Cogent Communications Holdings, Inc. $CCOI Shares Acquired by Herald Investment Management Ltd

Key Points

• Herald Investment Management Ltd increased its holdings in Cogent Communications by 3.5%, owning approximately 207,600 shares worth about $10 million, making it the 18th largest holding in their portfolio.
• The company's quarterly earnings showed a loss of $1.21 per share, missing estimates and reflecting a 5.4% revenue decline year-over-year.
• Cogent Communications has initiated a $100 million share repurchase plan, signaling the board’s belief that the stock is undervalued.

Herald Investment Management Ltd grew its holdings in shares of Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Free Report) by 3.5% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 207,600 shares of the technology company's stock after purchasing an additional 7,000 shares during the period. Cogent Communications makes up about 1.5% of Herald Investment Management Ltd's portfolio, making the stock its 18th biggest holding. Herald Investment Management Ltd owned about 0.42% of Cogent Communications worth $10,008,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. EdgePoint Investment Group Inc. raised its stake in Cogent Communications by 30.4% in the first quarter. EdgePoint Investment Group Inc. now owns 2,012,297 shares of the technology company's stock valued at $123,374,000 after buying an additional 469,028 shares during the last quarter. Reaves W H & Co. Inc. grew its stake in shares of Cogent Communications by 15.7% during the first quarter. Reaves W H & Co. Inc. now owns 808,061 shares of the technology company's stock worth $49,542,000 after acquiring an additional 109,543 shares during the last quarter. Westwood Holdings Group Inc. increased its holdings in shares of Cogent Communications by 15.3% during the first quarter. Westwood Holdings Group Inc. now owns 673,921 shares of the technology company's stock valued at $41,318,000 after acquiring an additional 89,536 shares in the last quarter. Senator Investment Group LP raised its position in shares of Cogent Communications by 0.5% in the 1st quarter. Senator Investment Group LP now owns 586,474 shares of the technology company's stock valued at $35,957,000 after purchasing an additional 2,834 shares during the last quarter. Finally, Invesco Ltd. boosted its stake in Cogent Communications by 5.6% in the 1st quarter. Invesco Ltd. now owns 544,575 shares of the technology company's stock worth $33,388,000 after purchasing an additional 28,934 shares in the last quarter. 92.45% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Cogent Communications

In related news, VP Henry W. Kilmer sold 2,400 shares of the business's stock in a transaction dated Friday, September 5th. The shares were sold at an average price of $36.99, for a total transaction of $88,776.00. Following the transaction, the vice president directly owned 36,200 shares in the company, valued at approximately $1,339,038. The trade was a 6.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Sheryl Lynn Kennedy sold 2,000 shares of the stock in a transaction dated Thursday, August 21st. The shares were sold at an average price of $36.35, for a total transaction of $72,700.00. Following the completion of the sale, the director owned 10,017 shares of the company's stock, valued at approximately $364,117.95. The trade was a 16.64% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 2,663,978 shares of company stock worth $82,687,283. Corporate insiders own 11.40% of the company's stock.

Cogent Communications Stock Up 3.2%

CCOI stock opened at $41.67 on Monday. Cogent Communications Holdings, Inc. has a 52 week low of $29.61 and a 52 week high of $86.76. The company has a quick ratio of 2.31, a current ratio of 2.31 and a debt-to-equity ratio of 49.06. The firm has a 50-day simple moving average of $38.61 and a 200-day simple moving average of $47.06. The stock has a market capitalization of $2.05 billion, a P/E ratio of -9.18 and a beta of 0.77.

Cogent Communications (NASDAQ:CCOI - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The technology company reported ($1.21) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.93) by ($0.28). Cogent Communications had a negative return on equity of 117.56% and a negative net margin of 21.57%.The firm had revenue of $246.25 million during the quarter, compared to analyst estimates of $247.79 million. During the same quarter in the previous year, the firm posted ($0.68) earnings per share. The company's quarterly revenue was down 5.4% on a year-over-year basis. Equities analysts forecast that Cogent Communications Holdings, Inc. will post -4.55 earnings per share for the current fiscal year.

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

Cogent Communications Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 5th. Investors of record on Thursday, August 21st were paid a $1.015 dividend. The ex-dividend date of this dividend was Thursday, August 21st. This represents a $4.06 annualized dividend and a yield of 9.7%. This is an increase from Cogent Communications's previous quarterly dividend of $1.01. Cogent Communications's dividend payout ratio is currently -89.43%.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on CCOI shares. Citigroup lowered shares of Cogent Communications from a "buy" rating to a "neutral" rating and cut their price target for the company from $67.00 to $33.00 in a research note on Tuesday, August 12th. The Goldman Sachs Group began coverage on shares of Cogent Communications in a report on Tuesday, September 2nd. They set a "neutral" rating and a $40.00 price objective on the stock. Royal Bank Of Canada restated a "sector perform" rating and issued a $40.00 target price (down previously from $74.00) on shares of Cogent Communications in a research note on Friday, August 8th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Cogent Communications in a research report on Saturday, September 27th. Finally, Wells Fargo & Company raised Cogent Communications from an "underweight" rating to an "overweight" rating and set a $45.00 price objective on the stock in a report on Monday, August 18th. Two investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Cogent Communications presently has an average rating of "Hold" and a consensus target price of $46.60.

Cogent Communications Company Profile

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.

Want to see what other hedge funds are holding CCOI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.