Turtle Creek Asset Management Inc. Grows Stock Position in Cogent Communications Holdings, Inc. $CCOI

Key Points

• Turtle Creek Asset Management increased its Cogent Communications stake by 7.7% in the first quarter, owning 4.35 million shares worth about $81.9 million, or 8.68% of the company. Institutional investors collectively hold 92.45% of CCOI’s shares.
• Cogent’s stock opened at $12.69, near its 52-week low of $10.93 and well below its $47.33 high. Analysts have a consensus “Hold” rating with an average price target of $24.90, although several firms recently cut their targets.
• The company faces legal and operational concerns, including a securities class-action lawsuit alleging misleading disclosures about wavelength demand and backlog. Recent quarterly results beat EPS expectations but missed revenue estimates, with revenue down 3.2% year over year and continued net losses.

Turtle Creek Asset Management Inc. boosted its holdings in Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Free Report) by 7.7% during the first quarter, according to its most recent Form 13F filing with the SEC. The fund owned 4,348,897 shares of the technology company's stock after acquiring an additional 312,050 shares during the period. Cogent Communications accounts for about 3.0% of Turtle Creek Asset Management Inc.'s portfolio, making the stock its 16th largest holding. Turtle Creek Asset Management Inc. owned approximately 8.68% of Cogent Communications worth $81,933,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. SG Americas Securities LLC increased its position in shares of Cogent Communications by 795.4% during the 4th quarter. SG Americas Securities LLC now owns 68,025 shares of the technology company's stock worth $1,467,000 after purchasing an additional 60,428 shares during the last quarter. Vanguard Group Inc. lifted its position in Cogent Communications by 4.1% in the fourth quarter. Vanguard Group Inc. now owns 5,580,271 shares of the technology company's stock valued at $120,311,000 after buying an additional 217,450 shares during the last quarter. Redmond Asset Management LLC lifted its position in Cogent Communications by 45.8% in the fourth quarter. Redmond Asset Management LLC now owns 200,082 shares of the technology company's stock valued at $4,314,000 after buying an additional 62,828 shares during the last quarter. Vest Financial LLC boosted its stake in Cogent Communications by 206.4% during the fourth quarter. Vest Financial LLC now owns 74,634 shares of the technology company's stock worth $1,609,000 after buying an additional 50,276 shares during the period. Finally, Harspring Capital Management LLC increased its position in shares of Cogent Communications by 60.3% during the fourth quarter. Harspring Capital Management LLC now owns 1,402,500 shares of the technology company's stock valued at $30,238,000 after acquiring an additional 527,500 shares during the last quarter. Institutional investors and hedge funds own 92.45% of the company's stock.

Insider Activity

In related news, CFO Thaddeus Gerard Weed sold 4,850 shares of the firm's stock in a transaction that occurred 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 sale, the chief financial officer owned 197,900 shares of the company's stock, valued at $3,322,741. This trade represents a 2.39% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 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 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 represents a 5.85% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 4.20% of the company's stock.

Key Cogent Communications News

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

• Positive Sentiment: Cogent announced that CEO Dave Schaeffer will present at three upcoming investor conferences, including the KeyBanc Technology Leadership Forum on August 10. The events could give management an opportunity to address investor concerns about demand, the wavelength business and the company’s financial outlook. Cogent Communications CEO to Present at Three Upcoming Conferences
• Neutral Sentiment: An investment article argued that Cogent’s valuation may look more attractive when its T-Mobile-related business is excluded, suggesting potential upside if investors place greater value on the company’s remaining operations. The article does not represent a new company announcement or change to guidance. Cogent Communications: Strip Out T-Mobile And The Discount Disappears
• Negative Sentiment: Robbins Geller filed a securities class-action lawsuit against Cogent and certain executives, alleging that investors were misled by false or incomplete statements. The allegations reportedly concern the nature of the wavelength backlog and demand for the business. The lead-plaintiff deadline is September 21, 2026. Robbins Geller class-action lawsuit announcement
• Negative Sentiment: Several other law firms publicized the same pending lawsuit and encouraged affected shareholders to seek lead-plaintiff status. Their notices cite alleged nondisclosure of weak or uncertain wavelength demand, an overstated backlog, the sustainability of Cogent’s dividend and risks associated with pledged insider shares and possible forced sales. These repeated announcements increase legal and reputational overhang, although the claims remain unproven. Levi & Korsinsky lawsuit notice

Analysts Set New Price Targets

A number of research firms have recently issued reports on CCOI. Wells Fargo & Company reduced their price target on shares of Cogent Communications from $23.00 to $18.00 and set an "equal weight" rating on the stock in a research note on Thursday, May 7th. Royal Bank Of Canada dropped their target price 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. JPMorgan Chase & Co. reissued a "neutral" rating and issued a $22.00 target price on shares of Cogent Communications in a research report on Friday, May 29th. Weiss Ratings cut Cogent Communications from a "sell (d+)" rating to a "sell (d)" rating in a research note on Wednesday, May 20th. Finally, TD Cowen restated a "buy" rating on shares of Cogent Communications in a research report on Monday, June 22nd. Three equities 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. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $24.90.

Cogent Communications Stock Down 2.0%

Cogent Communications stock opened at $12.69 on Thursday. Cogent Communications Holdings, Inc. has a 52-week low of $10.93 and a 52-week high of $47.33. The firm has a market cap of $635.31 million, a PE ratio of -3.57 and a beta of 0.80. The company's 50 day moving average is $14.63 and its two-hundred day moving average is $19.06.

Cogent Communications (NASDAQ:CCOI - Get Free Report) last posted its quarterly earnings results on Monday, May 4th. The technology company reported ($0.83) EPS for the quarter, topping the consensus estimate of ($1.03) by $0.20. The business had revenue of $239.19 million during the quarter, compared to the consensus estimate of $241.31 million. Cogent Communications had a negative net margin of 17.53% and a negative return on equity of 842.48%. The company's quarterly revenue was down 3.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($1.09) earnings per share. On average, equities research analysts anticipate 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 declared a quarterly dividend, which was paid on Tuesday, June 2nd. Shareholders of record on Monday, May 18th were given a $0.02 dividend. The ex-dividend date of this dividend was Monday, May 18th. This represents a $0.08 dividend on an annualized basis and a yield of 0.6%. Cogent Communications's dividend payout ratio (DPR) is currently -2.25%.

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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