Medina Value Partners LLC Takes Position in Cogent Communications Holdings, Inc. $CCOI

Key Points

• Medina Value Partners LLC established a new position in Cogent Communications in Q3, buying 277,172 shares worth about $10.63 million, which is roughly 2.5% of the fund's portfolio and leaves Medina with a 0.56% stake (its 20th largest holding).
• Wall Street sentiment is mixed: several firms have recently cut price targets and MarketBeat shows a consensus rating of Hold with a $26.78 average target, while institutional investors own about 92.45% of the stock.
• Insiders have been net sellers (director and CFO sales; 12,756 shares worth ~$292,467 sold in the last 90 days), and Cogent posted a narrower-than-expected quarterly loss (EPS -$0.64 vs. -$1.09) with revenue slightly below estimates; CCOI trades near $19.98 and pays a $0.02 quarterly dividend (0.4% yield).

Medina Value Partners LLC bought a new stake in shares of Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Free Report) during the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund bought 277,172 shares of the technology company's stock, valued at approximately $10,630,000. Cogent Communications accounts for approximately 2.5% of Medina Value Partners LLC's portfolio, making the stock its 20th largest holding. Medina Value Partners LLC owned 0.56% of Cogent Communications at the end of the most recent reporting period.

A number of other hedge funds have also added to or reduced their stakes in CCOI. AQR Capital Management LLC purchased a new stake in shares of Cogent Communications during the first quarter valued at approximately $202,000. Goldman Sachs Group Inc. increased its stake in shares of Cogent Communications by 26.9% in the first quarter. Goldman Sachs Group Inc. now owns 476,513 shares of the technology company's stock worth $29,215,000 after buying an additional 100,969 shares during the period. Empowered Funds LLC raised its holdings in Cogent Communications by 10.3% during the 1st quarter. Empowered Funds LLC now owns 5,466 shares of the technology company's stock valued at $335,000 after buying an additional 510 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Cogent Communications by 23.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 161,791 shares of the technology company's stock valued at $9,919,000 after buying an additional 30,630 shares during the period. Finally, Strs Ohio bought a new stake in Cogent Communications in the 1st quarter worth $104,000. Hedge funds and other institutional investors own 92.45% of the company's stock.

Insider Buying and Selling at Cogent Communications

In other news, Director Lewis H. Ferguson sold 2,206 shares of the stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $23.03, for a total transaction of $50,804.18. Following the completion of the sale, the director owned 20,449 shares in the company, valued at approximately $470,940.47. This represents a 9.74% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Thaddeus Gerard Weed sold 4,850 shares of the firm's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $22.63, for a total transaction of $109,755.50. Following the transaction, the chief financial officer owned 202,750 shares of the company's stock, valued at approximately $4,588,232.50. This represents a 2.34% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 12,756 shares of company stock valued at $292,467 in the last ninety days. 11.40% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on CCOI. KeyCorp dropped their price target on shares of Cogent Communications from $30.00 to $25.00 and set an "overweight" rating on the stock in a research note on Monday, February 23rd. Wells Fargo & Company dropped their target price on Cogent Communications from $27.00 to $23.00 and set an "equal weight" rating for the company in a research report on Thursday, March 5th. Oppenheimer dropped their price objective on shares of Cogent Communications from $40.00 to $30.00 and set an "outperform" rating on the stock in a report on Monday, February 23rd. JPMorgan Chase & Co. reduced their price target on Cogent Communications from $37.00 to $23.00 and set a "neutral" rating for the company in a report on Thursday, November 13th. Finally, TD Cowen reissued a "buy" rating on shares of Cogent Communications in a report on Monday, February 23rd. Three research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Cogent Communications has a consensus rating of "Hold" and a consensus price target of $26.78.

Cogent Communications Price Performance

CCOI stock traded up $0.35 on Friday, reaching $19.98. 83,523 shares of the company's stock were exchanged, compared to its average volume of 1,155,279. The stock has a fifty day moving average of $23.03 and a 200-day moving average of $28.63. The company has a quick ratio of 2.04, a current ratio of 2.04 and a debt-to-equity ratio of 49.06. The firm has a market cap of $1.00 billion, a PE ratio of -5.23 and a beta of 0.84. Cogent Communications Holdings, Inc. has a twelve month low of $15.96 and a twelve month high of $71.55.

Cogent Communications (NASDAQ:CCOI - Get Free Report) last issued its earnings results on Friday, February 20th. The technology company reported ($0.64) earnings per share for the quarter, topping the consensus estimate of ($1.09) by $0.45. Cogent Communications had a negative return on equity of 842.48% and a negative net margin of 18.67%.The business had revenue of $240.52 million for the quarter, compared to analyst estimates of $243.82 million. During the same period last year, the company posted ($0.91) EPS. The business's quarterly revenue was down 4.7% on a year-over-year basis. As a group, equities analysts predict that Cogent Communications Holdings, Inc. will post -4.55 EPS for the current fiscal year.

Cogent Communications Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, March 20th. Shareholders of record on Friday, March 6th will be given a $0.02 dividend. This represents a $0.08 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date is Friday, March 6th. Cogent Communications's dividend payout ratio is -2.10%.

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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