WASHINGTON, D.C. — John B. Chang, Vice President and Chief Legal Officer at Cogent Communications (NASDAQ:CCOI) Holdings, Inc. (NASDAQ:CCOI), sold a portion of his holdings in the company. According to a recent SEC filing, Chang sold 2,280 shares of common stock on November 12, 2024, at an average price of $80.4068 per share. The total value of the transaction amounted to $183,327.
Following this sale, Chang retains direct ownership of 69,300 shares. Additionally, he holds 900 shares indirectly, attributed to ownership by his minor children. The transaction reflects Chang's ongoing management of his stock portfolio within the company, a leading provider in the communication services sector.
In other recent news, Cogent Communications reported mixed trends in its Q3 2024 results. The company's total revenue reached $257.2 million, despite a decline in the T-Mobile commercial services agreement and a reduction of low-margin off-net connections. Notably, Cogent saw a significant surge in wavelength and IPv4 leasing revenue and also realized cost savings of $165 million from the Sprint Global Markets acquisition.
The company's EBITDA increased to $60.9 million and its quarterly dividend continued its trend of consecutive rises, reaching $0.995 per share. Despite a decline in enterprise business revenues and off-net revenue, Cogent's strategic positioning to serve small and medium-sized businesses and its focus on expanding profitable services for large enterprise customers are recent developments that highlight its resilience.
While the company anticipates challenges with net services due to contractual obligations, it also expects long-term average revenue growth to be between 5% to 7%. Cogent is also planning to add over 100 carrier-neutral data centers annually for the next several years, further demonstrating its commitment to growth and shareholder value.
InvestingPro Insights
John B. Chang's recent sale of Cogent Communications Holdings, Inc. (NASDAQ:CCOI) shares comes at a time when the company's stock has shown significant momentum. According to InvestingPro data, CCOI has experienced a large price uptick over the last six months, with a 39.1% total return in that period. This strong performance aligns with the company's long-term track record, as InvestingPro Tips highlight that CCOI has delivered a high return over the last decade.
Despite the recent stock sale by the company's Chief Legal Officer, Cogent Communications maintains a strong dividend profile. An InvestingPro Tip reveals that the company has raised its dividend for 13 consecutive years, demonstrating a commitment to shareholder returns. This is further supported by the current dividend yield of 4.95%, which may be attractive to income-focused investors.
However, potential investors should note that CCOI is trading at high valuation multiples across several metrics. The company's P/E ratio stands at 95.69, indicating a premium valuation compared to many peers in the communication services sector. This high valuation suggests that the market has priced in significant growth expectations for Cogent Communications.
For those interested in a deeper analysis, InvestingPro offers 12 additional tips for CCOI, providing a more comprehensive view of the company's financial health and market position.
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