Cogent Communications (NASDAQ:CCOI) Reaches New 52-Week Low - Here's What Happened

Key Points

• Cogent Communications hit a new 52-week low, trading as low as $14.22 amid relatively light volume, underscoring continued pressure on the stock.
• Several analysts have cut price targets on the company, and the stock now carries an average Hold rating with a consensus target of $24.90, above the current price but below prior estimates.
• The company recently reported a smaller-than-expected loss in quarterly EPS, but revenue declined 3.2% year over year; insider selling and a very low dividend yield also added to the cautious sentiment.

Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Get Free Report) hit a new 52-week low during mid-day trading on Thursday . The stock traded as low as $14.22 and last traded at $14.3530, with a volume of 148003 shares trading hands. The stock had previously closed at $14.61.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the company. Oppenheimer lowered their target price on Cogent Communications from $40.00 to $30.00 and set an "outperform" rating for the company in a research note on Monday, February 23rd. TD Cowen decreased their price objective on Cogent Communications from $40.00 to $34.00 and set a "buy" rating for the company in a research note on Tuesday, May 5th. JPMorgan Chase & Co. restated a "neutral" rating and set a $22.00 target price on shares of Cogent Communications in a research note on Friday, May 29th. UBS Group reduced their target price on shares of Cogent Communications from $21.00 to $17.00 and set a "neutral" rating on the stock in a report on Tuesday, May 5th. Finally, KeyCorp decreased their price target on shares of Cogent Communications from $30.00 to $25.00 and set an "overweight" rating for the company in a research note on Monday, February 23rd. Three equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Cogent Communications presently has an average rating of "Hold" and an average target price of $24.90.

Cogent Communications Trading Down 0.1%

The stock has a fifty day simple moving average of $19.10 and a 200-day simple moving average of $20.90. The company has a market capitalization of $731.14 million, a PE ratio of -4.11 and a beta of 0.77.

Cogent Communications (NASDAQ:CCOI - Get Free Report) last released its quarterly earnings data on Monday, May 4th. The technology company reported ($0.83) EPS for the quarter, beating analysts' consensus estimates of ($1.03) by $0.20. The business had revenue of $239.19 million for the quarter, compared to the consensus estimate of $241.31 million. Cogent Communications had a negative return on equity of 842.48% and a negative net margin of 17.53%.The business's revenue for the quarter was down 3.2% on a year-over-year basis. During the same quarter in the prior year, the business posted ($1.09) EPS. As a group, equities research analysts predict that Cogent Communications Holdings, Inc. will post -4.25 EPS for the current year.

Cogent Communications Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 2nd. Investors of record on Monday, May 18th were paid a $0.02 dividend. The ex-dividend date was Monday, May 18th. This represents a $0.08 dividend on an annualized basis and a dividend yield of 0.5%. Cogent Communications's payout ratio is -2.25%.

Insider Buying and Selling at Cogent Communications

In related news, CFO Thaddeus Gerard Weed sold 4,850 shares of the stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $16.79, for a total transaction 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 represents a 2.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, VP Henry W. Kilmer sold 2,400 shares of Cogent Communications stock in a transaction dated 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. This trade represents a 5.85% decrease in their position. The SEC filing for this sale provides additional information. 4.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Cogent Communications

Institutional investors have recently bought and sold shares of the stock. Federation des caisses Desjardins du Quebec raised its position in shares of Cogent Communications by 17.5% in the 4th quarter. Federation des caisses Desjardins du Quebec now owns 2,850 shares of the technology company's stock worth $61,000 after buying an additional 425 shares during the period. Empowered Funds LLC grew its holdings 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 purchasing an additional 510 shares during the period. Quarry LP purchased a new stake in Cogent Communications during the third quarter worth approximately $27,000. Farther Finance Advisors LLC raised its stake in shares of Cogent Communications by 56.6% during the fourth quarter. Farther Finance Advisors LLC now owns 2,092 shares of the technology company's stock valued at $45,000 after purchasing an additional 756 shares during the period. Finally, Parallel Advisors LLC boosted its stake in Cogent Communications by 208.6% during the 1st quarter. Parallel Advisors LLC now owns 1,432 shares of the technology company's stock valued at $27,000 after acquiring an additional 968 shares during the last quarter. 92.45% of the stock is currently owned by hedge funds and other institutional investors.

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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