Cogent Communications Holdings, Inc. (CCOI) Company Bio
Cogent Communications Holdings provides high-speed Internet access and Internet protocol communications services primarily to small and medium-sized businesses, communications service providers, and other bandwidth-intensive organizations in North America, Europe, and Japan. The company was founded in 1999 and is based in Washington, District of Columbia.
CCOI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CCOI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Cogent Communications Holdings Inc ranked in the 46th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Cogent Communications Holdings Inc, consider:
Its compound free cash flow growth rate, as measured over the past 5.5 years, is 0.3% -- higher than 68.26% of stocks in our DCF forecasting set.
Cogent Communications Holdings Inc's weighted average cost of capital (WACC) is 10%; for context, that number is higher than 69.31% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than 65.53% of stocks in its sector (Communication Services).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Communication Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CCOI, try CHL, CHA, RCI, TDS, and VZ.
VP of IP Engineering Kilmer Henry W filed a Form 4 with the SEC on Friday, December 4. The insider sold 2,400 shares of Cogent Comms Hldgs Inc (NASDAQ:CCOI) at an average price of $58.01. After the transaction, the executive's stake in Cogent Comms Hldgs Inc. moved to 31,200 shares. Cogent Comms was trading 0.6% lower from the previous closing price.The Importance of Insider Transactions While transactions from an insider shouldn't be used as the sole item to make an investment or trading decision, an insider buying or selling stock in their company can be a good added factor that leads to more conviction in a decision.When an insider buys stock after an important sell off, that can indicate the insider's faith in the success of the organization. Henceforth, if the stock is bought at ne...