Cogent Communications Holdings, Inc. (NASDAQ:CCOI) Raises Dividend to $0.88 Per Share

Cogent Communications Holdings, Inc. (NASDAQ:CCOIGet Rating) declared a quarterly dividend on Monday, May 2nd, Wall Street Journal reports. Investors of record on Friday, May 13th will be paid a dividend of 0.88 per share by the technology company on Friday, May 27th. This represents a $3.52 dividend on an annualized basis and a yield of 5.86%. The ex-dividend date is Thursday, May 12th. This is a positive change from Cogent Communications’s previous quarterly dividend of $0.86.

Cogent Communications has raised its dividend payment by an average of 14.4% per year over the last three years and has increased its dividend every year for the last 10 years. Cogent Communications has a payout ratio of 278.0% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Cogent Communications to earn $1.26 per share next year, which means the company may not be able to cover its $3.42 annual dividend with an expected future payout ratio of 271.4%.

Shares of NASDAQ CCOI opened at $60.08 on Tuesday. Cogent Communications has a twelve month low of $56.53 and a twelve month high of $80.50. The firm has a fifty day simple moving average of $64.37 and a 200 day simple moving average of $68.84. The company has a market capitalization of $2.88 billion, a PE ratio of 93.88 and a beta of 0.31.

Cogent Communications (NASDAQ:CCOIGet Rating) last announced its earnings results on Friday, April 29th. The technology company reported $0.02 earnings per share for the quarter, missing analysts’ consensus estimates of $0.24 by ($0.22). Cogent Communications had a negative return on equity of 6.63% and a net margin of 5.15%. The firm had revenue of $149.20 million for the quarter, compared to the consensus estimate of $149.10 million. During the same period in the prior year, the business earned $0.41 EPS. Cogent Communications’s quarterly revenue was up 1.6% on a year-over-year basis. As a group, analysts anticipate that Cogent Communications will post 0.91 earnings per share for the current year.

Several research firms have weighed in on CCOI. TheStreet downgraded shares of Cogent Communications from a “b-” rating to a “c” rating in a research note on Friday. StockNews.com began coverage on shares of Cogent Communications in a research note on Thursday, March 31st. They issued a “hold” rating for the company. JPMorgan Chase & Co. raised shares of Cogent Communications from a “neutral” rating to an “overweight” rating and set a $82.00 price target for the company in a research note on Thursday, February 10th. Citigroup decreased their price target on shares of Cogent Communications from $73.00 to $70.00 in a research note on Monday. Finally, Credit Suisse Group decreased their price target on shares of Cogent Communications from $89.00 to $80.00 and set an “outperform” rating for the company in a research note on Monday, January 24th. Two research analysts have rated the stock with a sell rating, two have assigned a hold rating and four have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Cogent Communications has a consensus rating of “Hold” and a consensus target price of $75.38.

In related news, VP John B. Chang sold 600 shares of the business’s stock in a transaction dated Thursday, March 17th. The shares were sold at an average price of $62.96, for a total transaction of $37,776.00. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CRO James Bubeck sold 1,920 shares of the business’s stock in a transaction dated Tuesday, March 1st. The stock was sold at an average price of $62.94, for a total transaction of $120,844.80. The disclosure for this sale can be found here. Over the last three months, insiders have sold 3,170 shares of company stock valued at $201,846. 11.00% of the stock is currently owned by insiders.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. boosted its stake in Cogent Communications by 10.2% in the fourth quarter. BlackRock Inc. now owns 7,072,055 shares of the technology company’s stock valued at $517,534,000 after acquiring an additional 654,635 shares during the last quarter. Vident Investment Advisory LLC boosted its stake in Cogent Communications by 64.7% in the fourth quarter. Vident Investment Advisory LLC now owns 4,667 shares of the technology company’s stock valued at $342,000 after acquiring an additional 1,833 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in Cogent Communications by 42.2% in the fourth quarter. Goldman Sachs Group Inc. now owns 569,283 shares of the technology company’s stock valued at $41,659,000 after acquiring an additional 168,823 shares during the last quarter. Deutsche Bank AG boosted its stake in Cogent Communications by 1.6% in the fourth quarter. Deutsche Bank AG now owns 33,074 shares of the technology company’s stock valued at $2,420,000 after acquiring an additional 511 shares during the last quarter. Finally, California State Teachers Retirement System raised its position in shares of Cogent Communications by 2.5% in the fourth quarter. California State Teachers Retirement System now owns 59,504 shares of the technology company’s stock valued at $4,355,000 after purchasing an additional 1,471 shares during the period. Hedge funds and other institutional investors own 86.06% of the company’s stock.

About Cogent Communications (Get Rating)

Cogent Communications Holdings, Inc, through its subsidiaries, provides high-speed Internet access, private network, and data center colocation space services in North America, Europe, Asia, South America, Australia, 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.

See Also

Dividend History for Cogent Communications (NASDAQ:CCOI)

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