Cogent Communications (NASDAQ:CCOI) Shares Down 5.4% – Should You Sell?

Cogent Communications Holdings, Inc. (NASDAQ:CCOI) fell 5.4% during mid-day trading on Tuesday . The stock traded as low as $12.34 and last traded at $12.2350. Approximately 353,236 shares were traded during mid-day trading, a decline of 71% from the average session volume of 1,232,469 shares. The stock had previously closed at $12.93.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on CCOI. TD Cowen reissued a “buy” rating on shares of Cogent Communications in a research note on Monday, June 22nd. Royal Bank Of Canada cut their target price on Cogent Communications from $22.00 to $18.00 and set a “sector perform” rating on the stock in a research report on Wednesday, May 6th. Citigroup reduced their target price on Cogent Communications from $22.00 to $20.00 and set a “neutral” rating for the company in a report on Tuesday, May 19th. Wells Fargo & Company decreased their price target on Cogent Communications from $23.00 to $18.00 and set an “equal weight” rating for the company in a research report on Thursday, May 7th. Finally, JPMorgan Chase & Co. reissued a “neutral” rating and issued a $22.00 price target on shares of Cogent Communications in a research note on Friday, May 29th. Three investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $24.90.

Cogent Communications Stock Down 7.1%

The firm has a market capitalization of $601.51 million, a PE ratio of -3.38 and a beta of 0.80. The business’s 50-day moving average price is $15.69 and its 200-day moving average price is $19.85.

Cogent Communications (NASDAQ:CCOI) last announced 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. The firm had revenue of $239.19 million for 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%. The firm’s revenue was down 3.2% on a year-over-year basis. During the same period in the previous year, the firm posted ($1.09) earnings per share. On average, analysts anticipate that Cogent Communications Holdings, Inc. will post -4.25 EPS for the current fiscal year.

Cogent Communications Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 2nd. Shareholders of record on Monday, May 18th were paid a $0.02 dividend. The ex-dividend date was Monday, May 18th. This represents a $0.08 dividend on an annualized basis and a yield of 0.7%. Cogent Communications’s payout ratio is -2.25%.

Insider Transactions at Cogent Communications

In other Cogent Communications news, VP Henry W. Kilmer sold 2,400 shares of the company’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $17.01, for a total value of $40,824.00. Following the transaction, the vice president directly owned 38,600 shares of the company’s stock, valued at $656,586. This represents a 5.85% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Thaddeus Gerard Weed sold 4,850 shares of the firm’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $16.79, for a total value of $81,431.50. Following the sale, 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 disclosure for this sale is available in the SEC filing. Insiders own 4.20% of the company’s stock.

Institutional Trading of Cogent Communications

A number of institutional investors have recently added to or reduced their stakes in CCOI. Quarry LP acquired a new position in shares of Cogent Communications during the 3rd quarter worth $27,000. Caitong International Asset Management Co. Ltd bought a new position in shares of Cogent Communications during the 4th quarter valued at $28,000. Parallel Advisors LLC lifted its stake 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 during the last quarter. Hantz Financial Services Inc. lifted its stake 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 purchasing an additional 1,127 shares during the last quarter. Finally, Strs Ohio bought a new stake in Cogent Communications in the first quarter worth $104,000. 92.45% of the stock is currently owned by institutional investors and hedge funds.

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.