Cogent Communications (NASDAQ:CCOI) Downgraded to "Strong Sell" Rating by Zacks Research

Key Points

• Cogent Communications was downgraded from a "hold" rating to a "strong sell" rating by Zacks Research, indicating significant concerns about the stock's value.
• The company's latest earnings report showed a loss of ($1.21) per share, missing analyst estimates, with a revenue decline of 5.4% compared to the same quarter last year.
• Insider selling activity was notable, with CEO Dave Schaeffer selling over 1.8 million shares, representing a 54.84% decrease in his ownership stake in the company.

Cogent Communications (NASDAQ:CCOI - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Tuesday,Zacks.com reports.

CCOI has been the topic of a number of other research reports. Wells Fargo & Company upgraded shares of Cogent Communications from an "underweight" rating to an "overweight" rating and set a $45.00 price target on the stock in a report on Monday, August 18th. The Goldman Sachs Group began coverage on shares of Cogent Communications in a report on Tuesday, September 2nd. They set a "neutral" rating and a $40.00 price target on the stock. Royal Bank Of Canada restated a "sector perform" rating and set a $40.00 price target (down previously from $74.00) on shares of Cogent Communications in a report on Friday, August 8th. Weiss Ratings reiterated a "sell (d)" rating on shares of Cogent Communications in a report on Wednesday, October 8th. Finally, Citigroup downgraded shares of Cogent Communications from a "buy" rating to a "neutral" rating and dropped their target price for the stock from $67.00 to $33.00 in a report on Tuesday, August 12th. Two research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $46.60.

Cogent Communications Stock Up 2.5%

Cogent Communications stock opened at $45.10 on Tuesday. The company has a market capitalization of $2.22 billion, a P/E ratio of -9.93 and a beta of 0.77. The firm's fifty day simple moving average is $38.20 and its 200-day simple moving average is $46.13. The company has a current ratio of 2.31, a quick ratio of 2.31 and a debt-to-equity ratio of 49.06. Cogent Communications has a 1-year low of $29.61 and a 1-year high of $86.76.

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 for the quarter, missing analysts' consensus estimates of ($0.93) by ($0.28). The business had revenue of $246.25 million for the quarter, compared to the consensus estimate of $247.79 million. Cogent Communications had a negative net margin of 21.57% and a negative return on equity of 117.56%. The firm's revenue for the quarter was down 5.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.68) EPS. Sell-side analysts forecast that Cogent Communications will post -4.55 earnings per share for the current fiscal year.

Cogent Communications declared that its Board of Directors has approved a stock repurchase program on Thursday, August 7th that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the technology company to buy up to 4.6% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board of directors believes its stock is undervalued.

Insider Transactions at Cogent Communications

In other news, CEO Dave Schaeffer sold 1,840,669 shares of the business's stock in a transaction dated Thursday, August 7th. The shares were sold at an average price of $32.60, for a total transaction of $60,005,809.40. Following the transaction, the chief executive officer owned 1,516,052 shares in the company, valued at approximately $49,423,295.20. The trade was a 54.84% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Sheryl Lynn Kennedy sold 2,000 shares of the business's stock in a transaction dated Thursday, August 21st. The stock was sold at an average price of $36.35, for a total transaction of $72,700.00. Following the transaction, the director owned 10,017 shares in the company, valued at approximately $364,117.95. The trade was a 16.64% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 2,663,978 shares of company stock worth $82,687,283. 11.40% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in CCOI. GAMMA Investing LLC increased its holdings in shares of Cogent Communications by 35.4% during the 1st quarter. GAMMA Investing LLC now owns 1,047 shares of the technology company's stock worth $64,000 after purchasing an additional 274 shares during the period. SG Americas Securities LLC bought a new position in shares of Cogent Communications during the 1st quarter worth about $695,000. Good Steward Wealth Advisors LLC acquired a new stake in shares of Cogent Communications during the 1st quarter valued at about $277,000. TrueMark Investments LLC acquired a new stake in shares of Cogent Communications during the 1st quarter valued at about $551,000. Finally, Consolidated Planning Corp boosted its position in shares of Cogent Communications by 62.3% during the 1st quarter. Consolidated Planning Corp now owns 18,325 shares of the technology company's stock valued at $1,124,000 after acquiring an additional 7,037 shares in the last quarter. Institutional investors own 92.45% of the company's stock.

Cogent Communications Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.