Cogent Communications (NASDAQ:CCOI) Stock Price Up 7.3% – Here’s What Happened

Shares of Cogent Communications Holdings, Inc. (NASDAQ:CCOI) were up 7.3% on Monday . The stock traded as high as $9.67 and last traded at $9.8360. 691,315 shares were traded during trading, a decline of 47% from the average daily volume of 1,295,714 shares. The stock had previously closed at $9.17.

More Cogent Communications News

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

• Neutral Sentiment: Several firms, including Hagens Berman, Robbins Geller, Pomerantz, Kaplan Fox and others, announced or promoted the same proposed class action covering investors who purchased CCOI securities from February 29, 2024, through May 1, 2026. The announcements are primarily legal notices and investor solicitations, and the allegations have not been proven. Hagens Berman class action announcement
• Neutral Sentiment: The lawsuit centers on claims that Cogent’s disclosures about optical-wavelength demand, backlog, revenue-run-rate and growth prospects were misleading or overstated. Some notices also cite concerns about potential dividend risks. Kessler Topaz Cogent class action announcement
• Negative Sentiment: The legal overhang reinforces a sharp reassessment of Cogent’s growth story. Investor notices say CCOI previously fell more than 80% as backlog and dividend concerns emerged, while the stock remains well below its 50-day and 200-day moving averages and near its 12-month low. Potential litigation costs, reputational damage and further scrutiny of operating disclosures are weighing on sentiment. SueWallSt Cogent investor alert

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on CCOI shares. Wall Street Zen upgraded shares of Cogent Communications from a “sell” rating to a “hold” rating in a research report on Saturday, August 15th. KeyCorp lowered their price objective on shares of Cogent Communications from $25.00 to $15.00 and set an “overweight” rating on the stock in a research note on Friday, August 7th. TD Cowen dropped their target price on shares of Cogent Communications from $34.00 to $30.00 and set a “buy” rating on the stock in a report on Friday, August 7th. Weiss Ratings reissued a “sell (d)” rating on shares of Cogent Communications in a research note on Monday, August 17th. Finally, Royal Bank Of Canada reduced their target price on shares of Cogent Communications from $18.00 to $12.00 and set a “sector perform” rating for the company in a report on Thursday, August 13th. Three analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Cogent Communications has a consensus rating of “Hold” and a consensus price target of $19.55.

Cogent Communications Price Performance

The firm has a market capitalization of $506.05 million, a PE ratio of -10.29 and a beta of 0.80. The firm has a fifty day moving average price of $12.23 and a 200 day moving average price of $17.36.

Cogent Communications (NASDAQ:CCOI) last released its quarterly earnings results on Thursday, August 6th. The technology company reported $1.38 earnings per share for the quarter, beating analysts’ consensus estimates of ($1.00) by $2.38. The business had revenue of $235.56 million during the quarter, compared to analyst estimates of $239.55 million. Cogent Communications had a negative return on equity of 842.48% and a negative net margin of 4.73%.Cogent Communications’s revenue for the quarter was down 4.4% on a year-over-year basis. During the same quarter last year, the company posted ($1.21) EPS. On average, sell-side analysts expect that Cogent Communications Holdings, Inc. will post -2.7 EPS for the current year.

Cogent Communications Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Shareholders of record on Friday, August 21st will be issued a $0.02 dividend. This represents a $0.08 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Friday, August 21st. Cogent Communications’s dividend payout ratio (DPR) is presently -8.33%.

Insider Activity

In other news, CFO Thaddeus Gerard Weed sold 4,850 shares of Cogent Communications 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 transaction, the chief financial officer directly 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 transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Henry W. Kilmer sold 2,400 shares of the business’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. This represents a 5.85% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 4.20% of the company’s stock.

Institutional Trading of Cogent Communications

Large investors have recently added to or reduced their stakes in the company. Turtle Creek Asset Management Inc. boosted its position in shares of Cogent Communications by 64.9% in the third quarter. Turtle Creek Asset Management Inc. now owns 4,603,933 shares of the technology company’s stock worth $176,561,000 after buying an additional 1,811,222 shares during the period. Park West Asset Management LLC acquired a new position in Cogent Communications during the fourth quarter valued at $30,380,000. Bank of America Corp DE lifted its stake in Cogent Communications by 551.2% in the 3rd quarter. Bank of America Corp DE now owns 1,146,417 shares of the technology company’s stock worth $43,965,000 after acquiring an additional 970,367 shares in the last quarter. California State Teachers Retirement System lifted its stake in Cogent Communications by 1,545.0% in the 2nd quarter. California State Teachers Retirement System now owns 752,005 shares of the technology company’s stock worth $10,438,000 after acquiring an additional 706,291 shares in the last quarter. Finally, MIG Capital LLC acquired a new stake in Cogent Communications during the 4th quarter worth about $12,272,000. 92.45% of the stock is owned by institutional investors and hedge funds.

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.