Wealth Enhancement Advisory Services LLC Reduces Stake in Cogent Communications Holdings, Inc.

Wealth Enhancement Advisory Services LLC has decreased its investment in Cogent Communications Holdings, Inc. (NASDAQ:CCOI) by 9.8% in the third quarter, based on recent filings with the SEC. After selling 606 shares during this period, the fund now holds a total of 5,565 shares in the technology company, which are valued at approximately $422,000.

In addition to Wealth Enhancement Advisory's adjustments, several other significant investors have also changed their positions in Cogent Communications recently. For instance, EntryPoint Capital LLC initiated a new investment in the company's shares valued at around $26,000 in the first quarter. In the third quarter, Blue Trust Inc. increased its holdings in Cogent Communications by an impressive 204.5% and now owns 405 shares worth about $31,000 after acquiring 272 more shares in the last quarter. Hexagon Capital Partners LLC raised its investment by 72.9%, bringing its total to 536 shares valued at $41,000 through the purchase of an additional 226 shares during the reporting period.

Furthermore, Northwestern Mutual Wealth Management Co. boosted its stake in the company by 127.5% in the second quarter, now owning 787 shares valued at approximately $44,000 after purchasing an additional 441 shares. GAMMA Investing LLC also increased its position in Cogent Communications by 207.0% in the third quarter, acquiring 660 shares worth roughly $50,000 following the purchase of 445 shares. It is noteworthy that institutional investors collectively own 92.45% of the company's stock.

Analyst Price Targets for Cogent Communications

Recently, several equities research analysts issued updates regarding Cogent Communications' stock. Notably, KeyCorp raised its target price from $80.00 to $90.00 while giving the company an “overweight” rating in a report published on August 27. Similarly, JPMorgan Chase & Co. increased its price target from $70.00 to $76.00 while assigning a “neutral” rating on August 12. Citigroup also revised its target price from $70.00 to $82.00, rating the stock as a “buy” on August 19. TD Cowen adjusted its price target from $78.00 to $82.00, maintaining a “buy” rating on August 9. Finally, The Goldman Sachs Group set a new target price for Cogent Communications at $71.00, moving up from $62.00, and designated the stock as “neutral” on October 4. The overall consensus rating for the stock from analysts is “Hold,” with an average target price of approximately $77.14.

Performance Overview of Cogent Communications

At the opening of trading on Friday, shares of NASDAQ:CCOI were priced at $83.75. The company demonstrates a current ratio and quick ratio both at 2.20, alongside a debt-to-equity ratio of 4.43. Cogent Communications has a market capitalization of $4.10 billion, a price-to-earnings (P/E) ratio of 92.03, and a beta of 0.40. The stock's 50-day and 200-day moving averages are $77.38 and $67.66, respectively. Over the last year, Cogent's stock has seen a low of $50.80 and a high of $86.76.

The latest earnings report from Cogent Communications was announced on November 7, where it reported an earnings per share (EPS) of ($1.33), slightly surpassing the consensus estimate of ($1.34) by $0.01. The reported revenue for the quarter was $257.20 million, which was slightly below the expected figure of $258.69 million. The company also indicated a net margin of 4.26% and a negative return on equity of 32.14%. Year-over-year, revenue has decreased by 6.6%, compared to the previous year's earnings per share of ($1.13). Analysts predict that Cogent Communications will report an average EPS of -4.46 for the ongoing fiscal year.

Cogent Communications Announces Dividend Increase

Recently, Cogent Communications declared a quarterly dividend that will be distributed on December 6. Investors who hold shares on the record date of November 22 will receive a dividend of $0.995 per share, representing an increase from the prior quarterly dividend of $0.99. This dividend translates to an annualized yield of 4.75% and total dividends of $3.98 per share, with the ex-dividend date set for November 22. Notably, the company's dividend payout ratio stands at an exceptionally high 432.97%.

Insider Transactions within Cogent Communications

In recent insider activity, CEO Dave Schaeffer sold 60,000 shares of the company on August 27, executing the transaction at an average price of $72.82, amounting to a total of $4,369,200. This sale did not significantly alter his ownership level, and he retains approximately 4,373,038 shares valued at around $318,444,627. A legal filing with the SEC regarding this transaction is accessible to the public. On September 4, Chief Revenue Officer James Bubeck sold 1,920 shares at an average price of $69.77, totaling $133,958.40. Following this sale, he now holds 50,982 shares valued at $3,557,014.14. Insiders have reportedly sold a total of 64,870 shares valued at roughly $4,716,057 in the past ninety days, with insiders owning about 11.40% of the stock.

Understanding Cogent Communications

Cogent Communications Holdings, Inc. provides a range of services including high-speed Internet access, private network capabilities, and data center colocation across various regions such as North America, Europe, Oceania, South America, and Africa. Its services cater to diverse clients including law firms, financial services, healthcare providers, educational institutions, and other businesses needing reliable Internet service and private networking solutions.

Wealth, Investment, Stocks