Cogent Communications Holdings, Inc. (NASDAQ:CCOI) Announces $0.02 Quarterly Dividend

Cogent Communications Holdings, Inc. (NASDAQ:CCOI) declared a quarterly dividend on Wednesday, November 5th. Shareholders of record on Friday, November 21st will be given a dividend of 0.02 per share by the technology company on Monday, December 8th. This represents a c) dividend on an annualized basis and a yield of 0.3%. The ex-dividend date of this dividend is Friday, November 21st.

Cogent Communications has increased its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 14 years. Cogent Communications has a dividend payout ratio of -175.0% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Cogent Communications to earn ($2.63) per share next year, which means the company may not be able to cover its $4.06 annual dividend with an expected future payout ratio of -154.4%.

Cogent Communications Stock Down 34.9%

NASDAQ:CCOI opened at $24.95 on Friday. Cogent Communications has a twelve month low of $24.25 and a twelve month high of $86.76. The firm has a market capitalization of $1.23 billion, a price-to-earnings ratio of -5.50 and a beta of 0.77. 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 stock’s 50 day moving average price is $39.94 and its two-hundred day moving average price is $44.58.

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

Cogent Communications announced that its Board of Directors has approved a share repurchase plan on Thursday, August 7th that permits the company to repurchase $100.00 million in shares. This repurchase authorization permits the technology company to buy up to 4.6% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board of directors believes its stock is undervalued.

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.