Cogent Communications (NASDAQ:CCOI) Trading Down 5.9% - Here's Why

Key Points

• Cogent Communications shares fell 5.9% on Monday, trading as low as $12.36 and closing near $12.22, well below both its 50-day and 200-day moving averages.
• Recent analyst sentiment has been mixed to cautious: several firms cut price targets or downgraded the stock, and the consensus rating remains Hold with an average target price of $24.90.
• The company recently reported a smaller-than-expected quarterly loss, but revenue still declined 3.2% year over year, and insiders have also been selling shares.

Shares of Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Get Free Report) were down 5.9% on Monday . The stock traded as low as $12.36 and last traded at $12.2220. 888,279 shares changed hands during trading, a decline of 28% from the average session volume of 1,239,852 shares. The stock had previously closed at $12.99.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the company. Weiss Ratings downgraded Cogent Communications from a "sell (d+)" rating to a "sell (d)" rating in a report on Wednesday, May 20th. Citigroup decreased 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. Wall Street Zen raised Cogent Communications from a "strong sell" rating to a "sell" rating in a research note on Saturday, June 27th. TD Cowen restated a "buy" rating on shares of Cogent Communications in a report on Monday, June 22nd. Finally, UBS Group reduced their price target on shares of Cogent Communications from $21.00 to $17.00 and set a "neutral" rating for the company in a report on Tuesday, May 5th. Three investment 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's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $24.90.

Cogent Communications Trading Down 5.9%

The company has a market capitalization of $612.08 million, a P/E ratio of -3.44 and a beta of 0.80. The firm's 50 day moving average price is $17.07 and its two-hundred day moving average price is $20.27.

Cogent Communications (NASDAQ:CCOI - Get Free Report) last released its earnings results on Monday, May 4th. The technology company reported ($0.83) earnings per share for the quarter, beating analysts' consensus estimates 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 business had revenue of $239.19 million during the quarter, compared to the consensus estimate of $241.31 million. During the same quarter last year, the firm earned ($1.09) earnings per share. The firm's revenue for the quarter was down 3.2% compared to the same quarter last year. Analysts anticipate that Cogent Communications Holdings, Inc. will post -4.25 earnings per share for the current fiscal year.

Cogent Communications Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 2nd. Stockholders of record on Monday, May 18th were paid a dividend of $0.02 per share. This represents a $0.08 annualized dividend and a dividend yield of 0.7%. The ex-dividend date was Monday, May 18th. Cogent Communications's payout ratio is currently -2.25%.

Insider Buying and Selling at Cogent Communications

In related news, CFO Thaddeus Gerard Weed sold 4,850 shares of Cogent Communications stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $16.79, for a total transaction of $81,431.50. Following the completion of the sale, the chief financial officer directly owned 197,900 shares of the company's stock, valued at approximately $3,322,741. This trade represents a 2.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Henry W. Kilmer sold 2,400 shares of the business's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $17.01, for a total transaction of $40,824.00. Following the completion of the sale, the vice president directly owned 38,600 shares of the company's stock, valued at approximately $656,586. The trade was a 5.85% decrease in their position. The SEC filing for this sale provides additional information. 4.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Cogent Communications

Large investors have recently bought and sold shares of the company. Parallel Advisors LLC raised its position in shares of Cogent Communications by 208.6% in the 1st quarter. Parallel Advisors LLC now owns 1,432 shares of the technology company's stock valued at $27,000 after buying an additional 968 shares in the last quarter. Quarry LP bought a new position in Cogent Communications in the third quarter valued at approximately $27,000. Caitong International Asset Management Co. Ltd acquired a new position in Cogent Communications during the fourth quarter valued at approximately $28,000. Hantz Financial Services Inc. lifted its stake in Cogent Communications by 313.9% during the fourth quarter. Hantz Financial Services Inc. now owns 1,486 shares of the technology company's stock worth $32,000 after purchasing an additional 1,127 shares during the last quarter. Finally, Kestra Advisory Services LLC bought a new stake in Cogent Communications during the fourth quarter worth $43,000. 92.45% of the stock is currently owned by institutional investors and hedge funds.

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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