Cogent Communications Holdings, Inc. (NASDAQ:CCOI) CEO Sells $60,005,809.40 in Stock

Key Points

• Cogent Communications CEO Dave Schaeffer sold over 1.84 million shares for approximately $60 million, reducing his ownership by nearly 55%, which raises concerns about the company's outlook.
• The company reported a loss of $1.21 per share for the recent quarter, missing analyst expectations and reflecting a 5.4% revenue decline year-over-year.
• Cogent announced a new $100 million stock buyback program and increased its quarterly dividend to $1.015 per share, indicating management's belief in the stock's undervaluation.

Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Get Free Report) CEO Dave Schaeffer sold 1,840,669 shares of the firm's stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $32.60, for a total value of $60,005,809.40. Following the transaction, the chief executive officer owned 1,516,052 shares in the company, valued at $49,423,295.20. This represents a 54.84% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link.

Dave Schaeffer also recently made the following trade(s):

• On Friday, August 8th, Dave Schaeffer sold 818,909 shares of Cogent Communications stock. The shares were sold at an average price of $27.50, for a total value of $22,519,997.50.
• On Monday, June 16th, Dave Schaeffer sold 70,000 shares of Cogent Communications stock. The shares were sold at an average price of $47.11, for a total value of $3,297,700.00.
• On Friday, June 13th, Dave Schaeffer sold 55,000 shares of Cogent Communications stock. The shares were sold at an average price of $47.40, for a total value of $2,607,000.00.
• On Wednesday, June 11th, Dave Schaeffer sold 55,000 shares of Cogent Communications stock. The shares were sold at an average price of $48.51, for a total value of $2,668,050.00.
• On Monday, June 9th, Dave Schaeffer sold 55,000 shares of Cogent Communications stock. The shares were sold at an average price of $48.64, for a total value of $2,675,200.00.
• On Friday, June 6th, Dave Schaeffer sold 80,000 shares of Cogent Communications stock. The stock was sold at an average price of $47.78, for a total value of $3,822,400.00.
• On Wednesday, June 4th, Dave Schaeffer sold 75,000 shares of Cogent Communications stock. The stock was sold at an average price of $47.76, for a total value of $3,582,000.00.
• On Tuesday, May 27th, Dave Schaeffer sold 20,000 shares of Cogent Communications stock. The stock was sold at an average price of $48.67, for a total value of $973,400.00.
• On Thursday, May 22nd, Dave Schaeffer sold 25,000 shares of Cogent Communications stock. The stock was sold at an average price of $46.27, for a total value of $1,156,750.00.

Cogent Communications Stock Up 2.5%

Shares of NASDAQ CCOI traded up $0.87 on Wednesday, hitting $34.93. The company had a trading volume of 441,294 shares, compared to its average volume of 698,912. Cogent Communications Holdings, Inc. has a 12-month low of $29.61 and a 12-month high of $86.76. The business has a 50 day moving average of $47.20 and a two-hundred day moving average of $57.29. The company has a quick ratio of 2.31, a current ratio of 2.31 and a debt-to-equity ratio of 49.06. The firm has a market capitalization of $1.72 billion, a P/E ratio of -7.68 and a beta of 0.68.

Cogent Communications (NASDAQ:CCOI - Get Free Report) last issued its earnings results on Thursday, August 7th. The technology company reported ($1.21) earnings per share for the quarter, missing the consensus estimate of ($0.93) by ($0.28). Cogent Communications had a negative return on equity of 117.56% and a negative net margin of 21.57%. The company had revenue of $246.25 million during the quarter, compared to analysts' expectations of $247.79 million. During the same period in the previous year, the company earned ($0.68) EPS. Cogent Communications's quarterly revenue was down 5.4% on a year-over-year basis. As a group, equities research analysts forecast that Cogent Communications Holdings, Inc. will post -4.55 earnings per share for the current fiscal year.

Cogent Communications announced that its Board of Directors has authorized a share repurchase program on Thursday, August 7th that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the technology company to purchase up to 4.6% of its stock through open market purchases. Stock buyback programs are often a sign that the company's management believes its shares are undervalued.

Cogent Communications Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 5th. Stockholders of record on Thursday, August 21st will be given a dividend of $1.015 per share. This represents a $4.06 dividend on an annualized basis and a dividend yield of 11.6%. The ex-dividend date is Thursday, August 21st. This is a positive change from Cogent Communications's previous quarterly dividend of $1.01. Cogent Communications's payout ratio is currently -88.99%.

Hedge Funds Weigh In On Cogent Communications

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. AlphaQuest LLC purchased a new stake in shares of Cogent Communications in the first quarter valued at $36,000. Farther Finance Advisors LLC grew its position in shares of Cogent Communications by 297.8% in the second quarter. Farther Finance Advisors LLC now owns 740 shares of the technology company's stock valued at $36,000 after purchasing an additional 554 shares during the last quarter. Atlantic Union Bankshares Corp acquired a new stake in shares of Cogent Communications in the second quarter valued at about $40,000. Byrne Asset Management LLC acquired a new stake in Cogent Communications during the second quarter worth about $41,000. Finally, Itau Unibanco Holding S.A. grew its position in Cogent Communications by 58.9% during the fourth quarter. Itau Unibanco Holding S.A. now owns 618 shares of the technology company's stock worth $48,000 after buying an additional 229 shares in the last quarter. 92.45% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of research firms have recently weighed in on CCOI. The Goldman Sachs Group cut their price target on Cogent Communications from $71.00 to $62.00 and set a "neutral" rating for the company in a report on Friday, May 9th. Citigroup downgraded Cogent Communications from a "buy" rating to a "neutral" rating and lowered their price objective for the company from $67.00 to $33.00 in a research report on Tuesday. UBS Group lowered their price objective on Cogent Communications from $102.00 to $75.00 and set a "buy" rating for the company in a research report on Friday, May 9th. Finally, Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $40.00 price objective (down previously from $74.00) on shares of Cogent Communications in a research report on Friday, August 8th. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating and two have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $60.83.

About Cogent Communications

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.