In a recent transaction, Bath Blake, a director at Cogent Communications (NASDAQ:CCOI) Holdings, Inc. (NASDAQ:CCOI), sold a significant portion of the company's stock. On November 21, Blake sold 6,220 shares of common stock at an average price of $83.6921 per share, amounting to a total transaction value of approximately $520,564. Following this sale, Blake retains ownership of 10,000 shares in the company. This transaction was disclosed in a Form 4 filing with the Securities and Exchange Commission.
In other recent news, Cogent Communications reported its Q3 2024 financial results, with total revenue amounting to $257.2 million and an increase in EBITDA to $60.9 million. Despite a decline in certain revenues, the company realized significant cost savings from the Sprint Global Markets acquisition and witnessed a surge in wavelength and IPv4 leasing revenue. UBS initiated coverage on Cogent Communications with a Buy rating due to the anticipated benefits from the Sprint acquisition. The UBS analyst expects Cogent's growth trajectory to be compelling, forecasting over $500 million in EBITDA for Cogent by 2028.
Furthermore, Cogent plans to add over 100 carrier-neutral data centers annually for the next several years, focusing on serving small and medium-sized businesses in North American multi-tenant office buildings and expanding profitable services for large enterprise customers. Despite challenges such as an 18.2% year-over-year decline in enterprise business revenues and a 14.8% decrease in off-net revenue, Cogent remains optimistic due to strong market demand for its data center facilities. Transactions related to data center leases or sales are expected before June 2025, according to recent reports.
InvestingPro Insights
The recent stock sale by director Bath Blake comes at a time when Cogent Communications Holdings, Inc. (NASDAQ:CCOI) is trading near its 52-week high, with the stock price at 96.43% of its peak. This aligns with an InvestingPro Tip indicating that CCOI has experienced a large price uptick over the last six months, reflected in the impressive 40.23% price total return over that period.
Investors should note that while the company boasts a strong dividend history, having raised its dividend for 13 consecutive years according to InvestingPro Tips, it currently trades at high valuation multiples. The P/E ratio stands at 100.76, suggesting the stock may be priced at a premium compared to earnings. This high valuation is further supported by InvestingPro Tips highlighting that CCOI is trading at high EBITDA and revenue valuation multiples.
Despite these high valuations, Cogent Communications offers an attractive dividend yield of 4.89%, with a dividend growth of 5.29% over the last twelve months. This could be particularly appealing to income-focused investors in the current market environment.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips on Cogent Communications, providing deeper insights into the company's financial health and market position.
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