Cogent Communications (NASDAQ:CCOI) Hits New 1-Year Low After Earnings Miss

Key Points

• Cogent Communications hit a new 52-week low at $40.23 following an earnings miss, reporting a loss of ($1.21) EPS compared to analysts' expectations of ($0.77).
• The company declared a quarterly dividend of $1.015, reflecting an increase from the previous dividend, with an annual yield of 10.7%.
• Despite recent performance, Wall Street analysts maintain a consensus "Hold" rating with a target price of $75.75 for Cogent Communications stock.

Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Get Free Report) hit a new 52-week low during mid-day trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $43.00 and last traded at $40.23, with a volume of 2603 shares trading hands. The stock had previously closed at $43.88.

The technology company reported ($1.21) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.77) by ($0.44). Cogent Communications had a negative net margin of 18.76% and a negative return on equity of 70.29%. The business's revenue was down 5.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.68) earnings per share.

Cogent Communications Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 5th. Shareholders of record on Thursday, August 21st will be given a $1.015 dividend. This is a boost from Cogent Communications's previous quarterly dividend of $1.01. This represents a $4.06 annualized dividend and a yield of 10.7%. Cogent Communications's dividend payout ratio is -100.75%.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on CCOI. The Goldman Sachs Group decreased their price objective on shares of Cogent Communications from $71.00 to $62.00 and set a "neutral" rating for the company in a research report on Friday, May 9th. UBS Group dropped their price target on shares of Cogent Communications from $102.00 to $75.00 and set a "buy" rating on the stock in a research report on Friday, May 9th. Two research analysts have rated the stock with a sell rating, two have assigned a hold rating and five have issued a buy rating to the stock. According to MarketBeat, Cogent Communications currently has a consensus rating of "Hold" and a consensus target price of $75.75.

Insider Transactions at Cogent Communications

In other news, CFO Thaddeus Gerard Weed sold 4,900 shares of the stock in a transaction that occurred on Monday, June 9th. The shares were sold at an average price of $48.04, for a total value of $235,396.00. Following the transaction, the chief financial officer owned 98,000 shares in the company, valued at $4,707,920. This represents a 4.76% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Henry W. Kilmer sold 2,400 shares of the stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $47.95, for a total transaction of $115,080.00. Following the completion of the transaction, the vice president owned 38,600 shares in the company, valued at $1,850,870. This trade represents a 5.85% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 445,500 shares of company stock worth $21,285,069. 11.40% of the stock is owned by insiders.

Institutional Investors Weigh In On Cogent Communications

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. AlphaQuest LLC purchased a new stake in Cogent Communications during the 1st quarter valued at approximately $36,000. Farther Finance Advisors LLC grew its holdings in Cogent Communications by 297.8% during the 2nd quarter. Farther Finance Advisors LLC now owns 740 shares of the technology company's stock valued at $36,000 after buying an additional 554 shares in the last quarter. Atlantic Union Bankshares Corp purchased a new stake in Cogent Communications during the 2nd quarter valued at approximately $40,000. Byrne Asset Management LLC purchased a new stake in Cogent Communications during the 2nd quarter valued at approximately $41,000. Finally, Itau Unibanco Holding S.A. grew its holdings in Cogent Communications by 58.9% during the 4th quarter. Itau Unibanco Holding S.A. now owns 618 shares of the technology company's stock valued at $48,000 after buying an additional 229 shares in the last quarter. 92.45% of the stock is owned by hedge funds and other institutional investors.

Cogent Communications Stock Down 13.6%

The company has a current ratio of 1.49, a quick ratio of 1.49 and a debt-to-equity ratio of 13.89. The stock has a market capitalization of $1.87 billion, a P/E ratio of -9.63 and a beta of 0.68. The business has a 50-day moving average price of $48.28 and a 200 day moving average price of $58.55.

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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