Cogent Communications (NASDAQ:CCOI) Sees Strong Trading Volume After Dividend Announcement

Key Points

• Cogent Communications announced a dividend of $1.015, to be paid on September 5th, resulting in a 12.8% annual yield and a change from the previous dividend of $1.01.
• Despite strong trading volume, the company's stock recently traded down to $31.84 from a previous close of $35.34, as analysts set varying price targets ranging from $40.00 to $75.00.
• The company reported a negative earnings per share of ($1.21) for the last quarter, missing analysts' expectations, while its quarterly revenue of $246.25 million was down by 5.4% compared to the previous year.

Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Get Free Report) shares saw strong trading volume on Friday following a dividend announcement from the company. 763,935 shares changed hands during trading, an increase of 22% from the previous session's volume of 624,121 shares.The stock last traded at $31.84 and had previously closed at $35.34.The newly announced dividend which will be paid on Friday, September 5th. Shareholders of record on Thursday, August 21st will be given a $1.015 dividend. This represents a $4.06 dividend on an annualized basis and a yield of 12.8%. This is a positive change from Cogent Communications's previous quarterly dividend of $1.01. Cogent Communications's dividend payout ratio (DPR) is currently -100.75%.

Wall Street Analysts Forecast Growth

CCOI has been the subject of a number of analyst reports. Royal Bank Of Canada reissued a "sector perform" rating and set a $40.00 price objective on shares of Cogent Communications in a research report on Friday. UBS Group lowered their price target on shares of Cogent Communications from $102.00 to $75.00 and set a "buy" rating for the company in a report on Friday, May 9th. Finally, The Goldman Sachs Group reduced their price objective on shares of Cogent Communications from $71.00 to $62.00 and set a "neutral" rating on the stock in a report on Friday, May 9th. Two investment analysts have rated the stock with a sell rating, three have given a hold rating and four have issued a buy rating to the company's stock. Based on data from MarketBeat.com, Cogent Communications presently has an average rating of "Hold" and a consensus price target of $71.50.

Cogent Communications Stock Performance

The stock's 50 day simple moving average is $48.04 and its two-hundred day simple moving average is $58.29. The company has a market cap of $1.57 billion, a PE ratio of -7.98 and a beta of 0.68. The company has a quick ratio of 1.49, a current ratio of 1.49 and a debt-to-equity ratio of 13.89.

Cogent Communications (NASDAQ:CCOI - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The technology company reported ($1.21) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.93) by ($0.28). Cogent Communications had a negative return on equity of 70.29% and a negative net margin of 18.76%. The business had revenue of $246.25 million during the quarter, compared to the consensus estimate of $247.79 million. During the same quarter in the previous year, the business posted ($0.68) earnings per share. The company's quarterly revenue was down 5.4% compared to the same quarter last year. As a group, research analysts anticipate that Cogent Communications Holdings, Inc. will post -4.55 earnings per share for the current year.

Cogent Communications declared that its board has approved a share buyback plan on Thursday, August 7th that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the technology company to buy up to 4.6% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its shares are undervalued.

Insider Transactions at Cogent Communications

In other news, CFO Thaddeus Gerard Weed sold 4,900 shares of the firm's stock in a transaction dated Monday, June 9th. The shares were sold at an average price of $48.04, for a total transaction of $235,396.00. Following the completion of the transaction, the chief financial officer owned 98,000 shares in the company, valued at approximately $4,707,920. This trade represents a 4.76% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CRO James Bubeck sold 2,000 shares of the stock in a transaction on Wednesday, June 4th. The shares were sold at an average price of $47.50, for a total value of $95,000.00. Following the sale, the executive owned 55,142 shares of the company's stock, valued at $2,619,245. This trade represents a 3.50% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 445,500 shares of company stock valued at $21,285,069 over the last three months. 11.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in CCOI. AlphaQuest LLC acquired a new position in shares of Cogent Communications in the 1st quarter valued at about $36,000. Farther Finance Advisors LLC grew its holdings in Cogent Communications by 297.8% in the 2nd quarter. Farther Finance Advisors LLC now owns 740 shares of the technology company's stock valued at $36,000 after buying an additional 554 shares during the last quarter. Atlantic Union Bankshares Corp bought a new stake in Cogent Communications in the 2nd quarter valued at $40,000. Byrne Asset Management LLC acquired a new stake in shares of Cogent Communications during the 2nd quarter worth approximately $41,000. Finally, Itau Unibanco Holding S.A. increased its holdings in Cogent Communications by 58.9% during the 4th quarter. Itau Unibanco Holding S.A. now owns 618 shares of the technology company's stock valued at $48,000 after purchasing an additional 229 shares in the last quarter. 92.45% of the stock is currently owned by institutional investors and hedge funds.

About Cogent Communications

Cogent Communications Holdings, Inc, through its subsidiaries, provides high-speed Internet access, private network, and data center colocation space services in North America, Europe, Oceania, South America, and Africa. The company offers on-net Internet access and private network services to law firms, financial services firms, and advertising and marketing firms, as well as heath care providers, educational institutions and other professional services businesses, other Internet service providers, telephone companies, cable television companies, web hosting companies, media service providers, mobile phone operators, content delivery network companies, and commercial content and application service providers.

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