Lewis (JO:LEWJ) Ferguson, a director at Cogent Communications (NASDAQ:CCOI) Holdings, Inc. (NASDAQ:CCOI), has sold shares of the company's common stock. According to a recent SEC filing, Ferguson disposed of 846 shares at a price of $81.762 per share, totaling $69,170. Following this transaction, Ferguson retains ownership of 18,354 shares in the company. This sale is part of Ferguson's ongoing management of his investment in Cogent Communications, a company known for its extensive communications services.
In other recent news, Cogent Communications reported mixed financial results for the third quarter of 2024. The company disclosed 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 and experienced a surge in wavelength and IPv4 leasing revenue.
UBS initiated coverage on Cogent Communications with a Buy rating, anticipating that the company will soon reap the benefits from its previous acquisition of Sprint's wireline assets. The firm projects over $500 million in EBITDA for Cogent by 2028, aligning with management's goals and exceeding current street estimates. UBS also highlights the potential for monetizing data center and IPv4 assets as an opportunity for Cogent to reduce leverage and sustain dividend growth.
In terms of company developments, Cogent anticipates an annual expansion of its adjusted EBITDA margins by approximately 100 basis points. The company also 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, Cogent remains optimistic, citing strong market demand for its data center facilities and interest in long-term leases.
InvestingPro Insights
While Director Lewis Ferguson's recent sale of Cogent Communications Holdings, Inc. (NASDAQ:CCOI) shares might raise eyebrows, it's essential to consider the broader financial picture of the company. According to InvestingPro data, Cogent's market capitalization stands at $3.82 billion, reflecting its significant presence in the communications sector.
One of the most notable InvestingPro Tips for Cogent is that the company has raised its dividend for 13 consecutive years, demonstrating a commitment to shareholder returns. This is particularly impressive given the current dividend yield of 4.97%, which is quite attractive in today's market environment.
However, investors should be aware that Cogent is trading at a high earnings multiple, with a P/E ratio of 97.42. This valuation suggests that the market has high expectations for future growth, which may explain why some insiders might choose to take profits.
It's worth noting that Cogent's revenue for the last twelve months as of Q3 2024 was $976.01 million, with a revenue growth of 24.03% over the same period. This growth is significant, although the company's quarterly revenue growth showed a decline of 8.98% in Q3 2024, indicating some recent headwinds.
For those considering an investment in Cogent, it's important to note that InvestingPro offers 12 additional tips for CCOI, providing a more comprehensive analysis of the company's financial health and market position. These insights could be valuable for investors looking to make informed decisions in light of recent insider transactions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.