WASHINGTON, D.C.—Sheryl Lynn Kennedy, a director at Cogent Communications (NASDAQ:CCOI) Holdings, Inc. (NASDAQ:CCOI), recently sold 1,350 shares of the company's common stock. The shares were sold at an average price of $80.5753 each, amounting to a total transaction value of $108,776. Following this sale, Kennedy retains ownership of 10,318 shares in the company. This transaction was disclosed in a filing with the Securities and Exchange Commission on November 12, 2024.
In other recent news, Cogent Communications Holdings, Inc. reported mixed results for its third quarter of 2024. The company announced a total revenue of $257.2 million and an increased EBITDA of $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. Notably, the firm realized significant cost savings of $165 million from the Sprint Global Markets acquisition and experienced a surge in wavelength and IPv4 leasing revenue.
In addition to these developments, Cogent Communications increased its quarterly dividend, marking the 49th consecutive rise. The company also outlined future plans, including annual expansion of adjusted EBITDA margins by about 100 basis points and the addition of over 100 carrier-neutral data centers annually for the next several years. Despite facing challenges with net services and a decline in enterprise business revenues, Cogent Communications is strategically positioned to serve small and medium-sized businesses and is focused on expanding profitable services for large enterprise customers. These recent developments reflect the company's ongoing commitment to growth and shareholder value.
InvestingPro Insights
The recent insider sale by Sheryl Lynn Kennedy at Cogent Communications Holdings, Inc. (NASDAQ:CCOI) comes at a time when the company's stock is showing strong performance. According to InvestingPro data, CCOI has experienced a significant price uptick over the last six months, with a 39.1% total return in that period. This robust performance is part of a larger trend, as the stock has delivered a 30.9% total return over the past year.
Despite the positive stock performance, InvestingPro Tips highlight some potential concerns for investors. The company is currently trading at a high earnings multiple, with a P/E ratio of 97.24. This valuation metric suggests that the stock may be priced at a premium compared to its earnings. Additionally, net income is expected to drop this year, which could impact future earnings.
On a positive note, Cogent Communications has maintained its commitment to shareholder returns. An InvestingPro Tip reveals that the company has raised its dividend for 13 consecutive years, demonstrating a strong track record of increasing shareholder value. The current dividend yield stands at an attractive 4.95%, which may appeal to income-focused investors.
For those considering a deeper analysis of Cogent Communications, InvestingPro offers 12 additional tips that could provide valuable insights into the company's financial health and market position. These tips, along with real-time metrics and expert analysis, are available to InvestingPro subscribers, offering a comprehensive tool for investment decision-making.
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