265,500 Shares in Cogent Communications Holdings, Inc. $CCOI Purchased by FourWorld Capital Management LLC

Key Points

• FourWorld Capital Management purchased 265,500 Cogent Communications shares worth approximately $5.0 million, giving it a 0.53% stake and making CCOI its sixth-largest holding.
• Cogent shares opened at $11.87, near their 12-month low of $10.93, amid class-action lawsuits alleging undisclosed demand and backlog issues. The company reported a quarterly revenue decline of 3.2% year over year, despite beating EPS expectations.
• Analysts maintain a generally neutral outlook, with an average “Hold” rating and a $24.90 target price, while several firms recently lowered their targets. Cogent also pays a quarterly dividend of $0.02 per share, yielding about 0.7%.

FourWorld Capital Management LLC purchased a new stake in shares of Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 265,500 shares of the technology company's stock, valued at approximately $5,002,000. Cogent Communications accounts for 2.6% of FourWorld Capital Management LLC's investment portfolio, making the stock its 6th largest holding. FourWorld Capital Management LLC owned about 0.53% of Cogent Communications at the end of the most recent reporting period.

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

Cogent Communications News Summary

Here are the key news stories impacting Cogent Communications this week:

• Positive Sentiment: Shares could eventually benefit if the lawsuits are dismissed or resolved without major financial impact, reducing legal overhang. CCOI Investors Have Opportunity to Lead Cogent Communications Holdings, Inc. Securities Fraud Lawsuit with the Schall Law Firm
• Neutral Sentiment: Analysts’ FY2028 earnings forecasts were also mentioned, but no specific estimate details were provided in the available snippet, so the stock impact is unclear. Equities Analysts Offer Predictions for CCOI FY2028 Earnings
• Negative Sentiment: Multiple law firms announced or reminded investors about class action lawsuits covering Cogent shares bought between Feb. 29, 2024 and May 1-2, 2026, increasing legal uncertainty and sentiment pressure on the stock. Rosen Law Firm Urges Cogent Communications Holdings, Inc. NASDAQ: CCOI Stockholders with Large Losses to Contact the Firm for Information About Their Rights
• Negative Sentiment: Additional alerts repeated allegations of securities fraud tied to alleged undisclosed demand and backlog problems, suggesting the prior stock drop may have been driven by weaker-than-expected business trends and disclosure concerns. Cogent Communications Holdings Securities Fraud Class Action Result of Undisclosed Demand and Backlog Issues and approximately 29% Stock Decline
• Negative Sentiment: Several other firms, including Robbins LLP, Kaplan Fox, BFA Law, and KSF, issued similar class-action notices and lead-plaintiff reminders, reinforcing the negative news flow around CCOI. Investor Notice: Robbins LLP Informs Investors of the Cogent Communications Holdings, Inc. Class Action Lawsuit

Cogent Communications Stock Performance

Shares of Cogent Communications stock opened at $11.87 on Monday. Cogent Communications Holdings, Inc. has a 12 month low of $10.93 and a 12 month high of $49.38. The firm has a market capitalization of $594.45 million, a P/E ratio of -3.34 and a beta of 0.80. The business has a fifty day simple moving average of $14.93 and a two-hundred day simple moving average of $19.26.

Cogent Communications (NASDAQ:CCOI - Get Free Report) last issued its quarterly earnings results on Monday, May 4th. The technology company reported ($0.83) earnings per share (EPS) for the quarter, topping 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 period last year, the business earned ($1.09) EPS. Cogent Communications's quarterly revenue was down 3.2% compared to the same quarter last year. Analysts predict that Cogent Communications Holdings, Inc. will post -4.25 earnings per share for the current year.

Cogent Communications Announces Dividend

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

Wall Street Analysts Forecast Growth

Several research analysts have commented on the stock. Citigroup decreased their price objective on shares of Cogent Communications from $22.00 to $20.00 and set a "neutral" rating for the company in a report on Tuesday, May 19th. JPMorgan Chase & Co. reaffirmed 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 price target on shares of Cogent Communications from $21.00 to $17.00 and set a "neutral" rating on the stock in a research report on Tuesday, May 5th. Royal Bank Of Canada lowered their price objective on shares of Cogent Communications from $22.00 to $18.00 and set a "sector perform" rating for the company in a report on Wednesday, May 6th. Finally, Weiss Ratings cut Cogent Communications from a "sell (d+)" rating to a "sell (d)" rating in a research report on Wednesday, May 20th. Three analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and an average target price of $24.90.

Insider Buying and Selling

In related news, VP Henry W. Kilmer sold 2,400 shares of the firm's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $17.01, for a total transaction of $40,824.00. Following the completion of the transaction, 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Thaddeus Gerard Weed sold 4,850 shares of Cogent Communications stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $16.79, for a total value of $81,431.50. Following the transaction, the chief financial officer 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 SEC filing for this sale provides additional information. 4.20% of the stock is currently owned by company insiders.

Cogent Communications 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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