Cogent Communications (NASDAQ:CCOI) Hits New 52-Week Low – Here’s Why

Shares of Cogent Communications Holdings, Inc. (NASDAQ:CCOI) reached a new 52-week low on Tuesday . The company traded as low as $12.12 and last traded at $12.19, with a volume of 1424533 shares trading hands. The stock had previously closed at $12.99.

Analyst Ratings Changes

Several equities analysts have issued reports on the company. TD Cowen reiterated a “buy” rating on shares of Cogent Communications in a research report on Monday, June 22nd. UBS Group cut their price target on Cogent Communications from $21.00 to $17.00 and set a “neutral” rating for the company in a report on Tuesday, May 5th. Weiss Ratings downgraded shares of Cogent Communications from a “sell (d+)” rating to a “sell (d)” rating in a research report on Wednesday, May 20th. JPMorgan Chase & Co. reissued a “neutral” rating and set a $22.00 price objective on shares of Cogent Communications in a report on Friday, May 29th. Finally, 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 research note on Wednesday, May 6th. Three investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $24.90.

Cogent Communications Stock Down 6.2%

The company has a market cap of $610.48 million, a P/E ratio of -3.43 and a beta of 0.80. The business has a 50-day moving average price of $16.84 and a two-hundred day moving average price of $20.19.

Cogent Communications (NASDAQ:CCOI) last posted its quarterly earnings results on Monday, May 4th. The technology company reported ($0.83) earnings per share (EPS) for the quarter, beating the consensus estimate of ($1.03) by $0.20. The business had revenue of $239.19 million for the quarter, compared to analysts’ expectations of $241.31 million. Cogent Communications had a negative return on equity of 842.48% and a negative net margin of 17.53%.The firm’s quarterly revenue was down 3.2% compared to the same quarter last year. During the same quarter last year, the business earned ($1.09) earnings per share. As a group, sell-side analysts expect that Cogent Communications Holdings, Inc. will post -4.25 EPS for the current fiscal year.

Cogent Communications Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 2nd. Stockholders of record on Monday, May 18th were given a dividend of $0.02 per share. The ex-dividend date was Monday, May 18th. This represents a $0.08 annualized dividend and a dividend yield of 0.7%. Cogent Communications’s payout ratio is currently -2.25%.

Insider Buying and Selling

In related news, VP Henry W. Kilmer sold 2,400 shares of Cogent Communications stock in a transaction 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 sale, the vice president directly owned 38,600 shares of the company’s stock, valued at $656,586. The trade was a 5.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Thaddeus Gerard Weed sold 4,850 shares of the company’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $16.79, for a total value of $81,431.50. Following the completion of the sale, 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 SEC filing for this sale provides additional information. 4.20% of the stock is currently owned by company insiders.

Institutional Trading of Cogent Communications

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Quarry LP acquired a new stake in shares of Cogent Communications in the 3rd quarter valued at approximately $27,000. Caitong International Asset Management Co. Ltd acquired a new stake in Cogent Communications in the fourth quarter worth $28,000. Parallel Advisors LLC raised its holdings in Cogent Communications by 208.6% in the first quarter. Parallel Advisors LLC now owns 1,432 shares of the technology company’s stock worth $27,000 after purchasing an additional 968 shares during the period. Hantz Financial Services Inc. increased its position 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 buying an additional 1,127 shares in the last quarter. Finally, Strs Ohio bought a new stake in shares of Cogent Communications in the 1st quarter valued at $104,000. 92.45% of the stock is owned by institutional investors.

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.