Cogent Communications (NASDAQ:CCOI) Hits New 1-Year Low – Time to Sell?

Cogent Communications Holdings, Inc. (NASDAQ:CCOI)’s share price hit a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $14.59 and last traded at $14.5140, with a volume of 734297 shares changing hands. The stock had previously closed at $15.81.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the stock. Royal Bank Of Canada lowered 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. Citigroup lowered their target price on shares of Cogent Communications from $22.00 to $20.00 and set a “neutral” rating for the company in a report on Tuesday, May 19th. Wall Street Zen upgraded shares of Cogent Communications from a “strong sell” rating to a “sell” rating in a report on Sunday, April 26th. 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. Finally, Wells Fargo & Company decreased their price target on shares of Cogent Communications from $23.00 to $18.00 and set an “equal weight” rating for the company in a research note on Thursday, May 7th. Three research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $24.90.

Cogent Communications Stock Performance

The company has a market cap of $790.48 million, a PE ratio of -4.45 and a beta of 0.77. The stock’s 50-day simple moving average is $19.35 and its 200 day simple moving average is $20.97.

Cogent Communications (NASDAQ:CCOI) last announced its quarterly earnings data on Monday, May 4th. The technology company reported ($0.83) EPS for the quarter, topping analysts’ consensus estimates of ($1.03) by $0.20. The company 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%. Cogent Communications’s quarterly revenue was down 3.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($1.09) EPS. On average, sell-side analysts predict that Cogent Communications Holdings, Inc. will post -4.25 EPS for the current fiscal year.

Cogent Communications Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 2nd. Shareholders 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 dividend on an annualized basis and a yield of 0.5%. Cogent Communications’s dividend payout ratio is presently -2.25%.

Hedge Funds Weigh In On Cogent Communications

A number of large investors have recently made changes to their positions in the stock. Federation des caisses Desjardins du Quebec increased its holdings in shares of Cogent Communications by 17.5% in the 4th quarter. Federation des caisses Desjardins du Quebec now owns 2,850 shares of the technology company’s stock valued at $61,000 after purchasing an additional 425 shares in the last quarter. Empowered Funds LLC increased its holdings in shares of Cogent Communications by 10.3% in the 1st quarter. Empowered Funds LLC now owns 5,466 shares of the technology company’s stock valued at $335,000 after purchasing an additional 510 shares in the last quarter. Quarry LP purchased a new position in shares of Cogent Communications in the 3rd quarter valued at about $27,000. Farther Finance Advisors LLC increased its holdings in shares of Cogent Communications by 56.6% in the 4th quarter. Farther Finance Advisors LLC now owns 2,092 shares of the technology company’s stock valued at $45,000 after purchasing an additional 756 shares in the last quarter. Finally, Parallel Advisors LLC increased its holdings in shares of Cogent Communications by 208.6% in the 1st quarter. Parallel Advisors LLC now owns 1,432 shares of the technology company’s stock valued at $27,000 after purchasing an additional 968 shares in the last quarter. Hedge funds and other institutional investors own 92.45% of the company’s stock.

About Cogent Communications

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.