $28,000. Parallel Advisors LLC boosted its stake in Cogent Communications by 208.6% during the first quarter. Parallel Advisors LLC now owns 1,432 shares of the technology company's stock valued at $27,000 after buying an additional 968 shares in the last quarter. Hantz Financial Services Inc. boosted its stake in Cogent Communications by 313.9% during the fourth quarter. Hantz Financial Services Inc. now owns 1,486 shares of the technology company's stock valued at $32,000 after buying an additional 1,127 shares in the last quarter. Finally, Strs Ohio bought a new position in Cogent Communications during the first quarter valued at about $104,000. Institutional investors own 92.45% of the company's stock.

About Cogent Communications

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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