Bank of New York Mellon Corp Invests $3.69 Million in Cogent Communications Holdings, Inc. $CCOI

Key Points

• Bank of New York Mellon initiated a 265,490-share position in Cogent Communications, valued at approximately $3.69 million and representing about 0.53% of the company. Institutional investors collectively own 92.45% of CCOI.
• Cogent reported quarterly EPS of $1.38, exceeding expectations, but revenue fell 4.4% year over year to $235.56 million and the company continued to post negative net margins. The stock opened at $10.05, close to its 52-week low of $8.88, and pays a $0.02 quarterly dividend.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $19.55. Securities-fraud allegations, a pending class-action lead-plaintiff deadline, and recent insider selling continue to weigh on investor sentiment.

Bank of New York Mellon Corp bought a new position in shares of Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 265,490 shares of the technology company's stock, valued at approximately $3,685,000. Bank of New York Mellon Corp owned approximately 0.53% of Cogent Communications as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently bought and sold shares of the company. Vanguard Group Inc. grew its stake in Cogent Communications by 4.1% during the fourth quarter. Vanguard Group Inc. now owns 5,580,271 shares of the technology company's stock worth $120,311,000 after buying an additional 217,450 shares during the period. Turtle Creek Asset Management Inc. increased its position in shares of Cogent Communications by 64.9% in the third quarter. Turtle Creek Asset Management Inc. now owns 4,603,933 shares of the technology company's stock worth $176,561,000 after acquiring an additional 1,811,222 shares in the last quarter. State Street Corp raised its stake in shares of Cogent Communications by 6.8% in the 4th quarter. State Street Corp now owns 2,070,132 shares of the technology company's stock valued at $44,632,000 after acquiring an additional 132,454 shares during the period. Park West Asset Management LLC purchased a new position in shares of Cogent Communications in the 4th quarter valued at $30,380,000. Finally, Invesco Ltd. lifted its holdings in shares of Cogent Communications by 39.8% during the 3rd quarter. Invesco Ltd. now owns 1,402,612 shares of the technology company's stock valued at $53,790,000 after acquiring an additional 399,339 shares in the last quarter. Hedge funds and other institutional investors own 92.45% of the company's stock.

Cogent Communications Stock Performance

NASDAQ CCOI opened at $10.05 on Monday. The stock has a market cap of $514.76 million, a P/E ratio of -10.47 and a beta of 0.77. The company's fifty day simple moving average is $11.55 and its 200-day simple moving average is $16.47. Cogent Communications Holdings, Inc. has a 52 week low of $8.88 and a 52 week high of $45.69.

Cogent Communications (NASDAQ:CCOI - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The technology company reported $1.38 earnings per share for the quarter, beating analysts' consensus estimates of ($1.00) by $2.38. Cogent Communications had a negative net margin of 4.73% and a negative return on equity of 842.48%. The business had revenue of $235.56 million during the quarter, compared to analyst estimates of $239.55 million. During the same period last year, the business earned ($1.21) EPS. The business's revenue was down 4.4% on a year-over-year basis. On average, research analysts expect that Cogent Communications Holdings, Inc. will post -3.01 EPS for the current fiscal year.

Cogent Communications Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, September 4th. Stockholders of record on Friday, August 21st were paid a dividend of $0.02 per share. The ex-dividend date was Friday, August 21st. This represents a $0.08 annualized dividend and a dividend yield of 0.8%. Cogent Communications's dividend payout ratio (DPR) is currently -8.33%.

Cogent Communications News Roundup

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

• Positive Sentiment: Potential investor recovery: Shareholders who purchased CCOI securities between February 29, 2024, and May 1, 2026, may seek appointment as lead plaintiff by September 21, 2026. Any financial recovery would depend on the outcome of the litigation. Robbins LLP CCOI class action notice
• Neutral Sentiment: September 21 deadline highlighted: Kaplan Fox, Hagens Berman, Faruqi & Faruqi and other firms reiterated the lead-plaintiff deadline. The announcements largely repeat the same lawsuit rather than represent new operating developments. Kaplan Fox CCOI deadline announcement
• Negative Sentiment: Securities-fraud allegations pressure sentiment: The complaint alleges Cogent and certain executives made misleading disclosures regarding optical-wavelength demand, backlog conversion, margin-loan risks, dividends and pledged-share foreclosures. Law firms also linked the allegations to an approximately 29% share-price decline. The claims remain unproven, but potential legal costs, reputational damage and uncertainty around prior disclosures are negative catalysts. Hagens Berman Cogent securities fraud notice
• Negative Sentiment: CFO insider sale: CFO Thaddeus Weed sold 4,850 shares for approximately $45,445, reducing his holdings by 2.45%. The transaction is relatively small compared with his remaining stake, but it may weigh on investor confidence amid the litigation headlines. Cogent CFO SEC Form 4 filing

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on CCOI shares. TD Cowen decreased their price target on shares of Cogent Communications from $34.00 to $30.00 and set a "buy" rating for the company in a research report on Friday, August 7th. KeyCorp cut their price objective on Cogent Communications from $25.00 to $15.00 and set an "overweight" rating on the stock in a research report on Friday, August 7th. JPMorgan Chase & Co. restated an "underweight" rating and set a $9.00 price objective (down from $22.00) on shares of Cogent Communications in a research note on Wednesday, August 19th. Citigroup decreased their target price on Cogent Communications from $20.00 to $11.50 and set a "neutral" rating for the company in a research report on Thursday, August 13th. Finally, Wall Street Zen upgraded Cogent Communications from a "sell" rating to a "hold" rating in a research note on Saturday, August 15th. Three research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Cogent Communications has a consensus rating of "Hold" and an average target price of $19.55.

Insider Activity

In other Cogent Communications news, CFO Thaddeus Weed sold 4,850 shares of the firm's stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $9.37, for a total transaction of $45,444.50. Following the completion of the sale, the chief financial officer owned 193,050 shares in the company, valued at $1,808,878.50. This trade represents a 2.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Henry W. Kilmer sold 2,400 shares of Cogent Communications stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $17.01, for a total value of $40,824.00. Following the sale, the vice president owned 38,600 shares in the company, valued at $656,586. This represents a 5.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 12,100 shares of company stock valued at $167,700 over the last 90 days. Insiders own 4.20% of the company's stock.

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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