Investors Buy Large Volume of Cogent Communications Call Options (NASDAQ:CCOI)

Cogent Communications Holdings, Inc. (NASDAQ:CCOI) was the target of unusually large options trading activity on Friday. Stock traders purchased 21,612 call options on the company. This represents an increase of 1,654% compared to the average daily volume of 1,232 call options.

Cogent Communications Stock Up 5.7%

Shares of CCOI stock traded up $0.96 during mid-day trading on Friday, reaching $17.64. 1,417,415 shares of the company’s stock traded hands, compared to its average volume of 963,182. The company has a quick ratio of 2.31, a current ratio of 2.31 and a debt-to-equity ratio of 49.06. The company has a market cap of $866.40 million, a P/E ratio of -3.88 and a beta of 0.77. The company’s 50-day moving average price is $38.24 and its 200-day moving average price is $43.46. Cogent Communications has a 12 month low of $15.96 and a 12 month high of $85.18.

Cogent Communications (NASDAQ:CCOI) last issued its earnings results on Thursday, November 6th. The technology company reported ($0.87) earnings per share (EPS) for the quarter, topping the consensus estimate of ($1.15) by $0.28. Cogent Communications had a negative net margin of 21.57% and a negative return on equity of 117.56%. The company had revenue of $241.95 million for the quarter, compared to analysts’ expectations of $246.13 million. During the same quarter last year, the company posted ($1.33) earnings per share. The firm’s quarterly revenue was down 5.9% on a year-over-year basis. On average, equities analysts expect that Cogent Communications will post -4.55 earnings per share for the current fiscal year.

Cogent Communications Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 8th. Investors of record on Friday, November 21st will be given a $0.02 dividend. This represents a $0.08 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend is Friday, November 21st. Cogent Communications’s dividend payout ratio is -1.96%.

Cogent Communications announced that its Board of Directors has initiated a stock buyback program on Thursday, August 7th that permits the company to repurchase $100.00 million in shares. This repurchase authorization permits the technology company to reacquire up to 4.6% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on CCOI. Royal Bank Of Canada decreased their target price on shares of Cogent Communications from $40.00 to $23.00 and set a “sector perform” rating for the company in a research report on Thursday. Wells Fargo & Company reaffirmed an “equal weight” rating and set a $27.00 price target (down from $45.00) on shares of Cogent Communications in a research note on Friday, November 7th. KeyCorp reduced their price objective on shares of Cogent Communications from $65.00 to $30.00 and set an “overweight” rating for the company in a report on Friday, November 7th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Cogent Communications in a report on Thursday. Finally, UBS Group reissued a “neutral” rating and set a $27.00 target price (down previously from $50.00) on shares of Cogent Communications in a research report on Friday, November 7th. One research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $25.71.

Insider Buying and Selling at Cogent Communications

In related news, Director Sheryl Lynn Kennedy sold 2,400 shares of Cogent Communications stock in a transaction that occurred on Tuesday, November 11th. The shares were sold at an average price of $21.34, for a total transaction of $51,216.00. Following the sale, the director directly owned 10,012 shares in the company, valued at $213,656.08. This trade represents a 19.34% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Henry W. Kilmer sold 2,400 shares of the business’s stock in a transaction on Friday, September 5th. The stock was sold at an average price of $36.99, for a total transaction of $88,776.00. Following the completion of the sale, the vice president directly owned 36,200 shares in the company, valued at approximately $1,339,038. This represents a 6.22% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 6,800 shares of company stock valued at $212,692 over the last quarter. Company insiders own 11.40% of the company’s stock.

Institutional Investors Weigh In On Cogent Communications

Several hedge funds and other institutional investors have recently modified their holdings of CCOI. AlphaQuest LLC purchased a new stake in Cogent Communications in the first quarter worth $36,000. Farther Finance Advisors LLC grew its holdings in Cogent Communications by 297.8% during the 2nd quarter. Farther Finance Advisors LLC now owns 740 shares of the technology company’s stock worth $36,000 after acquiring an additional 554 shares in the last quarter. Atlantic Union Bankshares Corp purchased a new position in Cogent Communications during the 2nd quarter valued at about $40,000. Byrne Asset Management LLC bought a new stake in shares of Cogent Communications in the 2nd quarter valued at about $41,000. Finally, Resources Management Corp CT ADV purchased a new stake in shares of Cogent Communications in the 1st quarter worth approximately $48,000. 92.45% of the stock is currently owned by hedge funds and other institutional investors.

About Cogent Communications

Cogent Communications Holdings, Inc, through its subsidiaries, provides high-speed Internet access, private network, and data center colocation space services in North America, Europe, Oceania, South America, and Africa. The company offers on-net Internet access and private network services to law firms, financial services firms, and advertising and marketing firms, as well as heath care providers, educational institutions and other professional services businesses, other Internet service providers, telephone companies, cable television companies, web hosting companies, media service providers, mobile phone operators, content delivery network companies, and commercial content and application service providers.