Cogent Communications Reports Earnings Results

Cogent Communications (NASDAQ:CCOI) announced its quarterly earnings on Thursday. The company reported an earnings per share (EPS) of ($1.33) for the quarter, which was slightly better than analysts' expectations of ($1.34) by $0.01, according to Briefing.com. Cogent generated revenue of $257.20 million, falling short of the anticipated $258.69 million. The company recorded a net margin of 4.26% and a negative return on equity of 32.14%. Additionally, Cogent's revenue decreased by 6.6% compared to the same period last year. In the prior year's quarter, the company reported an EPS of ($1.13).

Stock Performance of Cogent Communications

On Friday, CCOI's stock price fell by $1.82, closing at $83.53. During the trading session, the stock saw a volume of 112,468 shares, which is lower than its average trading volume of 439,408 shares. Over the past year, the stock has experienced a low of $50.80 and a high of $86.76. The fifty-day simple moving average stands at $77.11, while the 200-day simple moving average is $67.50. Currently, Cogent Communications has a market capitalization of $4.09 billion, a price-to-earnings (PE) ratio of 107.91, and a beta of 0.40. The company has a quick ratio and current ratio both at 2.20, with a debt-to-equity ratio of 4.43.

Increased Dividend Declaration

The board at Cogent Communications declared a quarterly dividend payable on Friday, December 6th. Shareholders who are on record as of Friday, November 22nd, will receive a dividend of $0.995 per share. This increased dividend equates to an annualized payout of $3.98, reflecting a dividend yield of 4.76%. The ex-dividend date is set for Friday, November 22nd, representing an increase from the previous quarterly dividend of $0.99. Currently, the company's dividend payout ratio stands at 510.26%.

Insights from Wall Street Analysts

Analysts have recently provided their perspectives on CCOI. For instance, Citigroup raised its price target for Cogent Communications from $70.00 to $82.00, rating the stock as a "buy" on August 19th. The Royal Bank of Canada reaffirmed an "outperform" rating with a target price of $74.00 on September 3rd. Furthermore, TD Cowen increased its price target from $78.00 to $82.00, also labeling it as a "buy" on August 9th. KeyCorp revised its price target for the company from $80.00 to $90.00, and JPMorgan Chase raised its target price from $70.00 to $76.00 while maintaining a "neutral" rating as of August 12th. Among analysts, two recommend selling, two suggest holding, and four endorse buying the stock. According to MarketBeat data, Cogent Communications has an average rating of "Hold" with a target price of $77.14.

CEO and Executive Share Selling

In related news, CEO Dave Schaeffer sold 60,000 shares of Cogent Communications on August 27th, receiving an average price of $72.82, totaling $4,369,200. Following this sale, Schaeffer retains direct ownership of 4,373,038 shares, valued at approximately $318,444,627.16. Additionally, Chief Revenue Officer James Bubeck sold 1,920 shares on September 4th at an average price of $69.77, amounting to a transaction value of $133,958.40. After this sale, he holds 50,982 shares valued around $3,557,014.14. Over the last three months, insiders have sold 64,870 shares totaling $4,716,057. Currently, insiders hold 11.40% of the stock.

About Cogent Communications

Cogent Communications Holdings, Inc. operates through its subsidiaries to provide high-speed Internet access, private networking, and data center colocation services across North America, Europe, Oceania, South America, and Africa. The company offers services tailored to various sectors, including legal, financial, healthcare, education, and media, ensuring reliable connectivity and high performance.

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