Taylor Frigon Capital Exits Cogent Communications Holdings Position
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
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Source: Fool
- Complete Exit: Taylor Frigon Capital Management fully exited its position in Cogent Communications Holdings in Q4, selling 73,271 shares worth approximately $2.81 million, indicating a lack of confidence in the company's future performance.
- Significant Stock Decline: As of January 23, shares of Cogent were priced at $24.29, reflecting a staggering 65.4% drop over the past year, vastly underperforming the S&P 500's roughly 14% gain during the same period, highlighting market skepticism about its growth prospects.
- Poor Financial Performance: Cogent's latest results showed that while wavelength revenue surged year-over-year and EBITDA grew significantly to over 20%, core service revenue declined sequentially, and operating cash flow remained thin, raising concerns about the sustainability of future cash flows among investors.
- Portfolio Reassessment: This exit reflects a mismatch between the demands of Cogent and the investment strategy of Taylor Frigon, whose top holdings are skewed towards semiconductors, software, and infrastructure, indicating a strategic reevaluation of investments in capital-intensive network operators.
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Analyst Views on CCOI
Wall Street analysts forecast CCOI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CCOI is 30.20 USD with a low forecast of 23.00 USD and a high forecast of 55.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
3 Buy
7 Hold
1 Sell
Hold
Current: 24.040
Low
23.00
Averages
30.20
High
55.00
Current: 24.040
Low
23.00
Averages
30.20
High
55.00
About CCOI
Cogent Communications Holdings, Inc. is a facilities-based provider of Internet access, private network services, optical wavelength, and optical transport services and data center colocation space and power. The Company, through its own facilities, offers on-net Internet access services to customers located in buildings that are physically connected to its network. Its network is specifically designed and optimized to transmit packet routed data. Its on-net service consists of high-speed Internet access and private network services offered at speeds ranging from 100 megabits per second (Mbps) to 400 gigabits per second (Gbps). The Company delivers its services on its network in 56 countries across North America, Europe, South America, Oceania and Africa. Its corporate customers are located in multi-tenant office buildings (MTOBs), which include law firms, advertising and marketing firms, as well as healthcare providers, and other professional services businesses, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Taylor Frigon Capital Exits Cogent Communications Holdings Position
- Complete Exit: Taylor Frigon Capital Management fully exited its position in Cogent Communications Holdings in Q4, selling 73,271 shares worth approximately $2.81 million, indicating a lack of confidence in the company's future performance.
- Significant Stock Decline: As of January 23, shares of Cogent were priced at $24.29, reflecting a staggering 65.4% drop over the past year, vastly underperforming the S&P 500's roughly 14% gain during the same period, highlighting market skepticism about its growth prospects.
- Poor Financial Performance: Cogent's latest results showed that while wavelength revenue surged year-over-year and EBITDA grew significantly to over 20%, core service revenue declined sequentially, and operating cash flow remained thin, raising concerns about the sustainability of future cash flows among investors.
- Portfolio Reassessment: This exit reflects a mismatch between the demands of Cogent and the investment strategy of Taylor Frigon, whose top holdings are skewed towards semiconductors, software, and infrastructure, indicating a strategic reevaluation of investments in capital-intensive network operators.
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Cogent to Host Q4 2025 Earnings Call on February 20
- Earnings Call Announcement: Cogent Communications will host a conference call at 8:30 a.m. (ET) on February 20, 2026, to present its operating results for Q4 and full year 2025, demonstrating the company's commitment to transparency and investor communication.
- Participation Details: The call is open to all, with dial-in numbers of 1-888-596-4144 for U.S. and Canadian callers and 1-646-968-2525 for international participants, recommending callers to join 15 minutes early to ensure connection, reflecting the company's focus on participant experience.
- Service Overview: Cogent is a facilities-based provider of low-cost, high-speed Internet access and private network services, operating in 302 markets globally, highlighting its competitive position in bandwidth-intensive sectors.
- Future Outlook: The release indicates that future performance may be influenced by various factors, emphasizing the company's sensitivity to risk management and market changes, which reflects a cautious approach to future growth.
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