Cogent Communications (NASDAQ:CCOI) Given New $15.00 Price Target at KeyCorp

Key Points

• KeyCorp cut Cogent Communications’ price target from $25 to $15 but maintained an “overweight” rating, implying roughly 53% upside from the prior close. The broader analyst consensus is “Hold,” with an average target of $23.90.
• Cogent shares fell 10.2% to $9.80, near their 52-week low of $9.76. The stock has declined substantially below its 50-day and 200-day moving averages.
• Although quarterly EPS beat estimates, revenue fell 4.4% year over year and missed forecasts, while the company remained unprofitable. Recent earnings were also supported by a $130.7 million gain from selling 10 data centers, raising concerns about underlying operating performance.

Cogent Communications (NASDAQ:CCOI - Get Free Report) had its price target lowered by equities researchers at KeyCorp from $25.00 to $15.00 in a research report issued on Friday,Benzinga reports. The brokerage currently has an "overweight" rating on the technology company's stock. KeyCorp's price target suggests a potential upside of 53.03% from the company's previous close.

Other research analysts have also recently issued research reports about the stock. UBS Group dropped their target price on shares of Cogent Communications from $21.00 to $17.00 and set a "neutral" rating for the company in a report on Tuesday, May 5th. Wells Fargo & Company cut their price objective on Cogent Communications from $23.00 to $18.00 and set an "equal weight" rating on the stock in a report on Thursday, May 7th. TD Cowen restated a "buy" rating on shares of Cogent Communications in a research report on Monday, June 22nd. Weiss Ratings cut Cogent Communications from a "sell (d+)" rating to a "sell (d)" rating in a report on Wednesday, May 20th. Finally, Royal Bank Of Canada dropped 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. Three research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $23.90.

Cogent Communications Trading Down 10.2%

NASDAQ CCOI traded down $1.11 on Friday, hitting $9.80. 441,962 shares of the company's stock were exchanged, compared to its average volume of 1,232,951. The stock has a 50-day moving average of $13.85 and a 200-day moving average of $18.62. The stock has a market cap of $490.88 million, a price-to-earnings ratio of -2.72 and a beta of 0.80. Cogent Communications has a 52 week low of $9.76 and a 52 week high of $45.69.

Cogent Communications (NASDAQ:CCOI - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The technology company reported $1.38 earnings per share (EPS) for the quarter, beating the consensus estimate of ($1.00) by $2.38. The company had revenue of $235.56 million for the quarter, compared to analyst estimates of $239.55 million. Cogent Communications had a negative return on equity of 842.48% and a negative net margin of 17.53%.The company's revenue for the quarter was down 4.4% compared to the same quarter last year. During the same quarter last year, the company posted ($1.21) EPS. As a group, analysts predict that Cogent Communications will post -4.25 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Thaddeus Gerard Weed sold 4,850 shares of the firm's stock in a transaction dated Tuesday, June 16th. The shares were 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 owned 197,900 shares in the company, valued at approximately $3,322,741. This trade represents a 2.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, VP Henry W. Kilmer sold 2,400 shares of Cogent Communications stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $17.01, for a total transaction 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 disclosure for this sale is available in the SEC filing. 4.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Cogent Communications

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

More Cogent Communications News

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

• Positive Sentiment: Cogent reported second-quarter 2026 earnings that exceeded consensus on a headline basis. Results included a $130.7 million gain from the sale of 10 data centers, generating $224.2 million in net proceeds. Cogent Communications Reports Second Quarter 2026 Results
• Neutral Sentiment: Cogent declared a quarterly dividend of $0.02 per share, payable September 4 to shareholders of record August 21. The payout provides limited income, with an annualized yield of approximately 0.7%; the ex-dividend date is August 21.
• Negative Sentiment: Underlying operating performance was weak: second-quarter service revenue of approximately $235.6 million missed estimates of $239.6 million and declined 4.4% year over year. The company remains unprofitable, and the headline earnings benefit was significantly influenced by the data-center sale rather than recurring operations. Cogent Communications Reports Q2 Loss and Misses Revenue Estimates
• Negative Sentiment: Several law firms publicized a securities class action concerning alleged misstatements or omissions about Cogent’s optical wavelength services, demand outlook and purported backlog. The allegations are unproven, but the litigation adds reputational, legal and financial risk. Investors who purchased shares during February 29, 2024–May 1, 2026 have until September 21, 2026 to seek lead-plaintiff status. Robbins Geller Class Action Notice
• Negative Sentiment: The company’s reduced dividend and questions about wavelength backlog conversion appear to have undermined confidence in its prior growth and income outlook, intensifying selling pressure after the earnings release.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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