Henry Kilmer, Vice President of Network Strategy at Cogent Communications (NASDAQ:CCOI) Holdings, Inc. (NASDAQ:CCOI), reported an acquisition of 2,400 shares of common stock on December 1, 2024. These shares were acquired as a result of the vesting of restricted stock units granted based on the company's performance goals. Following this transaction, Kilmer holds a total of 38,600 shares directly. The transaction was processed at a price of $0 per share, reflecting the nature of the restricted stock unit vesting.According to InvestingPro data, Cogent's stock has shown remarkable strength with a 45% gain over the past six months. The company maintains a consistent 5% dividend yield and has raised its dividend for 13 consecutive years. Based on InvestingPro's Fair Value analysis, the stock currently appears to be trading above its intrinsic value. For deeper insights into Cogent's valuation and 12 additional key metrics, explore the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Cogent Communications has been under the spotlight following its Q3 2024 financial results and the positive outlook from UBS. The company reported 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, with the firm suggesting that the company will soon reap benefits from its previous acquisition of Sprint's wireline assets. UBS anticipates an 8% revenue and over 40% EBITDA compound annual growth rate for Cogent, excluding T-Mobile reimbursements. The firm also highlights the potential for monetizing data center and IPv4 assets as an opportunity for Cogent to reduce leverage and sustain dividend growth.
Despite an 18.2% year-over-year decline in enterprise business revenues and a 14.8% decrease in off-net revenue, Cogent remains optimistic about its future prospects. The company 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. Transactions related to data center leases or sales are expected before June 2025.
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