Cogent Communications (NASDAQ:CCOI) Price Target Cut to $34.00 by Analysts at TD Cowen

Cogent Communications (NASDAQ:CCOI) had its price objective cut by stock analysts at TD Cowen from $40.00 to $34.00 in a report issued on Tuesday,Benzinga reports. The firm presently has a “buy” rating on the technology company’s stock. TD Cowen’s price target would suggest a potential upside of 86.25% from the company’s previous close.

A number of other analysts have also recently commented on CCOI. Wells Fargo & Company lowered their price objective on shares of 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. KeyCorp lowered their price objective on shares of Cogent Communications from $30.00 to $25.00 and set an “overweight” rating for the company in a research report on Monday, February 23rd. UBS Group lowered their price objective on shares of Cogent Communications from $21.00 to $17.00 and set a “neutral” rating for the company in a research report on Tuesday. Oppenheimer lowered their price objective on shares of Cogent Communications from $40.00 to $30.00 and set an “outperform” rating for the company in a research report on Monday, February 23rd. Finally, Royal Bank Of Canada lowered their price objective on shares of Cogent Communications from $23.00 to $22.00 and set a “sector perform” rating for the company in a research report on Wednesday, March 18th. Three research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Cogent Communications currently has an average rating of “Hold” and an average target price of $26.30.

Cogent Communications Price Performance

Shares of Cogent Communications stock traded up $1.89 on Tuesday, hitting $18.26. 2,176,888 shares of the company’s stock traded hands, compared to its average volume of 1,194,160. The firm’s 50-day moving average price is $20.75 and its two-hundred day moving average price is $24.01. The stock has a market capitalization of $913.85 million, a PE ratio of -4.79 and a beta of 0.85. Cogent Communications has a one year low of $14.82 and a one year high of $55.89.

Cogent Communications (NASDAQ:CCOI) last released its quarterly earnings data on Monday, May 4th. The technology company reported ($0.83) EPS for the quarter, beating analysts’ consensus estimates of ($1.03) by $0.20. Cogent Communications had a negative net margin of 18.67% and a negative return on equity of 842.48%. The business had revenue of $239.19 million during the quarter, compared to analysts’ expectations of $241.31 million. During the same quarter in the prior year, the company earned ($1.09) EPS. The firm’s quarterly revenue was down 3.2% on a year-over-year basis. On average, analysts forecast that Cogent Communications will post -3.66 earnings per share for the current fiscal year.

Insider Buying and Selling at Cogent Communications

In related news, Director Lewis H. Ferguson sold 2,206 shares of Cogent Communications stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $23.03, for a total value of $50,804.18. Following the sale, the director owned 20,449 shares of the company’s stock, valued at approximately $470,940.47. The trade was a 9.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Henry W. Kilmer sold 2,400 shares of Cogent Communications stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $23.35, for a total value of $56,040.00. Following the completion of the sale, the vice president directly owned 41,000 shares in the company, valued at approximately $957,350. This represents a 5.53% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 12,756 shares of company stock valued at $292,467. Corporate insiders own 4.20% of the company’s stock.

Institutional Trading of Cogent Communications

A number of hedge funds and other institutional investors have recently modified their holdings of CCOI. AQR Capital Management LLC acquired a new stake in shares of Cogent Communications in the first quarter valued at about $202,000. Goldman Sachs Group Inc. increased its holdings in shares of Cogent Communications by 26.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 476,513 shares of the technology company’s stock worth $29,215,000 after acquiring an additional 100,969 shares during the last quarter. Empowered Funds LLC increased its holdings in shares of Cogent Communications by 10.3% during the 1st quarter. Empowered Funds LLC now owns 5,466 shares of the technology company’s stock worth $335,000 after acquiring an additional 510 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of 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 worth $9,919,000 after acquiring an additional 30,630 shares during the last quarter. Finally, Strs Ohio acquired a new position in shares of Cogent Communications during the 1st quarter worth approximately $104,000. Institutional investors and hedge funds own 92.45% of the company’s stock.

Cogent Communications News Summary

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

• Positive Sentiment: Q1 EPS beat expectations and operating margins improved, which provided some near?term support after the selloff. The company reported a smaller GAAP loss (?$0.83/sh) vs. consensus and showed sequential margin improvement. MarketBeat Q1 report
• Positive Sentiment: Wavelength and data?center monetization are bright spots: wavelength revenue rose sharply year?over?year and sequentially, suggesting growth pockets that could drive future top?line stabilization. PR Newswire Q1 release
• Neutral Sentiment: JPMorgan reaffirmed a “neutral” rating with a $22 price target, signaling analyst belief in upside from current levels but not an outright buy endorsement. Finviz JPMorgan note
• Neutral Sentiment: The company declared a small quarterly dividend ($0.02/sh), a token yield that is unlikely to materially change investor sentiment but shows management maintaining capital returns. (Ex?dividend May 18)
• Negative Sentiment: Revenue missed Street estimates and service revenue declined year?over?year, fueling the initial selloff; investors worry that legacy off?net declines will pressure growth. Yahoo Finance on revenue miss
• Negative Sentiment: Multiple law firms have opened investigations into potential securities claims (Block & Leviton, Kehoe, Johnson Fistel), which raises the risk of litigation, management distraction and further stock pressure. Kehoe Newsfile Block & Leviton GlobeNewswire Johnson Fistel GlobeNewswire
• Negative Sentiment: Balance?sheet concerns and execution risk remain prominent: high debt (~$2.6B), weak cash (~$140M), and negative net margins leave little room for error if revenue pressure persists. Analysts warn operational improvements may slow. Seeking Alpha analysis

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.