Cogent Communications VP sells $362,942 in stock
Henry W. Kilmer, Vice President of Network Strategy at Cogent Communications (NASDAQ:) Holdings, Inc. (NASDAQ:CCOI), recently sold 4,800 shares of the company’s common stock, according to a filing with the Securities and Exchange Commission. The shares were sold at an average price of $75.613 each, amounting to a total transaction value of $362,942. Following the sale, Kilmer retains ownership of 33,800 shares in the company. This transaction was reported on December 13, 2024, for activities conducted on December 12, 2024.The sale comes as CCOI trades near $75.43, with the stock showing remarkable momentum, gaining nearly 50% over the past six months. According to InvestingPro analysis, the company currently trades at premium multiples across various metrics, suggesting a rich valuation. For deeper insights into insider transactions and comprehensive valuation metrics, InvestingPro offers exclusive access to detailed analysis and 12+ additional investment tips for CCOI.
In other recent news, Cogent Communications has been experiencing significant developments. The company’s third quarter of 2024 results revealed 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 achieved significant cost savings from the Sprint Global Markets acquisition and saw a surge in wavelength and IPv4 leasing revenue.
UBS initiated coverage on Cogent Communications stock with a Buy rating, anticipating growth from the Sprint acquisition. The firm projects a performance increase for Cogent in 2025 and beyond as network reconfiguration efforts are finalized. UBS also forecasts over $500 million in EBITDA for Cogent by 2028, exceeding current street estimates.
Cogent plans to add over 100 carrier-neutral data centers annually for the next several years, focusing on expanding profitable services for large enterprise customers. However, the company reported a decline in enterprise business revenues and off-net revenue. Despite these challenges, Cogent remains optimistic due to strong market demand for its data center facilities and interest in long-term leases. Transactions related to data center leases or sales are expected before June 2025.
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