Cogent Communications (NASDAQ:CCOI) Shares Up 5.7% – Should You Buy?

Cogent Communications Holdings, Inc. (NASDAQ:CCOI) traded up 5.7% during trading on Monday . The company traded as high as $11.63 and last traded at $11.59. Approximately 156,587 shares traded hands during trading, a decline of 87% from the average session volume of 1,226,983 shares. The stock had previously closed at $10.97.

Wall Street Analyst Weigh In

Several research firms recently weighed in on CCOI. JPMorgan Chase & Co. restated a “neutral” rating and issued a $22.00 target price on shares of Cogent Communications in a report on Friday, May 29th. Wells Fargo & Company dropped their price target on shares of Cogent Communications from $23.00 to $18.00 and set an “equal weight” rating on the stock in a research report on Thursday, May 7th. Weiss Ratings cut shares of Cogent Communications from a “sell (d+)” rating to a “sell (d)” rating in a research note on Wednesday, May 20th. Wall Street Zen raised shares of Cogent Communications from a “strong sell” rating to a “sell” rating in a report on Saturday, June 27th. Finally, TD Cowen reiterated a “buy” rating on shares of Cogent Communications in a research note on Monday, June 22nd. Three research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Cogent Communications has an average rating of “Hold” and an average price target of $24.90.

Cogent Communications Stock Performance

The stock has a market cap of $604.72 million, a P/E ratio of -3.39 and a beta of 0.80. The firm has a 50 day moving average of $15.29 and a two-hundred day moving average of $19.55.

Cogent Communications (NASDAQ:CCOI) last issued its quarterly earnings results 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 analyst estimates of $241.31 million. Cogent Communications had a negative return on equity of 842.48% and a negative net margin of 17.53%.The company’s quarterly revenue was down 3.2% compared to the same quarter last year. During the same period in the previous year, the company earned ($1.09) earnings per share. On average, sell-side analysts anticipate that Cogent Communications Holdings, Inc. will post -4.25 EPS for the current fiscal year.

Cogent Communications Announces Dividend

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

Insiders Place Their Bets

In other Cogent Communications news, VP Henry W. Kilmer sold 2,400 shares of the firm’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $17.01, for a total value of $40,824.00. Following the sale, the vice president directly owned 38,600 shares in the company, valued at $656,586. This trade represents a 5.85% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Thaddeus Gerard Weed sold 4,850 shares of the business’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $16.79, for a total transaction of $81,431.50. Following the transaction, the chief financial officer owned 197,900 shares in the company, valued at approximately $3,322,741. The trade was a 2.39% decrease in their position. The SEC filing for this sale provides additional information. 4.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Cogent Communications

Several institutional investors and hedge funds have recently added to or reduced their stakes in CCOI. Shrier Wealth Management LLC raised its holdings in Cogent Communications by 33.1% in the 2nd quarter. Shrier Wealth Management LLC now owns 23,453 shares of the technology company’s stock valued at $326,000 after acquiring an additional 5,835 shares in the last quarter. Parallel Advisors LLC grew its holdings in shares of Cogent Communications by 208.6% during the 1st quarter. Parallel Advisors LLC now owns 1,432 shares of the technology company’s stock worth $27,000 after purchasing an additional 968 shares in the last quarter. Turtle Creek Asset Management Inc. increased its position in shares of Cogent Communications by 7.7% during the first quarter. Turtle Creek Asset Management Inc. now owns 4,348,897 shares of the technology company’s stock valued at $81,933,000 after purchasing an additional 312,050 shares during the period. Quantinno Capital Management LP increased its position in shares of Cogent Communications by 77.9% during the first quarter. Quantinno Capital Management LP now owns 108,875 shares of the technology company’s stock valued at $2,051,000 after purchasing an additional 47,668 shares during the period. Finally, FourWorld Capital Management LLC acquired a new position in shares of Cogent Communications in the first quarter valued at $5,002,000. 92.45% of the stock is currently owned by institutional investors.

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.