Cogent Communications CFO clarifies stock sale error

Published 19/05/2025, 18:46
Cogent Communications CFO clarifies stock sale error

Thaddeus Gerard Weed, Vice President and CFO of Cogent Communications Holdings, Inc. (NASDAQ:CCOI), recently filed an amended SEC Form 4 to correct a previously reported transaction. The stock, currently trading at $50.16, has experienced a significant decline of 35% over the past six months, according to InvestingPro data. The initial filing inaccurately stated that Weed sold 100 shares of common stock on May 16, 2025. However, this sale did not occur, and the correction reflects that no shares were sold. Following this clarification, Weed continues to beneficially own 103,000 shares of Cogent Communications stock. The company maintains a notable 7.99% dividend yield and has raised its dividend for 13 consecutive years. For deeper insights into insider trading patterns and comprehensive financial analysis, access the full InvestingPro Research Report, available for over 1,400 US stocks.

In other recent news, Cogent Communications reported its first-quarter 2025 earnings, revealing a slight miss on both earnings per share (EPS) and revenue compared to analyst forecasts. The company’s EPS stood at -$1.09, against a forecast of -$1.05, while revenue reached $247 million, falling short of the projected $251.36 million. Despite these results, Cogent demonstrated resilience with a 1.9% increase in adjusted EBITDA to $68.8 million and a significant improvement in gross margin by 790 basis points year-over-year. The company continues to focus on data center monetization, with four letters of intent advancing towards initial contract negotiations.

JPMorgan analyst Philip Cusick revised the price target for Cogent Communications, lowering it to $62 from $76, while maintaining a Neutral rating. This adjustment follows the weaker first-quarter results, including a decline in revenue due to the termination of unprofitable Sprint deals. Cusick expressed optimism about potential data center monetization, which could positively impact concerns over the company’s leverage.

Additionally, Cogent Communications announced updates following its Annual Meeting, where stockholders approved amendments to its incentive award plan and bylaws, and elected directors. These changes include increasing the number of shares available for issuance by 1.5 million and extending the date for awards under the plan to 2035. The company also reported the approval of Ernst & Young LLP as the independent registered public accountants for the fiscal year ending December 31, 2025.

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