Granahan Investment Management LLC Acquires 100,422 Shares of Cogent Communications Holdings, Inc. $CCOI

Key Points

• Granahan Investment Management boosted its Cogent Communications stake by 46.3% in the first quarter, buying 100,422 additional shares and bringing its total holdings to 317,447 shares worth about $5.98 million.
• Insider selling was reported, with CFO Thaddeus Gerard Weed and VP Henry W. Kilmer both trimming their positions in June, even as institutions continued to own the vast majority of the stock.
• Cogent shares are under pressure: the stock was down 8% to $11.87, analysts currently rate it a Hold on average, and the company is facing multiple securities-fraud class-action notices that add legal uncertainty.

Granahan Investment Management LLC increased its stake in shares of Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Free Report) by 46.3% in the 1st quarter, according to its most recent 13F filing with the SEC. The firm owned 317,447 shares of the technology company's stock after buying an additional 100,422 shares during the period. Granahan Investment Management LLC owned 0.63% of Cogent Communications worth $5,981,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also bought and sold shares of CCOI. Quarry LP bought a new stake in shares of Cogent Communications during the 3rd quarter worth approximately $27,000. Caitong International Asset Management Co. Ltd bought a new stake in Cogent Communications during the fourth quarter worth $28,000. Parallel Advisors LLC boosted its holdings 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 purchasing an additional 968 shares in the last quarter. Hantz Financial Services Inc. increased its stake in shares of Cogent Communications by 313.9% in the 4th quarter. Hantz Financial Services Inc. now owns 1,486 shares of the technology company's stock valued at $32,000 after purchasing an additional 1,127 shares during the last quarter. Finally, Strs Ohio bought a new position in shares of Cogent Communications in the 1st quarter valued at $104,000. Institutional investors and hedge funds own 92.45% of the company's stock.

Insider Buying and Selling

In other news, CFO Thaddeus Gerard Weed sold 4,850 shares of the company's stock in a transaction 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 transaction, the chief financial officer owned 197,900 shares of the company's stock, valued at $3,322,741. This represents a 2.39% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Henry W. Kilmer sold 2,400 shares of the company's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $17.01, for a total transaction of $40,824.00. Following the sale, the vice president owned 38,600 shares in the company, valued at $656,586. The trade was a 5.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 4.20% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

CCOI has been the subject of several research reports. Citigroup dropped their price objective on shares of Cogent Communications from $22.00 to $20.00 and set a "neutral" rating for the company in a research note on Tuesday, May 19th. TD Cowen reiterated a "buy" rating on shares of Cogent Communications in a research report on Monday, June 22nd. Wall Street Zen raised Cogent Communications from a "strong sell" rating to a "sell" rating in a research note on Saturday, June 27th. Weiss Ratings cut Cogent Communications from a "sell (d+)" rating to a "sell (d)" rating in a report on Wednesday, May 20th. Finally, UBS Group lowered their price objective on Cogent Communications from $21.00 to $17.00 and set a "neutral" rating for the company in a research note on Tuesday, May 5th. Three investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Cogent Communications currently has a consensus rating of "Hold" and an average target price of $24.90.

Cogent Communications Trading Down 8.0%

CCOI opened at $11.87 on Friday. Cogent Communications Holdings, Inc. has a 1-year low of $10.93 and a 1-year high of $49.38. The company has a market cap of $594.45 million, a price-to-earnings ratio of -3.34 and a beta of 0.80. The company's fifty day moving average price is $14.93 and its two-hundred day moving average price is $19.26.

Cogent Communications (NASDAQ:CCOI - Get Free Report) last posted 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 return on equity of 842.48% and a negative net margin of 17.53%.The company had revenue of $239.19 million for the quarter, compared to analyst estimates of $241.31 million. During the same quarter last year, the company earned ($1.09) earnings per share. The company's revenue for the quarter was down 3.2% on a year-over-year basis. As a group, equities analysts forecast that Cogent Communications Holdings, Inc. will post -4.25 earnings per share for the current fiscal year.

Cogent Communications Dividend Announcement

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

Key Headlines Impacting Cogent Communications

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

About Cogent Communications

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.