WASHINGTON, D.C. — Thaddeus Weed, Vice President and Chief Financial Officer of Cogent Communications (NASDAQ:CCOI) Holdings, Inc. (NASDAQ:CCOI), recently sold 4,800 shares of the company's common stock. The transaction, which took place on December 2, 2024, was executed at a price of $81.58 per share, totaling approximately $391,584. The sale comes as Cogent's stock has shown remarkable strength, posting a 49% gain over the past six months, according to InvestingPro data.
Prior to this sale, Weed acquired 2,400 shares on December 1, 2024, through the vesting of restricted stock units. These shares were awarded based on the company's achievement of certain performance goals set by the board and its compensation committee. After these transactions, Weed holds 88,500 shares of Cogent Communications, which currently trades at premium valuations across multiple metrics and appears overvalued based on InvestingPro's Fair Value analysis.
Investors often keep a close eye on insider transactions like these to gauge the confidence of company executives in the firm's future performance. The company has maintained its dividend payments for 13 consecutive years, demonstrating consistent shareholder returns despite current high valuation multiples. For deeper insights into Cogent's financial health and valuation metrics, investors can access comprehensive analysis through the Pro Research Report available on InvestingPro.
In other recent news, Cogent Communications reported mixed financial results for Q3 2024, with a total revenue of $257.2 million and a rise in EBITDA to $60.9 million. Despite facing 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 saw an uptick in wavelength and IPv4 leasing revenue. UBS initiated coverage on Cogent Communications with a Buy rating, anticipating growth from the previous acquisition of Sprint's wireline assets. The firm projects a performance increase for 2025 and beyond, forecasting over $500 million in EBITDA for Cogent by 2028, exceeding current street estimates. Furthermore, UBS suggests that Cogent's growth is supported by the expansion of legacy services, stabilization of Sprint losses, and high-margin wave growth. Cogent also plans to add over 100 carrier-neutral data centers annually, 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, such as an 18.2% year-over-year decline in enterprise business revenues, Cogent remains optimistic, citing strong market demand for its data center facilities and interest in long-term leases.
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