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

Cogent Communications Holdings, Inc. (NASDAQ:CCOI) declared a quarterly dividend on Wednesday, August 5th. Stockholders of record on Friday, August 21st will be paid a dividend of 0.02 per share by the technology company on Friday, September 4th. This represents a c) dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Friday, August 21st.

Cogent Communications has increased its dividend payment by an average of 0.0%annually over the last three years and has increased its dividend every year for the last 14 years. Cogent Communications has a dividend payout ratio of -3.4% 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 ($3.41) per share next year, which means the company may not be able to cover its $0.08 annual dividend with an expected future payout ratio of -2.3%.

Cogent Communications Trading Down 15.2%

Shares of NASDAQ:CCOI traded down $1.96 during midday trading on Thursday, hitting $10.91. 3,291,105 shares of the stock were exchanged, compared to its average volume of 1,240,151. Cogent Communications has a twelve month low of $10.10 and a twelve month high of $45.69. The company has a 50 day moving average price of $14.03 and a 200-day moving average price of $18.71. The stock has a market cap of $546.35 million, a P/E ratio of -3.07 and a beta of 0.80.

Cogent Communications (NASDAQ:CCOI) last issued its quarterly earnings data on Thursday, August 6th. The technology company reported $1.38 EPS for the quarter, beating analysts’ consensus estimates of ($1.00) by $2.38. Cogent Communications had a negative net margin of 17.53% and a negative return on equity of 842.48%. The firm had revenue of $235.56 million for the quarter, compared to analysts’ expectations of $239.55 million. During the same period in the prior year, the company earned ($1.21) EPS. The firm’s revenue was down 4.4% on a year-over-year basis. On average, equities research analysts expect that Cogent Communications will post -4.25 earnings per share for the current year.

Insider Activity at Cogent Communications

In related news, VP Henry W. Kilmer sold 2,400 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $17.01, for a total value of $40,824.00. Following the completion of the sale, the vice president directly owned 38,600 shares in the company, valued at approximately $656,586. The trade was a 5.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Thaddeus Gerard Weed sold 4,850 shares of the company’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $16.79, for a total transaction of $81,431.50. Following the transaction, the chief financial officer directly owned 197,900 shares of the company’s stock, valued at $3,322,741. This trade represents a 2.39% decrease in their position. The disclosure for this sale is available in the SEC filing. 4.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Cogent Communications

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its position in Cogent Communications by 4.1% during the fourth quarter. Vanguard Group Inc. now owns 5,580,271 shares of the technology company’s stock valued at $120,311,000 after buying an additional 217,450 shares in the last quarter. Turtle Creek Asset Management Inc. lifted its holdings in shares of Cogent Communications by 64.9% during the 3rd quarter. Turtle Creek Asset Management Inc. now owns 4,603,933 shares of the technology company’s stock valued at $176,561,000 after acquiring an additional 1,811,222 shares in the last quarter. State Street Corp boosted its position in Cogent Communications by 6.8% during the 4th quarter. State Street Corp now owns 2,070,132 shares of the technology company’s stock worth $44,632,000 after purchasing an additional 132,454 shares during the period. Park West Asset Management LLC acquired a new stake in Cogent Communications in the 4th quarter valued at $30,380,000. Finally, Invesco Ltd. grew its stake in shares of Cogent Communications by 39.8% in the third quarter. Invesco Ltd. now owns 1,402,612 shares of the technology company’s stock valued at $53,790,000 after buying an additional 399,339 shares in the last quarter. 92.45% of the stock is currently owned by institutional investors and hedge funds.

About Cogent Communications

Cogent Communications (NASDAQ:CCOI) is a multinational Internet service provider specializing in high-speed Internet access and data transport services. The company operates one of the largest Tier 1 IP networks in the world, offering wholesale and enterprise customers reliable, low-latency connectivity. Cogent’s core services include dedicated Internet access, Ethernet transport, wavelength services, and MPLS-based IP Virtual Private Networks, all delivered over its privately owned, fiber-optic backbone.

In addition to network connectivity, Cogent provides data center colocation and managed services designed to support businesses with demanding bandwidth and redundancy requirements.