Cogent Communications Holdings, Inc. (NASDAQ:CCOI) Receives Average Recommendation of "Hold" from Analysts

Key Points

• Cogent Communications (NASDAQ:CCOI) has an average analyst rating of "Hold" from 11 research firms, with a consensus 12-month price target of $24.90.
• Recent analyst actions were mixed but mostly cautious, including lowered price targets from UBS and Citigroup, while TD Cowen still maintained a Buy rating despite cutting its target.
• The company reported its latest quarter with EPS of -$0.83, beating expectations, while revenue came in slightly below estimates and was down 3.2% year over year.

Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Get Free Report) has earned an average rating of "Hold" from the eleven research firms that are presently covering the stock, Marketbeat Ratings reports. One research analyst has rated the stock with a sell rating, seven have given a hold rating and three have given a buy rating to the company. The average 12 month target price among brokerages that have updated their coverage on the stock in the last year is $24.90.

A number of equities research analysts recently commented on the company. UBS Group decreased their target price on Cogent Communications from $21.00 to $17.00 and set a "neutral" rating for the company in a report on Tuesday, May 5th. Weiss Ratings downgraded Cogent Communications from a "sell (d+)" rating to a "sell (d)" rating in a report on Wednesday, May 20th. Wall Street Zen raised Cogent Communications from a "strong sell" rating to a "sell" rating in a report on Sunday, April 26th. Citigroup reduced their price target on Cogent Communications from $22.00 to $20.00 and set a "neutral" rating for the company in a research report on Tuesday, May 19th. Finally, TD Cowen reduced their price target on Cogent Communications from $40.00 to $34.00 and set a "buy" rating for the company in a research report on Tuesday, May 5th.

Cogent Communications Stock Up 9.9%

Cogent Communications stock opened at $19.96 on Wednesday. Cogent Communications has a 52 week low of $14.82 and a 52 week high of $54.37. The company has a market capitalization of $999.60 million, a price-to-earnings ratio of -5.62 and a beta of 0.85. The stock has a 50-day moving average price of $19.71 and a 200 day moving average price of $21.15.

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

Cogent Communications Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 2nd. Investors of record on Monday, May 18th will be given a dividend of $0.02 per share. This represents a $0.08 annualized dividend and a yield of 0.4%. The ex-dividend date is Monday, May 18th. Cogent Communications's dividend payout ratio (DPR) is currently -2.25%.

Insider Buying and Selling

In related news, VP Henry W. Kilmer sold 2,400 shares of Cogent Communications stock in a transaction that occurred on Friday, March 6th. The stock was sold at an average price of $23.35, for a total transaction of $56,040.00. Following the completion of the transaction, the vice president directly owned 41,000 shares in the company, valued at approximately $957,350. This trade represents a 5.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Sheryl Lynn Kennedy sold 3,300 shares of Cogent Communications stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $22.99, for a total value of $75,867.00. Following the transaction, the director owned 10,100 shares of the company's stock, valued at approximately $232,199. This represents a 24.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 12,756 shares of company stock valued at $292,467 in the last ninety days. Insiders own 4.20% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of CCOI. AQR Capital Management LLC purchased a new position in Cogent Communications during the first quarter valued at approximately $202,000. Goldman Sachs Group Inc. increased its position in shares of Cogent Communications by 26.9% in the first quarter. Goldman Sachs Group Inc. now owns 476,513 shares of the technology company's stock valued at $29,215,000 after buying an additional 100,969 shares in the last quarter. Empowered Funds LLC increased its position in shares of Cogent Communications by 10.3% in the first quarter. Empowered Funds LLC now owns 5,466 shares of the technology company's stock valued at $335,000 after buying an additional 510 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Cogent Communications by 23.4% in the first 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 buying an additional 30,630 shares in the last quarter. Finally, Strs Ohio purchased a new stake in shares of Cogent Communications in the first quarter valued at approximately $104,000. 92.45% of the stock is currently owned by hedge funds and other institutional investors.

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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