Cogent Communications director Howard sells $287,070 in stock

WASHINGTON—Eve N. Howard, a director at Cogent Communications (NASDAQ:) Holdings, Inc. (NASDAQ:CCOI), sold 3,500 shares of the company's common stock on November 11, according to a recent SEC filing. The shares were sold at a price of $82.02 each, totaling $287,070. Following this transaction, Howard holds 10,059 shares in the company.

Cogent Communications, headquartered in Washington, D.C., is known for providing high-speed internet services. The company's stock transactions are closely monitored by investors as part of their evaluation of corporate governance and insider confidence in the company's future performance.

In other recent news, Cogent Communications reported mixed financial results for the third quarter of 2024, with total revenue of $257.2 million and an increase in EBITDA to $60.9 million. Despite a decline in revenue due to the reduction of low-margin off-net connections and a decrease in the T-Mobile commercial services agreement, the company realized significant cost savings from the Sprint Global Markets acquisition and experienced a surge in wavelength and IPv4 leasing revenue. Furthermore, Cogent's quarterly dividend continued its trend of consecutive increases, rising to $0.995 per share.

UBS initiated coverage on Cogent Communications with a Buy rating, anticipating that the company will benefit from its previous acquisition of Sprint's wireline assets. The firm projects a performance increase for 2025 and beyond as network reconfiguration efforts are finalized. Even though a reduction in the 2028 wave revenue target is anticipated due to execution risks, UBS still forecasts over $500 million in EBITDA for Cogent by 2028, surpassing current street estimates of $464 million.

Despite challenges, including an 18.2% year-over-year decline in enterprise business revenues and a 14.8% decrease in off-net revenue, Cogent remains optimistic, citing strong market demand for its data center facilities and interest in long-term leases. Transactions related to data center leases or sales are expected before June 2025. These recent developments position Cogent Communications favorably for future financial performance and shareholder returns.

InvestingPro Insights

Following Eve N. Howard's recent stock sale, investors may find additional context in Cogent Communications' financial metrics and market performance. According to InvestingPro data, Cogent's market capitalization stands at $3.7 billion, reflecting its significant presence in the high-speed internet services sector.

The company's stock has shown strong momentum, with a 38.48% price total return over the past six months. This aligns with an InvestingPro Tip indicating a "large price uptick over the last six months." However, investors should note that the stock has experienced a 7.86% decline in the past week, which InvestingPro identifies as "stock has taken a big hit over the last week."

Cogent's dividend policy may be of particular interest to income-focused investors. The company boasts a dividend yield of 5.06% and has raised its dividend for 13 consecutive years, as highlighted by an InvestingPro Tip. This consistent dividend growth could signal management's confidence in the company's financial stability and cash flow generation.

While the recent insider sale might raise questions, it's worth considering that Cogent's revenue growth stands at 24.03% for the last twelve months, indicating robust top-line performance. However, the company faces challenges, with operating income in negative territory at -$197.77 million for the same period.

Investors seeking a more comprehensive analysis can access additional insights through InvestingPro, which offers 13 more tips for Cogent Communications, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.