Is Cogent Communications Stock a Good Investment?

Cogent Communications Investment Advice

  CCOI
To provide specific investment advice or recommendations on Cogent Communications Group stock, we recommend investors consider the following general factors when evaluating Cogent Communications Group. This will help you to make an informed decision on whether to include Cogent Communications in one of your diversified portfolios:
  • Examine Cogent Communications' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Cogent Communications' leadership team and their track record. Good management can help Cogent Communications navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Diversified Telecommunication Services space and any emerging trends that could impact Cogent Communications' business and its evolving consumer preferences.
  • Compare Cogent Communications' performance and market position to its competitors. Analyze how Cogent Communications is positioned in terms of product offerings, innovation, and market share.
  • Check if Cogent Communications pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Cogent Communications' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Cogent Communications Group stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Cogent Communications Group is a good investment.
 
Sell
 
Buy
Strong Hold
Macroaxis provides unbiased investment recommendation on Cogent Communications that should be used to complement current analysts and expert consensus on Cogent Communications Group. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Cogent Communications is not overpriced, please confirm all Cogent Communications fundamentals, including its shares owned by insiders, ebitda, cash flow from operations, as well as the relationship between the price to book and total debt . Given that Cogent Communications has a price to earning of 166.38 X, we suggest you to validate Cogent Communications Group market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance

InsignificantDetails

Volatility

Very steadyDetails

Hype Condition

Over hypedDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

Examine Cogent Communications Stock

Researching Cogent Communications' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 97.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings (P/E) ratio of 166.38. Cogent Communications last dividend was issued on the 22nd of November 2024. The entity had 1:20 split on the 24th of March 2005.
To determine if Cogent Communications is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Cogent Communications' research are outlined below:
Over 97.0% of the company shares are held by institutions such as insurance companies
On 6th of December 2024 Cogent Communications paid $ 0.995 per share dividend to its current shareholders
Latest headline from MacroaxisInsider: Acquisition by John Chang of 485 shares of Cogent Communications subject to Rule 16b-3
Cogent Communications uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Cogent Communications Group. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Cogent Communications' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
22nd of February 2024
Upcoming Quarterly Report
View
2nd of May 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
22nd of February 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View
Earnings surprises can significantly impact Cogent Communications' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Cogent Communications' investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2016-05-05
2016-03-310.070.080.0114 
2013-05-07
2013-03-310.020.01-0.0150 
2012-05-03
2012-03-31-0.04-0.05-0.0125 
2011-11-03
2011-09-300.020.01-0.0150 
2011-05-05
2011-03-31-0.02-0.010.0150 
2009-11-09
2009-09-30-0.08-0.070.0112 
2012-11-06
2012-09-300.01-0.0021-0.0121121 
2019-05-02
2019-03-310.180.20.0211 

Know Cogent Communications' Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Cogent Communications is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Cogent Communications Group backward and forwards among themselves. Cogent Communications' institutional investor refers to the entity that pools money to purchase Cogent Communications' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Morgan Stanley - Brokerage Accounts2024-09-30
918.6 K
Renaissance Technologies Corp2024-09-30
895.2 K
Fmr Inc2024-09-30
800.8 K
Copeland Capital Management, Llc2024-09-30
759.3 K
Broad Run Investment Management, Llc2024-09-30
707 K
Senator Investment Group Lp2024-09-30
664.2 K
Westwood Holdings Group Inc2024-09-30
620.1 K
Boston Financial Mangement Inc2024-09-30
609.8 K
Amvescap Plc.2024-09-30
605.1 K
Blackrock Inc2024-06-30
6.8 M
Vanguard Group Inc2024-09-30
5.1 M
Note, although Cogent Communications' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Cogent Communications' market capitalization trends

The company currently falls under 'Mid-Cap' category with a current market capitalization of 3.73 B.

Market Cap

3.78 Billion

Cogent Communications' profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets 0.46  0.49 
Return On Capital Employed(0.05)(0.04)
Return On Assets 0.40  0.42 
Return On Equity 2.09  2.19 
The company has Profit Margin (PM) of 0.04 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of (0.24) %, which suggests for every $100 dollars of sales, it generated a net operating loss of $0.24.
Determining Cogent Communications' profitability involves analyzing its financial statements and using various financial metrics to determine if Cogent Communications is a good buy. For example, gross profit margin measures Cogent Communications' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Cogent Communications' profitability and make more informed investment decisions.

Cogent Communications' Earnings Breakdown by Geography

Evaluate Cogent Communications' management efficiency

Cogent Communications has return on total asset (ROA) of (0.0401) % which means that it has lost $0.0401 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1029 %, meaning that it created $0.1029 on every $100 dollars invested by stockholders. Cogent Communications' management efficiency ratios could be used to measure how well Cogent Communications manages its routine affairs as well as how well it operates its assets and liabilities. As of now, Cogent Communications' Return On Tangible Assets are increasing as compared to previous years. The Cogent Communications' current Return On Assets is estimated to increase to 0.42, while Return On Capital Employed is forecasted to increase to (0.04). As of now, Cogent Communications' Other Assets are increasing as compared to previous years. The Cogent Communications' current Other Current Assets is estimated to increase to about 125.2 M, while Net Tangible Assets are forecasted to increase to (443.4 M).
Last ReportedProjected for Next Year
Book Value Per Share 12.87  12.22 
Tangible Book Value Per Share 2.89  2.74 
Enterprise Value Over EBITDA 3.44  3.61 
Price Book Value Ratio 5.91  6.21 
Enterprise Value Multiple 3.44  3.61 
Price Fair Value 5.91  6.21 
Enterprise Value5.4 B5.6 B
The management team at Cogent Communications has a track record of steering the company towards sustained growth. Evaluating their strategies helps in understanding the stock's long-term potential.
Dividend Yield
0.0515
Forward Dividend Yield
0.0515
Forward Dividend Rate
3.98
Beta
0.38

Basic technical analysis of Cogent Stock

As of the 25th of December, Cogent Communications shows the Risk Adjusted Performance of 0.0517, downside deviation of 1.61, and Mean Deviation of 1.29. Cogent Communications technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.

Cogent Communications' insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Cogent Communications insiders, such as employees or executives, is commonly permitted as long as it does not rely on Cogent Communications' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Cogent Communications insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
 
John Chang six days ago
Acquisition by John Chang of 485 shares of Cogent Communications subject to Rule 16b-3
 
Kilmer Henry W over a week ago
Disposition of 4800 shares by Kilmer Henry W of Cogent Communications at 75.613 subject to Rule 16b-3
 
James Bubeck over two weeks ago
Disposition of 1920 shares by James Bubeck of Cogent Communications at 76.5966 subject to Rule 16b-3
 
Thaddeus Weed over three weeks ago
Disposition of 4800 shares by Thaddeus Weed of Cogent Communications at 81.58 subject to Rule 16b-3
 
Schaeffer Dave over three weeks ago
Disposition of 24364 shares by Schaeffer Dave of Cogent Communications at 82.685 subject to Rule 16b-3
 
Schaeffer Dave over three weeks ago
Disposition of 35636 shares by Schaeffer Dave of Cogent Communications at 83.762 subject to Rule 16b-3
 
De Sa Paul over two months ago
Acquisition by De Sa Paul of 1452 shares of Cogent Communications subject to Rule 16b-3
 
John Chang over three months ago
Disposition of 1400 shares by John Chang of Cogent Communications at 71.67 subject to Rule 16b-3
 
Kennedy Sheryl Lynn over three months ago
Disposition of 1550 shares by Kennedy Sheryl Lynn of Cogent Communications at 71.0573 subject to Rule 16b-3
 
Thaddeus Weed over three months ago
Disposition of 2400 shares by Thaddeus Weed of Cogent Communications at 69.6757 subject to Rule 16b-3
 
John Chang over three months ago
Disposition of 2055 shares by John Chang of Cogent Communications at 74.0 subject to Rule 16b-3
 
Ferguson Lewis H over three months ago
Disposition of 1550 shares by Ferguson Lewis H of Cogent Communications at 72.6155 subject to Rule 16b-3

Cogent Communications' Outstanding Corporate Bonds

Cogent Communications issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Cogent Communications uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Cogent bonds can be classified according to their maturity, which is the date when Cogent Communications Group has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand Cogent Communications' technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Cogent Communications' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider Cogent Communications' intraday indicators

Cogent Communications intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Cogent Communications stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

Cogent Communications Corporate Filings

F4
19th of December 2024
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
13A
8th of November 2024
An amended filing to the original Schedule 13G
ViewVerify
8K
7th of November 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
22nd of October 2024
Other Reports
ViewVerify
Cogent Communications time-series forecasting models is one of many Cogent Communications' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Cogent Communications' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Cogent Stock media impact

Far too much social signal, news, headlines, and media speculation about Cogent Communications that are available to investors today. That information is available publicly through Cogent media outlets and privately through word of mouth or via Cogent internal channels. However, regardless of the origin, that massive amount of Cogent data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Cogent Communications news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Cogent Communications relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Cogent Communications' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Cogent Communications alpha.

Cogent Communications Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Cogent Communications can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Cogent Communications Corporate Executives

Elected by the shareholders, the Cogent Communications' board of directors comprises two types of representatives: Cogent Communications inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Cogent. The board's role is to monitor Cogent Communications' management team and ensure that shareholders' interests are well served. Cogent Communications' inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Cogent Communications' outside directors are responsible for providing unbiased perspectives on the board's policies.
Thaddeus WeedCFO, Principal Accounting Officer and TreasurerProfile
Thaddeus CPACFO VPProfile
David KappVP CTOProfile
When determining whether Cogent Communications offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Cogent Communications' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Cogent Communications Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cogent Communications Group Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cogent Communications Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons.
You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Is Diversified Telecommunication Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cogent Communications. If investors know Cogent will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cogent Communications listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
228.092
Dividend Share
3.88
Earnings Share
0.69
Revenue Per Share
20.531
Quarterly Revenue Growth
(0.09)
The market value of Cogent Communications is measured differently than its book value, which is the value of Cogent that is recorded on the company's balance sheet. Investors also form their own opinion of Cogent Communications' value that differs from its market value or its book value, called intrinsic value, which is Cogent Communications' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cogent Communications' market value can be influenced by many factors that don't directly affect Cogent Communications' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Cogent Communications' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Cogent Communications is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cogent Communications' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.