Cogent Communications (NASDAQ:CCOI) Shares Up 9.3% – Here’s What Happened

Cogent Communications Holdings, Inc. (NASDAQ:CCOI) rose 9.3% on Wednesday . The company traded as high as $9.83 and last traded at $9.8450. 1,244,792 shares traded hands during trading, a decline of 5% from the average session volume of 1,308,055 shares. The stock had previously closed at $9.01.

Cogent Communications News Summary

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

• Positive Sentiment: A Zacks article included CCOI among five stocks with rising price-to-earnings ratios, offering a limited valuation-related positive. However, this was a screening article rather than a new company-specific development. Bet on 5 Top-Ranked Stocks With Rising P/E
• Neutral Sentiment: Analyst commentary covering communication-services companies, including Cogent and Verizon, was reported, but the available information does not identify a material change to CCOI’s rating, earnings outlook, or price target. Analysts Offer Insights on Communication Services Companies
• Negative Sentiment: Multiple law firms announced or promoted a securities class action against Cogent concerning investors who purchased shares from February 29, 2024, through May 1, 2026. The allegations focus on whether Cogent adequately disclosed risks involving optical-wavelength demand, backlog conversion, margin loans, pledged-share foreclosures, and dividend-related risks. Investors have until September 21, 2026 to seek lead-plaintiff status. The allegations have not been proven, but the litigation creates legal costs, potential liability, and ongoing headline pressure. Robbins Geller Announces Cogent Class Action Deadline
• Negative Sentiment: Chief Financial Officer Thaddeus Gerard Weed sold 4,850 CCOI shares for approximately $45,445 at an average price of $9.37, reducing his position by 2.45%. Although the sale is relatively small and does not establish a fundamental change, insider selling can weigh on investor sentiment. SEC Insider Trading Filing

Wall Street Analyst Weigh In

A number of brokerages have commented on CCOI. Weiss Ratings reiterated a “sell (d)” rating on shares of Cogent Communications in a research report on Monday, August 17th. UBS Group set a $9.00 price objective on shares of Cogent Communications in a research note on Wednesday, August 19th. Wall Street Zen raised shares of Cogent Communications from a “sell” rating to a “hold” rating in a report on Saturday, August 15th. KeyCorp decreased their target price on shares of Cogent Communications from $25.00 to $15.00 and set an “overweight” rating on the stock in a research report on Friday, August 7th. Finally, Royal Bank Of Canada decreased their target price on shares of Cogent Communications from $18.00 to $12.00 and set a “sector perform” rating on the stock in a research report on Thursday, August 13th. Three investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Cogent Communications has a consensus rating of “Hold” and a consensus price target of $19.55.

Cogent Communications Stock Down 2.3%

The stock has a market cap of $511.18 million, a P/E ratio of -10.40 and a beta of 0.77. The firm’s fifty day moving average price is $11.62 and its 200-day moving average price is $16.59.

Cogent Communications (NASDAQ:CCOI) last posted its quarterly earnings results on Thursday, August 6th. The technology company reported $1.38 EPS for the quarter, beating analysts’ consensus estimates of ($1.00) by $2.38. The company had revenue of $235.56 million during the quarter, compared to analyst estimates of $239.55 million. Cogent Communications had a negative net margin of 4.73% and a negative return on equity of 842.48%. The firm’s revenue was down 4.4% compared to the same quarter last year. During the same period in the prior year, the business posted ($1.21) EPS. Sell-side analysts predict that Cogent Communications Holdings, Inc. will post -3.01 earnings per share for the current year.

Cogent Communications Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 4th. Shareholders of record on Friday, August 21st will be given a $0.02 dividend. The ex-dividend date is Friday, August 21st. This represents a $0.08 dividend on an annualized basis and a dividend yield of 0.8%. Cogent Communications’s payout ratio is presently -8.33%.

Insider Activity

In related news, CFO Thaddeus Weed sold 4,850 shares of the business’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $9.37, for a total transaction of $45,444.50. Following the transaction, the chief financial officer owned 193,050 shares in the company, valued at $1,808,878.50. The trade was a 2.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Henry W. Kilmer sold 2,400 shares of the company’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 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. The trade was a 5.85% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 12,100 shares of company stock valued at $167,700. Insiders own 4.20% of the company’s stock.

Hedge Funds Weigh In On Cogent Communications

Hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. raised its holdings in shares of Cogent Communications by 4.1% during the fourth quarter. Vanguard Group Inc. now owns 5,580,271 shares of the technology company’s stock valued at $120,311,000 after acquiring an additional 217,450 shares in the last quarter. Turtle Creek Asset Management Inc. boosted its holdings in Cogent Communications by 64.9% in the third quarter. Turtle Creek Asset Management Inc. now owns 4,603,933 shares of the technology company’s stock valued at $176,561,000 after acquiring an additional 1,811,222 shares in the last quarter. State Street Corp increased its position in Cogent Communications by 6.8% during the 4th quarter. State Street Corp now owns 2,070,132 shares of the technology company’s stock valued at $44,632,000 after purchasing an additional 132,454 shares during the period. Newtyn Management LLC increased its position in Cogent Communications by 3.5% during the 2nd quarter. Newtyn Management LLC now owns 1,655,895 shares of the technology company’s stock valued at $22,984,000 after purchasing an additional 55,895 shares during the period. Finally, Park West Asset Management LLC bought a new position in Cogent Communications in the 4th quarter worth $30,380,000. 92.45% of the stock is 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.