Cogent Communications (NASDAQ:CCOI) Posts Earnings Results, Beats Expectations By $0.20 EPS

Key Points

• Cogent reported EPS of ($0.83), beating estimates of ($1.03) by $0.20, but revenue fell 3.2% year‑over‑year and the company remains unprofitable with a negative net margin (18.67%) and a deeply negative ROE (842.48%).
• Shares opened at $23.16 with a market cap of $1.16 billion, a 1‑year range of $15.96–$56.88 and a quarterly dividend of $0.02 (0.3% yield).
• Insiders have sold shares recently (12,756 shares in the last 90 days) while institutions own 92.45% of the stock; analysts' consensus is a "Hold" with a $26.67 target after several firms trimmed price targets.

Cogent Communications (NASDAQ:CCOI - Get Free Report) issued its quarterly earnings results on Monday. The technology company reported ($0.83) earnings per share for the quarter, topping analysts' consensus estimates of ($1.03) by $0.20, Briefing.com reports. Cogent Communications had a negative net margin of 18.67% and a negative return on equity of 842.48%. The firm's revenue was down 3.2% compared to the same quarter last year. During the same period in the prior year, the company posted ($1.09) EPS.

Cogent Communications Stock Performance

Cogent Communications stock opened at $23.16 on Monday. The firm has a 50 day simple moving average of $20.75 and a 200 day simple moving average of $24.01. Cogent Communications has a 1-year low of $15.96 and a 1-year high of $56.88. The firm has a market capitalization of $1.16 billion, a price-to-earnings ratio of -6.08 and a beta of 0.85.

Cogent Communications Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, March 20th. Investors of record on Friday, March 6th were paid a $0.02 dividend. This represents a $0.08 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date was Friday, March 6th. Cogent Communications's payout ratio is currently -2.10%.

Insider Buying and Selling

In related news, VP Henry W. Kilmer sold 2,400 shares of the business's stock in a transaction on Friday, March 6th. The stock was sold at an average price of $23.35, for a total transaction of $56,040.00. Following the sale, the vice president directly owned 41,000 shares in the company, valued at approximately $957,350. The trade was a 5.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Sheryl Lynn Kennedy sold 3,300 shares of the stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $22.99, for a total value of $75,867.00. Following the sale, the director directly owned 10,100 shares in the company, valued at $232,199. This trade represents a 24.63% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 12,756 shares of company stock worth $292,467. Insiders own 4.20% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Turtle Creek Asset Management Inc. lifted its holdings in shares of 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 buying an additional 1,811,222 shares in the last quarter. State Street Corp grew its stake in Cogent Communications by 6.8% during the fourth quarter. State Street Corp now owns 2,070,132 shares of the technology company's stock valued at $44,632,000 after acquiring an additional 132,454 shares in the last quarter. Park West Asset Management LLC bought a new stake in Cogent Communications during the 4th quarter worth approximately $30,380,000. Invesco Ltd. increased its holdings in Cogent Communications by 39.8% during the 3rd quarter. Invesco Ltd. now owns 1,402,612 shares of the technology company's stock worth $53,790,000 after acquiring an additional 399,339 shares during the period. Finally, Geode Capital Management LLC lifted its stake in Cogent Communications by 2.8% in the 4th quarter. Geode Capital Management LLC now owns 1,179,231 shares of the technology company's stock worth $25,429,000 after purchasing an additional 31,724 shares in the last quarter. Hedge funds and other institutional investors own 92.45% of the company's stock.

Wall Street Analyst Weigh In

CCOI has been the topic of several research reports. Weiss Ratings lowered shares of Cogent Communications from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Wednesday, April 22nd. Wall Street Zen upgraded shares of Cogent Communications from a "strong sell" rating to a "sell" rating in a research note on Sunday, April 26th. Oppenheimer lowered their price target on shares of Cogent Communications from $40.00 to $30.00 and set an "outperform" rating on the stock in a report on Monday, February 23rd. Royal Bank Of Canada dropped their price objective on Cogent Communications from $23.00 to $22.00 and set a "sector perform" rating on the stock in a research note on Wednesday, March 18th. Finally, Wells Fargo & Company decreased their target price on Cogent Communications from $27.00 to $23.00 and set an "equal weight" rating for the company in a research report on Thursday, March 5th. Three analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $26.67.

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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