Cogent Communications Holdings Inc (NASDAQ:CCOI) Plans Dividend Increase – $0.62 Per Share

Cogent Communications Holdings Inc (NASDAQ:CCOI) declared a quarterly dividend on Wednesday, August 7th, NASDAQ reports. Investors of record on Friday, August 23rd will be given a dividend of 0.62 per share by the technology company on Monday, September 9th. This represents a $2.48 dividend on an annualized basis and a dividend yield of 4.20%. The ex-dividend date of this dividend is Thursday, August 22nd. This is a boost from Cogent Communications’s previous quarterly dividend of $0.60.

Cogent Communications has increased its dividend by an average of 13.2% per year over the last three years and has raised its dividend every year for the last 7 years. Cogent Communications has a payout ratio of 375.8% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Cogent Communications to earn $0.97 per share next year, which means the company may not be able to cover its $2.48 annual dividend with an expected future payout ratio of 255.7%.

NASDAQ CCOI opened at $59.00 on Wednesday. Cogent Communications has a 12 month low of $42.40 and a 12 month high of $64.24. The stock has a market cap of $2.72 billion, a price-to-earnings ratio of 93.65, a PEG ratio of 9.44 and a beta of 0.56. The company’s 50 day moving average is $61.02 and its two-hundred day moving average is $56.25.

Cogent Communications (NASDAQ:CCOI) last released its earnings results on Thursday, August 8th. The technology company reported $0.16 EPS for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.06). Cogent Communications had a negative return on equity of 20.58% and a net margin of 5.97%. The firm had revenue of $134.79 million for the quarter, compared to the consensus estimate of $136.12 million. During the same quarter in the previous year, the business posted $0.14 EPS. Cogent Communications’s revenue was up 4.2% on a year-over-year basis. Sell-side analysts predict that Cogent Communications will post 0.77 earnings per share for the current fiscal year.

A number of research firms have commented on CCOI. CIBC restated a “market perform” rating on shares of Cogent Communications in a research note on Friday, May 10th. Deutsche Bank cut shares of Cogent Communications from a “buy” rating to a “hold” rating in a research note on Thursday, May 2nd. ValuEngine cut shares of Cogent Communications from a “buy” rating to a “hold” rating in a research note on Thursday, August 8th. Zacks Investment Research cut shares of Cogent Communications from a “hold” rating to a “sell” rating in a research note on Monday, August 12th. Finally, BidaskClub upgraded shares of Cogent Communications from a “hold” rating to a “buy” rating in a research note on Wednesday. Two research analysts have rated the stock with a sell rating, seven have given a hold rating and three have assigned a buy rating to the stock. The company currently has a consensus rating of “Hold” and a consensus target price of $58.17.

In related news, CFO Thaddeus Gerard Weed sold 5,000 shares of the firm’s stock in a transaction on Wednesday, June 5th. The shares were sold at an average price of $58.50, for a total value of $292,500.00. Following the completion of the transaction, the chief financial officer now directly owns 73,950 shares of the company’s stock, valued at $4,326,075. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CRO James Bubeck sold 1,920 shares of the firm’s stock in a transaction on Monday, June 3rd. The shares were sold at an average price of $57.41, for a total transaction of $110,227.20. Following the completion of the transaction, the executive now directly owns 38,802 shares of the company’s stock, valued at $2,227,622.82. The disclosure for this sale can be found here. In the last quarter, insiders have sold 19,485 shares of company stock worth $1,142,436. Company insiders own 10.17% of the company’s stock.

About Cogent Communications

Cogent Communications Holdings, Inc, through its subsidiaries, provides high-speed Internet access, private network, and data center colocation space services primarily to small and medium-sized businesses, communications service providers, and other bandwidth-intensive organizations in North America, Europe, Asia, Australia, and Brazil.

Featured Story: Day Trading

Dividend History for Cogent Communications (NASDAQ:CCOI)

Receive News & Ratings for Cogent Communications Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cogent Communications and related companies with MarketBeat.com's FREE daily email newsletter.