Cogent Communications (NASDAQ:CCOI) Trading Up 7.5% – Time to Buy?

Shares of Cogent Communications Holdings, Inc. (NASDAQ:CCOI) rose 7.5% during mid-day trading on Friday . The stock traded as high as $11.08 and last traded at $11.1240. Approximately 1,319,792 shares traded hands during trading, an increase of 3% from the average daily volume of 1,278,664 shares. The stock had previously closed at $10.35.

Cogent Communications News Roundup

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

• Positive Sentiment: Recent trading has been supported by above-average volume, indicating heightened investor interest and potential short-term buying or short-covering activity.
• Neutral Sentiment: Multiple law firms reiterated that investors who purchased CCOI shares from February 29, 2024, through May 1, 2026, may seek lead-plaintiff status by September 21, 2026. The announcements largely repeat the same pending securities class action and do not represent a new court finding. Hagens Berman class action notice
• Negative Sentiment: The lawsuit alleges that Cogent failed to disclose issues involving demand, wavelength backlog and the reliability of a key growth metric before an approximately 29% stock decline. If proven, the claims could create legal costs, settlement exposure and reputational damage, although the allegations remain unproven. Kahn Swick & Foti class action notice
• Negative Sentiment: UBS lowered its CCOI price target from $17 to $11 and maintained a Neutral rating. Citi previously cut its target from $20 to $11.50 with a Neutral rating, while RBC reduced its target from $18 to $12 and retained a Sector Perform rating. The reductions reflect more cautious expectations for Cogent’s growth and valuation. Analyst price-target updates

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. UBS Group cut their price objective on Cogent Communications from $17.00 to $11.00 and set a “neutral” rating for the company in a report on Friday. Royal Bank Of Canada cut their price target 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. 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 upgraded shares of Cogent Communications from a “sell” rating to a “hold” rating in a report on Saturday. Finally, KeyCorp cut their target price on shares of Cogent Communications from $25.00 to $15.00 and set an “overweight” rating for the company in a research note on Friday, August 7th. Three investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $21.05.

Cogent Communications Trading Up 9.3%

The stock has a fifty day moving average of $13.04 and a 200-day moving average of $18.10. The firm has a market capitalization of $579.30 million, a price-to-earnings ratio of -11.78 and a beta of 0.80.

Cogent Communications (NASDAQ:CCOI) last announced its earnings results on Thursday, August 6th. The technology company reported $1.38 EPS for the quarter, beating the consensus estimate of ($1.00) by $2.38. Cogent Communications had a negative return on equity of 842.48% and a negative net margin of 4.73%.The business had revenue of $235.56 million during the quarter, compared to the consensus estimate of $239.55 million. During the same period in the prior year, the business posted ($1.21) earnings per share. Cogent Communications’s revenue was down 4.4% compared to the same quarter last year. As a group, equities research analysts forecast that Cogent Communications Holdings, Inc. will post -2.7 earnings per share for the current fiscal year.

Cogent Communications Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 4th. Shareholders of record on Friday, August 21st will be issued a dividend of $0.02 per share. This represents a $0.08 annualized dividend and a yield of 0.7%. The ex-dividend date is Friday, August 21st. Cogent Communications’s payout ratio is presently -8.33%.

Insider Transactions at Cogent Communications

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. 4.20% of the stock is currently 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 the company. Bank of New York Mellon Corp acquired a new stake in Cogent Communications during the 2nd quarter valued at $3,685,000. Shrier Wealth Management LLC boosted its position in shares of Cogent Communications by 33.1% in the second quarter. Shrier Wealth Management LLC now owns 23,453 shares of the technology company’s stock worth $326,000 after buying an additional 5,835 shares during the period. Parallel Advisors LLC boosted its position in shares of Cogent Communications by 208.6% in the first quarter. Parallel Advisors LLC now owns 1,432 shares of the technology company’s stock worth $27,000 after buying an additional 968 shares during the period. Turtle Creek Asset Management Inc. grew its holdings 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 buying an additional 312,050 shares in the last quarter. Finally, Quantinno Capital Management LP grew its holdings 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 buying an additional 47,668 shares in the last quarter. 92.45% of the stock is currently owned by hedge funds and other 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.