Dave Schaeffer, the Chairman, CEO, and President of Cogent Communications (NASDAQ:CCOI) Holdings, Inc. (NASDAQ:CCOI), sold a significant portion of company stock according to a recent SEC filing. On November 25 and November 26, Schaeffer sold a total of 60,000 shares of Cogent Communications common stock. The transactions were executed at prices ranging from $82.685 to $83.762 per share, amounting to a total sale value of approximately $4.99 million.
Following these transactions, Schaeffer retains ownership of 4,248,038 shares of the company's stock. These sales were reported in a Form 4 filing with the Securities and Exchange Commission, which is a standard disclosure for company insiders.
In other recent news, Cogent Communications Holdings, Inc. reported mixed financial results for the third quarter of 2024, with a total revenue of $257.2 million, and an increase in EBITDA to $60.9 million. Despite a decline in revenue due to the reduction of low-margin off-net connections and a decrease in the T-Mobile commercial services agreement, Cogent realized significant cost savings from the Sprint Global Markets acquisition. The company's quarterly dividend also continued its trend of consecutive increases, rising to $0.995 per share. UBS recently initiated coverage on Cogent Communications stock with a Buy rating, anticipating growth from the acquisition of Sprint's wireline assets. The firm projects over $500 million in EBITDA for Cogent by 2028, exceeding current street estimates. Cogent's growth trajectory is seen as compelling, supported by the expansion of legacy services and high-margin wave growth. Despite challenges, Cogent remains optimistic, citing strong market demand for its data center facilities and interest in long-term leases. Transactions related to data center leases or sales are expected before June 2025.
InvestingPro Insights
While Dave Schaeffer's recent stock sale may raise eyebrows, it's important to consider Cogent Communications' broader financial picture. According to InvestingPro data, the company boasts a market capitalization of $3.94 billion and has demonstrated strong revenue growth of 24.03% over the last twelve months as of Q3 2024. This growth trajectory aligns with an InvestingPro Tip highlighting that Cogent has maintained dividend payments for 13 consecutive years, signaling financial stability.
However, investors should note that Cogent is trading at a high P/E ratio of 99.49, which an InvestingPro Tip confirms by stating the company is "Trading at a high earnings multiple." This valuation metric suggests the stock may be priced at a premium relative to its earnings. Additionally, the company's dividend yield stands at an attractive 4.82%, which could be a factor in the stock's recent performance, with a 43.09% price total return over the past six months.
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. These additional tips could be particularly valuable in light of the insider selling activity reported in the article.
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