Cogent Communications Holdings, Inc. (NASDAQ:CCOI) Given Consensus Rating of "Hold" by Brokerages

Key Points

• Analysts have a consensus “Hold” rating on Cogent Communications, with seven holds, three buys and one sell among 11 firms. The average 12-month price target is $23.10, though several brokerages recently lowered their targets.
• Cogent reported quarterly EPS of $1.38, beating the consensus estimate, but revenue of $235.6 million declined 4.4% year over year and missed expectations. Analysts forecast a full-year loss of $4.25 per share.
• The stock opened at $9.92, near its 52-week low of $9.00, while the company maintained its quarterly dividend of $0.02 per share. Declining service revenue, insider selling and reported securities-class-action claims add to the investment risks.

Shares of Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Get Free Report) have been given a consensus rating of "Hold" by the eleven research firms that are covering the company, MarketBeat reports. One analyst has rated the stock with a sell recommendation, seven have issued a hold recommendation and three have issued a buy recommendation on the company. The average 12 month price objective among brokerages that have covered the stock in the last year is $23.10.

Several research analysts have recently commented on the stock. Citigroup lowered their target price on shares of Cogent Communications from $22.00 to $20.00 and set a "neutral" rating on the stock in a report on Tuesday, May 19th. Wells Fargo & Company lowered their price objective on Cogent Communications from $18.00 to $14.00 and set an "equal weight" rating on the stock in a research note on Friday. Royal Bank Of Canada cut their target price 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. JPMorgan Chase & Co. reissued a "neutral" rating and set a $22.00 target price on shares of Cogent Communications in a report on Friday, May 29th. Finally, Wall Street Zen raised Cogent Communications from a "strong sell" rating to a "sell" rating in a research note on Saturday, June 27th.

Cogent Communications Price Performance

CCOI stock opened at $9.92 on Monday. Cogent Communications has a fifty-two week low of $9.00 and a fifty-two week high of $45.69. The stock has a market capitalization of $508.10 million, a price-to-earnings ratio of -10.33 and a beta of 0.80. The business's fifty day moving average price is $13.69 and its two-hundred day moving average price is $18.53.

Cogent Communications (NASDAQ:CCOI - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The technology company reported $1.38 EPS for the quarter, beating the consensus estimate of ($1.00) by $2.38. Cogent Communications had a negative net margin of 4.73% and a negative return on equity of 842.48%. The business had revenue of $235.56 million for the quarter, compared to the consensus estimate of $239.55 million. During the same period in the prior year, the company posted ($1.21) earnings per share. Cogent Communications's revenue was down 4.4% compared to the same quarter last year. Research analysts expect that Cogent Communications will post -4.25 EPS for the current year.

Cogent Communications Dividend Announcement

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 payout ratio is presently -8.33%.

Trending Headlines about Cogent Communications

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

• Positive Sentiment: Cogent’s second-quarter loss was narrower than expected on an adjusted basis, with a loss of approximately $0.80 per share versus the $1.12 consensus estimate. The company also benefited from selling 10 data centers for $224.2 million, generating a $130.7 million gain. Cogent Incurs Narrower-Than-Expected Q2 Loss Despite Lower Revenues
• Positive Sentiment: TD Cowen maintained a “buy” rating, although it reduced its price target from $34 to $30. KeyCorp also kept an “overweight” rating, implying substantial upside from current levels. Analyst price-target updates
• Neutral Sentiment: Cogent declared a $0.02 quarterly dividend, payable September 4 to shareholders of record August 21. The payment provides a modest income return, but the small dividend is unlikely to offset broader concerns about the business.
• Negative Sentiment: Second-quarter service revenue of $235.6 million missed the $239.6 million consensus and declined 4.4% year over year. Weakness in Sprint Wireline and off-net services offset growth in on-net and wavelength offerings, raising questions about near-term demand and backlog conversion. Cogent Communications Reports Second Quarter 2026 Results
• Negative Sentiment: Wells Fargo lowered its target from $18 to $14 and assigned an “equal weight” rating. KeyCorp cut its target from $25 to $15, while TD Cowen also reduced its target, indicating analysts are recalibrating expectations despite some remaining bullish views. Analyst price-target updates
• Negative Sentiment: Multiple law firms publicized a securities class action covering investors who purchased CCOI shares between February 29, 2024, and May 1, 2026. The claims reportedly concern undisclosed demand and backlog problems and alleged overly optimistic growth and dividend statements. The lead-plaintiff deadline is September 21, 2026, increasing legal and reputational risk. Cogent securities-fraud class-action notice

Insider Activity at Cogent Communications

In other Cogent Communications news, CFO Thaddeus Gerard Weed sold 4,850 shares of the company's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $16.79, for a total transaction of $81,431.50. Following the completion of the sale, the chief financial officer directly owned 197,900 shares in the company, valued at $3,322,741. This represents a 2.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Henry W. Kilmer sold 2,400 shares of the firm's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $17.01, for a total value of $40,824.00. Following the completion of the sale, the vice president directly owned 38,600 shares in the company, valued at approximately $656,586. This represents a 5.85% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 4.20% of the company's stock.

Institutional Trading of Cogent Communications

Several institutional investors and hedge funds have recently modified their holdings of CCOI. AQR Capital Management LLC acquired a new position in Cogent Communications during the first quarter worth about $202,000. Goldman Sachs Group Inc. boosted its stake in shares of 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 purchasing an additional 100,969 shares in the last quarter. Empowered Funds LLC grew its holdings in shares of Cogent Communications by 10.3% during the 1st quarter. Empowered Funds LLC now owns 5,466 shares of the technology company's stock valued at $335,000 after purchasing an additional 510 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of 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 purchasing an additional 30,630 shares during the last quarter. Finally, Strs Ohio acquired a new position in Cogent Communications during the 1st quarter worth approximately $104,000. 92.45% of the stock is currently owned by institutional investors.

Cogent Communications Company Profile

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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