Cogent Communications (NASDAQ:CCOI) Hits New 12-Month Low - What's Next?

Key Points

• Cogent Communications hit a new 52-week low, trading as low as $11.14, extending a sharp recent slide as the stock fell about 4.7% on the day.
• Analyst sentiment remains cautious: several firms cut price targets, and the stock currently carries a consensus Hold rating with a consensus target price of $24.90.
• The company’s latest results were mixed, as EPS beat expectations but revenue missed slightly and declined 3.2% year over year; insiders also recently sold shares, while the company paid a small quarterly dividend yielding about 0.7%.

Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Get Free Report) shares reached a new 52-week low on Friday . The company traded as low as $11.14 and last traded at $11.2050, with a volume of 178981 shares. The stock had previously closed at $11.71.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the stock. Citigroup dropped their price objective on shares of Cogent Communications from $22.00 to $20.00 and set a "neutral" rating for the company in a research note on Tuesday, May 19th. TD Cowen reiterated a "buy" rating on shares of Cogent Communications in a research report on Monday, June 22nd. JPMorgan Chase & Co. reissued a "neutral" rating and issued a $22.00 target price on shares of Cogent Communications in a research note on Friday, May 29th. Royal Bank Of Canada dropped their price target on shares of 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. Finally, UBS Group cut their price target on shares of Cogent Communications from $21.00 to $17.00 and set a "neutral" rating for the company in a research note on Tuesday, May 5th. Three equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $24.90.

Cogent Communications Stock Down 4.7%

The business has a 50-day simple moving average of $15.40 and a two-hundred day simple moving average of $19.63. The stock has a market capitalization of $558.89 million, a P/E ratio of -3.17 and a beta of 0.80.

Cogent Communications (NASDAQ:CCOI - Get Free Report) last issued its quarterly earnings data on Monday, May 4th. The technology company reported ($0.83) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($1.03) by $0.20. Cogent Communications had a negative return on equity of 842.48% and a negative net margin of 17.53%.The company had revenue of $239.19 million during the quarter, compared to analysts' expectations of $241.31 million. During the same period last year, the business earned ($1.09) earnings per share. The business's revenue was down 3.2% on a year-over-year basis. On average, sell-side analysts forecast that Cogent Communications Holdings, Inc. will post -4.25 earnings per share for the current year.

Cogent Communications Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 2nd. Investors of record on Monday, May 18th were given a dividend of $0.02 per share. The ex-dividend date was Monday, May 18th. This represents a $0.08 dividend on an annualized basis and a dividend yield of 0.7%. Cogent Communications's dividend payout ratio (DPR) is -2.25%.

Insider Activity

In other news, VP Henry W. Kilmer sold 2,400 shares of the firm's stock in a transaction that occurred on Monday, June 15th. The shares were 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 owned 38,600 shares of the company's stock, valued at approximately $656,586. This trade represents a 5.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Thaddeus Gerard Weed sold 4,850 shares of Cogent Communications 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 completion of the transaction, the chief financial officer owned 197,900 shares of the company's stock, valued at $3,322,741. This trade represents a 2.39% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 4.20% of the company's stock.

Institutional Investors Weigh In On Cogent Communications

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

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.

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