Cogent Communications (NASDAQ:CCOI) Raised to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Cogent Communications from “strong sell” to “sell,” adding to a generally cautious analyst backdrop. The stock’s consensus rating remains Hold, with a consensus target price of $24.90.
• Cogent shares were trading around $13.41, near their 52-week low of $12.84 and well below the 50-day and 200-day moving averages. The company also has a negative earnings profile, with the latest quarter showing a loss despite beating EPS expectations.
• There was recent insider selling, including stock sales by the CFO and a vice president in mid-June. At the same time, institutional ownership remains high, with hedge funds and other institutions holding about 92.45% of the shares.

Cogent Communications (NASDAQ:CCOI - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "strong sell" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

CCOI has been the topic of several other research reports. Royal Bank Of Canada decreased their price target on shares of Cogent Communications from $22.00 to $18.00 and set a "sector perform" rating on the stock in a research report on Wednesday, May 6th. Citigroup cut their price objective on Cogent Communications from $22.00 to $20.00 and set a "neutral" rating for the company in a research report on Tuesday, May 19th. UBS Group decreased their target price on Cogent Communications from $21.00 to $17.00 and set a "neutral" rating on the stock in a report on Tuesday, May 5th. TD Cowen reaffirmed a "buy" rating on shares of Cogent Communications in a research report on Monday. Finally, JPMorgan Chase & Co. reaffirmed a "neutral" rating and set a $22.00 target price on shares of Cogent Communications in a report on Friday, May 29th. Three 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. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $24.90.

Cogent Communications Trading Up 1.9%

Shares of Cogent Communications stock opened at $13.41 on Friday. The company's 50-day moving average price is $18.09 and its two-hundred day moving average price is $20.62. Cogent Communications has a 52 week low of $12.84 and a 52 week high of $54.37. The stock has a market cap of $671.57 million, a PE ratio of -3.78 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) earnings per share for the quarter, beating the consensus estimate of ($1.03) by $0.20. Cogent Communications had a negative net margin of 17.53% and a negative return on equity of 842.48%. The company had revenue of $239.19 million during the quarter, compared to analyst estimates of $241.31 million. During the same quarter last year, the firm posted ($1.09) EPS. The business's revenue for the quarter was down 3.2% on a year-over-year basis. On average, equities analysts predict that Cogent Communications will post -4.25 EPS for the current fiscal year.

Insider Activity at Cogent Communications

In other Cogent Communications news, CFO Thaddeus Gerard Weed sold 4,850 shares of the business's stock in a transaction 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 sale, the chief financial officer directly owned 197,900 shares of the company's stock, valued at $3,322,741. The trade was a 2.39% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 sale, the vice president owned 38,600 shares of the company's stock, valued at $656,586. The trade was a 5.85% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 4.20% of the company's stock.

Institutional Investors Weigh In On Cogent Communications

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CCOI. AQR Capital Management LLC purchased a new position in shares of Cogent Communications during the 1st quarter valued at $202,000. Goldman Sachs Group Inc. boosted its position 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 valued at $29,215,000 after purchasing an additional 100,969 shares during the last quarter. Empowered Funds LLC boosted its position in Cogent Communications by 10.3% during the first quarter. Empowered Funds LLC now owns 5,466 shares of the technology company's stock valued at $335,000 after purchasing an additional 510 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Cogent Communications by 23.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 161,791 shares of the technology company's stock valued at $9,919,000 after purchasing an additional 30,630 shares in the last quarter. Finally, Strs Ohio acquired a new position in Cogent Communications in the 1st quarter worth about $104,000. Hedge funds and other institutional investors own 92.45% of the company's stock.

About Cogent Communications

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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