Cogent Communications (NASDAQ:CCOI) Hits New 12-Month Low – Here’s Why

Cogent Communications Holdings, Inc. (NASDAQ:CCOI) shares hit a new 52-week low on Thursday . The stock traded as low as $25.77 and last traded at $27.0330, with a volume of 372060 shares traded. The stock had previously closed at $38.30.

Analyst Upgrades and Downgrades

CCOI has been the subject of several research reports. Wells Fargo & Company reiterated an “equal weight” rating and set a $27.00 price objective (down previously from $45.00) on shares of Cogent Communications in a research report on Friday. KeyCorp decreased their price objective on Cogent Communications from $65.00 to $30.00 and set an “overweight” rating on the stock in a research report on Friday. Weiss Ratings restated a “sell (d)” rating on shares of Cogent Communications in a report on Wednesday, October 8th. Citigroup lowered shares of Cogent Communications from a “buy” rating to a “neutral” rating and dropped their price objective for the stock from $67.00 to $33.00 in a research note on Tuesday, August 12th. Finally, Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $40.00 price target (down from $74.00) on shares of Cogent Communications in a research note on Friday, August 8th. One equities research analyst has rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and an average target price of $30.33.

Cogent Communications Stock Down 5.9%

The stock has a market cap of $1.16 billion, a P/E ratio of -5.17 and a beta of 0.77. The company’s 50 day moving average price is $39.65 and its two-hundred day moving average price is $44.38. The company has a quick ratio of 2.31, a current ratio of 2.31 and a debt-to-equity ratio of 49.06.

Cogent Communications (NASDAQ:CCOI) last issued its earnings results on Thursday, November 6th. The technology company reported ($0.87) earnings per share for the quarter, beating analysts’ consensus estimates of ($1.15) by $0.28. The business had revenue of $241.95 million during the quarter, compared to analyst estimates of $246.13 million. Cogent Communications had a negative return on equity of 117.56% and a negative net margin of 21.57%.Cogent Communications’s revenue was down 5.9% on a year-over-year basis. During the same period in the previous year, the company posted ($1.33) EPS. As a group, research analysts expect that Cogent Communications Holdings, Inc. will post -4.55 earnings per share for the current year.

Cogent Communications Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, December 8th. Shareholders of record on Friday, November 21st will be issued a dividend of $0.02 per share. The ex-dividend date is Friday, November 21st. This represents a $0.08 dividend on an annualized basis and a yield of 0.3%. Cogent Communications’s dividend payout ratio is currently -99.51%.

Cogent Communications declared that its Board of Directors has initiated a share buyback plan on Thursday, August 7th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the technology company to repurchase up to 4.6% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In related news, Director Sheryl Lynn Kennedy sold 2,000 shares of the firm’s stock in a transaction dated Thursday, August 21st. The stock was sold at an average price of $36.35, for a total transaction of $72,700.00. Following the sale, the director owned 10,017 shares of the company’s stock, valued at $364,117.95. This trade represents a 16.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Henry W. Kilmer sold 2,400 shares of the business’s stock in a transaction dated Friday, September 5th. The stock was sold at an average price of $36.99, for a total transaction of $88,776.00. Following the completion of the transaction, the vice president owned 36,200 shares of the company’s stock, valued at $1,339,038. This represents a 6.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 11.40% of the company’s stock.

Hedge Funds Weigh In On Cogent Communications

A number of large investors have recently made changes to their positions in CCOI. AlphaQuest LLC acquired a new stake in shares of Cogent Communications in the 1st quarter worth $36,000. Farther Finance Advisors LLC grew its position in Cogent Communications by 297.8% during the 2nd quarter. Farther Finance Advisors LLC now owns 740 shares of the technology company’s stock worth $36,000 after purchasing an additional 554 shares during the last quarter. Atlantic Union Bankshares Corp acquired a new position in Cogent Communications during the 2nd quarter valued at approximately $40,000. Byrne Asset Management LLC acquired a new stake in shares of Cogent Communications during the second quarter worth $41,000. Finally, Resources Management Corp CT ADV acquired a new position in shares of Cogent Communications in the 1st quarter valued at $48,000. 92.45% of the stock is owned by institutional investors and hedge funds.

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.