Cogent Communications (NASDAQ:CCOI) Given "Sell (D)" Rating at Weiss Ratings

Key Points

• Cogent Communications has received a "Sell (D)" rating from Weiss Ratings, which has been reiterated in a recent research report.
• Several analysts have adjusted their ratings and target prices for the stock, with Royal Bank of Canada lowering its target from $74 to $40, while Citigroup cut its target from $67 to $33.
• The company reported a loss of ($1.21) per share in its latest earnings, missing the consensus estimate and reflecting a decline in revenue of 5.4% compared to the prior year.

Cogent Communications (NASDAQ:CCOI - Get Free Report)'s stock had its "sell (d)" rating reiterated by equities research analysts at Weiss Ratings in a research report issued on Wednesday,Weiss Ratings reports.

A number of other research analysts also recently commented on the company. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $40.00 price target (down previously from $74.00) on shares of Cogent Communications in a research note on Friday, August 8th. Citigroup downgraded Cogent Communications from a "buy" rating to a "neutral" rating and lowered their target price for the stock from $67.00 to $33.00 in a research note on Tuesday, August 12th. Wells Fargo & Company raised Cogent Communications from an "underweight" rating to an "overweight" rating and set a $45.00 target price for the company in a research note on Monday, August 18th. Finally, The Goldman Sachs Group assumed coverage on Cogent Communications in a research note on Tuesday, September 2nd. They set a "neutral" rating and a $40.00 target price for the company. Two equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $46.60.

Cogent Communications Stock Up 0.2%

Shares of CCOI traded up $0.07 during mid-day trading on Wednesday, hitting $42.58. 1,136,865 shares of the company's stock were exchanged, compared to its average volume of 1,527,162. The company has a market cap of $2.09 billion, a PE ratio of -9.38 and a beta of 0.77. Cogent Communications has a 52 week low of $29.61 and a 52 week high of $86.76. The company has a 50-day simple moving average of $38.34 and a 200 day simple moving average of $46.82. The company has a debt-to-equity ratio of 49.06, a current ratio of 2.31 and a quick ratio of 2.31.

Cogent Communications (NASDAQ:CCOI - Get Free Report) last released its earnings results on Thursday, August 7th. The technology company reported ($1.21) earnings per share for the quarter, missing the consensus estimate of ($0.93) by ($0.28). Cogent Communications had a negative net margin of 21.57% and a negative return on equity of 117.56%. The firm had revenue of $246.25 million during the quarter, compared to the consensus estimate of $247.79 million. During the same period in the prior year, the business posted ($0.68) earnings per share. Cogent Communications's quarterly revenue was down 5.4% compared to the same quarter last year. On average, research analysts forecast that Cogent Communications will post -4.55 earnings per share for the current fiscal year.

Cogent Communications announced that its board has approved a share repurchase plan on Thursday, August 7th that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the technology company to repurchase up to 4.6% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's management believes its stock is undervalued.

Insider Activity at Cogent Communications

In other Cogent Communications news, VP Henry W. Kilmer sold 2,400 shares of the company's stock in a transaction on Friday, September 5th. The stock was sold at an average price of $36.99, for a total value of $88,776.00. Following the completion of the transaction, the vice president owned 36,200 shares in the company, valued at $1,339,038. This represents a 6.22% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Dave Schaeffer sold 818,909 shares of the stock in a transaction on Friday, August 8th. The stock was sold at an average price of $27.50, for a total value of $22,519,997.50. Following the transaction, the chief executive officer owned 697,143 shares of the company's stock, valued at $19,171,432.50. The trade was a 54.02% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 2,663,978 shares of company stock valued at $82,687,283. 11.40% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. AlphaQuest LLC purchased a new position in shares of Cogent Communications during the 1st quarter valued at about $36,000. Farther Finance Advisors LLC grew its position in shares of Cogent Communications by 297.8% in the 2nd quarter. Farther Finance Advisors LLC now owns 740 shares of the technology company's stock worth $36,000 after buying an additional 554 shares during the last quarter. Atlantic Union Bankshares Corp bought a new stake in shares of Cogent Communications in the 2nd quarter worth approximately $40,000. Byrne Asset Management LLC bought a new stake in shares of Cogent Communications during the second quarter valued at approximately $41,000. Finally, Resources Management Corp CT ADV bought a new stake in shares of Cogent Communications during the first quarter valued at approximately $48,000. 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.

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