Cogent Communications CEO Dave Schaeffer sells $2.6 million in stock

Published 16/06/2025, 15:08
Cogent Communications CEO Dave Schaeffer sells $2.6 million in stock

Dave Schaeffer, the Chairman, CEO, and President of Cogent Communications Holdings, Inc. (NASDAQ:CCOI), sold a significant portion of his common stock holdings, according to a recent SEC filing. On June 13, Schaeffer sold a total of 55,000 shares, generating approximately $2,607,203. The shares were sold at prices ranging from $47.3362 to $47.4187 per share. This transaction comes as the stock has declined 36% over the past six months, though the company maintains an impressive 8.6% dividend yield and has raised its dividend for 13 consecutive years, according to InvestingPro data. Following these transactions, Schaeffer retains ownership of 3,426,721 shares in the company. While the company operates with a significant debt burden, InvestingPro analysis reveals that its liquid assets exceed short-term obligations, with a current ratio of 1.49. For deeper insights into CCOI’s valuation and financial health metrics, investors can access the comprehensive Pro Research Report, which provides detailed analysis of over 1,400 US stocks.

In other recent news, Cogent Communications Holdings, Inc. reported its first-quarter 2025 earnings, which fell short of analyst expectations. The company announced an earnings per share (EPS) of -1.09 USD, missing the forecast of -1.05 USD, and revenue of 247 million USD, below the projected 251.36 million USD. Despite these results, Cogent saw a 1.9% increase in adjusted EBITDA to 68.8 million USD and a significant improvement in gross margin by 790 basis points compared to the previous year. In a strategic financial move, Cogent announced a $600 million senior secured notes offering, with plans to use part of the proceeds to redeem existing notes and for general corporate purposes.

Analyst activity around Cogent included a revision by Citi, which lowered the company’s stock price target to $67 while maintaining a Buy rating, citing mixed performance across its verticals. JPMorgan also adjusted its price target to $62, maintaining a Neutral rating due to weaker first-quarter results and revenue declines. Meanwhile, Cogent made amendments to its incentive award plan and bylaws, increasing shares available for issuance and adjusting its board size, following stockholder approval at its Annual Meeting.

Additionally, Cogent’s efforts to monetize its data centers are advancing, with several letters of intent moving towards contract negotiations. The company’s ongoing adjustments, including slowing dividend growth due to leverage concerns, reflect its strategic focus on improving financial metrics and maintaining operational efficiency.

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