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

Key Points

• Cogent Communications has a consensus analyst rating of “Hold” from 11 brokerages, with an average 12-month price target of $24.90. Recent analyst moves were mixed, but several firms cut their targets to the high-teens or low-$20s.
• Insider activity has been notable, with CFO Thaddeus Gerard Weed and VP Henry W. Kilmer both selling shares in mid-June. Insiders still own about 4.20% of the company, while institutional investors hold 92.45%.
• The stock has been under pressure, recently trading near its 52-week low at $14.19, and the company reported a quarterly loss of $0.83 per share despite beating EPS estimates. Revenue came in slightly below expectations, and analysts expect a full-year loss of $4.25 per share.

Shares of Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Get Free Report) have earned an average rating of "Hold" from the eleven ratings firms that are covering the firm, MarketBeat reports. One analyst has rated the stock with a sell recommendation, seven have issued a hold recommendation and three have assigned a buy recommendation to the company. The average 12-month price target among brokers that have covered the stock in the last year is $24.90.

Several research analysts recently weighed in on the stock. Royal Bank Of Canada cut their price target on shares of Cogent Communications from $22.00 to $18.00 and set a "sector perform" rating on the stock in a report on Wednesday, May 6th. Williams Trading set a $40.00 price target on shares of Cogent Communications in a report on Monday, February 23rd. JPMorgan Chase & Co. restated a "neutral" rating and set a $22.00 price target on shares of Cogent Communications in a report on Friday, May 29th. Wells Fargo & Company cut their price target on shares of Cogent Communications from $23.00 to $18.00 and set an "equal weight" rating on the stock in a report on Thursday, May 7th. Finally, UBS Group cut their price target on shares of Cogent Communications from $21.00 to $17.00 and set a "neutral" rating on the stock in a report on Tuesday, May 5th.

Insider Activity at Cogent Communications

In related news, CFO Thaddeus Gerard Weed sold 4,850 shares of the company's stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $16.79, for a total transaction of $81,431.50. Following the sale, the chief financial officer owned 197,900 shares of the company's stock, valued at approximately $3,322,741. This represents a 2.39% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Henry W. Kilmer sold 2,400 shares of the company's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $17.01, for a total transaction of $40,824.00. Following the sale, the vice president directly owned 38,600 shares in the company, valued at $656,586. This trade represents a 5.85% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 4.20% of the company's stock.

Hedge Funds Weigh In On Cogent Communications

A number of hedge funds and other institutional investors have recently bought and sold shares of CCOI. Turtle Creek Asset Management Inc. raised its holdings in Cogent Communications by 64.9% during the 3rd quarter. Turtle Creek Asset Management Inc. now owns 4,603,933 shares of the technology company's stock valued at $176,561,000 after buying an additional 1,811,222 shares during the last quarter. Park West Asset Management LLC bought a new position in Cogent Communications in the 4th quarter worth $30,380,000. Bank of America Corp DE raised its holdings in Cogent Communications by 551.2% in the 3rd quarter. Bank of America Corp DE now owns 1,146,417 shares of the technology company's stock worth $43,965,000 after purchasing an additional 970,367 shares in the last quarter. MIG Capital LLC bought a new position in Cogent Communications in the 4th quarter worth $12,272,000. Finally, First Trust Advisors LP raised its holdings in Cogent Communications by 86.8% in the 4th quarter. First Trust Advisors LP now owns 1,177,398 shares of the technology company's stock worth $25,385,000 after purchasing an additional 547,188 shares in the last quarter. Hedge funds and other institutional investors own 92.45% of the company's stock.

Cogent Communications Stock Performance

Cogent Communications stock opened at $14.19 on Friday. Cogent Communications has a fifty-two week low of $14.13 and a fifty-two week high of $54.37. The stock has a market cap of $710.64 million, a PE ratio of -4.00 and a beta of 0.77. The firm's 50-day simple moving average is $18.87 and its 200 day simple moving average is $20.81.

Cogent Communications (NASDAQ:CCOI - Get Free Report) last released its quarterly earnings results on Monday, May 4th. The technology company reported ($0.83) earnings per share for the quarter, topping the consensus estimate of ($1.03) by $0.20. Cogent Communications had a negative net margin of 17.53% and a negative return on equity of 842.48%. The business had revenue of $239.19 million for the quarter, compared to analysts' expectations of $241.31 million. During the same period in the previous year, the company earned ($1.09) earnings per share. The firm's revenue for the quarter was down 3.2% compared to the same quarter last year. As a group, analysts predict that Cogent Communications will post -4.25 EPS for the current fiscal year.

Cogent Communications Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 2nd. Stockholders of record on Monday, May 18th were given a $0.02 dividend. The ex-dividend date of this dividend was Monday, May 18th. This represents a $0.08 annualized dividend and a dividend yield of 0.6%. Cogent Communications's payout ratio is -2.25%.

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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