Cogent Communications (NASDAQ:CCOI) Hits New 52-Week Low - Time to Sell?

Key Points

• Cogent Communications hit a new 52-week low, trading as low as $12.33 after closing at $13.41 the prior session, underscoring recent weakness in the stock.
• Analysts have turned cautious: several firms recently cut price targets, and the overall consensus rating remains Hold with an average target price of $24.90.
• The company’s latest earnings showed a smaller-than-expected loss per share, but revenue declined 3.2% year over year and analysts still expect a full-year loss, while insiders have also been selling shares.

Shares of Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Get Free Report) reached a new 52-week low on Tuesday . The company traded as low as $12.33 and last traded at $13.14, with a volume of 1972120 shares. The stock had previously closed at $13.41.

Wall Street Analyst Weigh In

CCOI has been the subject of several recent research reports. Royal Bank Of Canada cut their price target on Cogent Communications from $22.00 to $18.00 and set a "sector perform" rating for the company in a report on Wednesday, May 6th. UBS Group decreased their price objective on Cogent Communications from $21.00 to $17.00 and set a "neutral" rating on the stock in a report on Tuesday, May 5th. Wall Street Zen upgraded Cogent Communications from a "strong sell" rating to a "sell" rating in a research report on Saturday. TD Cowen reaffirmed a "buy" rating on shares of Cogent Communications in a research report on Monday, June 22nd. Finally, Wells Fargo & Company decreased their price target on shares of Cogent Communications from $23.00 to $18.00 and set an "equal weight" rating on the stock in a research note on Thursday, May 7th. Three investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $24.90.

Cogent Communications Stock Performance

The stock has a 50-day moving average of $17.89 and a 200 day moving average of $20.55. The firm has a market capitalization of $658.05 million, a P/E ratio of -3.70 and a beta of 0.77.

Cogent Communications (NASDAQ:CCOI - Get Free Report) last posted its quarterly earnings data on Monday, May 4th. The technology company reported ($0.83) EPS for the quarter, topping 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 for the quarter, compared to analyst estimates of $241.31 million. During the same quarter in the previous year, the firm earned ($1.09) earnings per share. The business's revenue was down 3.2% on a year-over-year basis. On average, equities analysts predict that Cogent Communications Holdings, Inc. will post -4.25 EPS for the current year.

Cogent Communications Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 2nd. Investors of record on Monday, May 18th were given a $0.02 dividend. This represents a $0.08 annualized dividend and a yield of 0.6%. The ex-dividend date was Monday, May 18th. Cogent Communications's payout ratio is -2.25%.

Insider Buying and Selling at Cogent Communications

In other Cogent Communications news, CFO Thaddeus Gerard Weed sold 4,850 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $16.79, for a total value of $81,431.50. Following the transaction, the chief financial officer directly owned 197,900 shares in the company, valued at approximately $3,322,741. This trade represents a 2.39% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Henry W. Kilmer sold 2,400 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $17.01, for a total value of $40,824.00. Following the completion of the transaction, the vice president owned 38,600 shares in the company, valued at $656,586. The trade was a 5.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 4.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Cogent Communications

Institutional investors and hedge funds have recently modified their holdings of the business. AQR Capital Management LLC bought a new stake in Cogent Communications in the first quarter valued at about $202,000. Goldman Sachs Group Inc. boosted its holdings in Cogent Communications by 26.9% during the first quarter. Goldman Sachs Group Inc. now owns 476,513 shares of the technology company's stock worth $29,215,000 after buying an additional 100,969 shares during the last quarter. Empowered Funds LLC grew its position in shares of Cogent Communications by 10.3% during the 1st quarter. Empowered Funds LLC now owns 5,466 shares of the technology company's stock worth $335,000 after buying an additional 510 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of Cogent Communications by 23.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 161,791 shares of the technology company's stock worth $9,919,000 after buying an additional 30,630 shares during the period. Finally, Strs Ohio bought a new stake in shares of Cogent Communications in the 1st quarter valued at about $104,000. 92.45% of the stock is 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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