Cogent Communications Holdings, Inc. (NASDAQ:CCOI) Raises Dividend to $1.02 Per Share

Key Points

• Cogent Communications has raised its quarterly dividend to $1.02 per share, reflecting a 0.5% increase from the previous dividend of $1.01, with a yield of 10.3%.
• The company has a troubling payout ratio of -174.1%, indicating it relies on its balance sheet to fulfill dividend payments, raising concerns about future sustainability.
• In the latest earnings report, Cogent reported an earnings per share (EPS) of ($1.21), missing estimates and showing a substantial decline in revenue of 5.4% year-over-year.

Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Get Free Report) declared a quarterly dividend on Thursday, August 7th, RTT News reports. Shareholders of record on Thursday, August 21st will be paid a dividend of 1.015 per share by the technology company on Friday, September 5th. This represents a c) annualized dividend and a yield of 10.3%. This is a 0.5% increase from Cogent Communications's previous quarterly dividend of $1.01.

Cogent Communications has a payout ratio of -174.1% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Cogent Communications to earn ($2.63) per share next year, which means the company may not be able to cover its $4.04 annual dividend with an expected future payout ratio of -153.6%.

Cogent Communications Trading Down 10.4%

Shares of CCOI opened at $39.33 on Thursday. The company has a quick ratio of 1.49, a current ratio of 1.49 and a debt-to-equity ratio of 13.89. The stock's 50-day moving average price is $48.28 and its 200 day moving average price is $58.55. Cogent Communications has a 12-month low of $43.00 and a 12-month high of $86.76. The firm has a market capitalization of $1.94 billion, a price-to-earnings ratio of -10.02 and a beta of 0.68.

Cogent Communications (NASDAQ:CCOI - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The technology company reported ($1.21) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.77) by ($0.44). Cogent Communications had a negative net margin of 18.76% and a negative return on equity of 70.29%. The company's revenue for the quarter was down 5.4% compared to the same quarter last year. During the same period last year, the company posted ($0.68) earnings per share. As a group, research analysts predict that Cogent Communications will post -4.55 earnings per share for the current year.

Insider Transactions at Cogent Communications

In other news, VP Henry W. Kilmer sold 2,400 shares of the firm's stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $47.95, for a total value of $115,080.00. Following the transaction, the vice president owned 38,600 shares of the company's stock, valued at $1,850,870. This trade represents a 5.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Thaddeus Gerard Weed sold 4,900 shares of Cogent Communications stock in a transaction on Monday, June 9th. The shares were sold at an average price of $48.04, for a total transaction of $235,396.00. Following the transaction, the chief financial officer owned 98,000 shares in the company, valued at approximately $4,707,920. This trade represents a 4.76% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 445,500 shares of company stock worth $21,285,069. Company insiders own 11.40% of the company's stock.

Institutional Investors Weigh In On Cogent Communications

Several large investors have recently made changes to their positions in the company. AlphaQuest LLC bought a new position in Cogent Communications in the 1st quarter worth about $36,000. Itau Unibanco Holding S.A. raised its stake in shares of Cogent Communications by 58.9% in the fourth quarter. Itau Unibanco Holding S.A. now owns 618 shares of the technology company's stock worth $48,000 after purchasing an additional 229 shares during the last quarter. Farther Finance Advisors LLC grew its position in Cogent Communications by 297.8% during the 2nd quarter. Farther Finance Advisors LLC now owns 740 shares of the technology company's stock worth $36,000 after purchasing an additional 554 shares during the period. Resources Management Corp CT ADV acquired a new stake in shares of Cogent Communications during the 1st quarter worth approximately $48,000. Finally, Atlantic Union Bankshares Corp acquired a new stake in shares of Cogent Communications during the 2nd quarter valued at about $40,000. 92.45% of the stock is owned by institutional investors.

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.

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