Accessibility StatementSkip Navigation WASHINGTON, Oct. 21, 2025 /PRNewswire/ -- Cogent Communications Holdings, Inc. ("Cogent") (NASDAQ: CCOI) will host a conference call at 8:30 a.m. (ET) on November 6, 2025 to present Cogent's operating results for the third quarter of 2025 and answer questions. Cogent will issue a press release announcing the operating results at 7:00 a.m. (ET) on November 6, 2025. Participation is open to all parties and this call may be accessed as follows: | Dial-in Numbers: | 1-888- ...

Core Viewpoint - The article discusses several high-yield dividend growth stocks, highlighting their potential for dividend increases and the importance of upcoming announcements for investors [2][3][4]. Group 1: High-Yield Dividend Growth Stocks - Hess Midstream LP (HESM) is a master limited partnership (MLP) with significant midstream energy assets in North Dakota, including over 1,400 miles of pipelines and a processing capacity of 500 million cubic feet per day [3][4]. - Delek Logistics Partners LP (DKL) has established itself as a major player in the Permian Basin, with a history of 50 consecutive quarterly dividend increases, showcasing its strong cash flow generation [5][6]. - Cogent Communications (CCOI) is a large ISP with over 124,000 route miles of optical fiber, but it faces challenges such as declining revenues and high leverage, making its upcoming dividend announcement critical [7][8][9]. Group 2: Dividend Strategies and Expectations - Redwood Trust (RWT), a mortgage REIT, is transitioning towards a core operating strategy focused on residential mortgages, which could benefit from Federal Reserve easing, but its legacy investments remain a drag on results [11][12][13]. - Dynex Capital (DX) is another mREIT with a high yield of over 16%, but it has a history of dividend cuts; its next announcement is anticipated to be influenced by interest rate spreads [14][15][17].

Core Insights - Recurve Capital reported a strong performance in Q2 2025, achieving a gross return of +31%, significantly outperforming the S&P 500 (+10.6%) and Nasdaq (+17.8%) [1] - Year-to-date, the fund has returned +14.8% gross and +12% net [1] Company Analysis: Cogent Communications Holdings, Inc. (NASDAQ:CCOI) - Cogent Communications provides high-speed Internet access, private network, and data center colocation services [2] - The stock experienced a one-month return of +10.17% but has lost 46.54% of its value over the past 52 weeks, closing at $40.39 on October 2, 2025, with a market capitalization of $1.986 billion [2] - Cogent was identified as the largest detractor from Recurve Capital's performance year-to-date, despite expectations for future positive contributions [3] Hedge Fund Interest - Cogent Communications was held by 30 hedge fund portfolios at the end of Q2 2025, unchanged from the previous quarter [4] - While acknowledging Cogent's potential, the company believes that certain AI stocks present greater upside potential and lower downside risk [4]

Group 1: Company Analysis - Chevron Corp is highlighted for its strong performance in the energy sector, benefiting from rising oil prices and increased demand for energy [1] - Cogent Communications Holdings Inc is noted for its growth in the telecommunications industry, with a focus on expanding its fiber network to meet increasing data demands [1] - T-Mobile US Inc continues to show robust subscriber growth, driven by competitive pricing and enhanced network capabilities [1] Group 2: Industry Trends - The energy sector is experiencing a rebound, with oil prices climbing significantly, which is positively impacting companies like Chevron [1] - The telecommunications industry is undergoing rapid transformation, with companies like Cogent Communications investing heavily in infrastructure to support higher data usage [1] - The competitive landscape in the telecom sector is intensifying, with T-Mobile US Inc leveraging its market position to attract new customers [1]

Core Thesis - Cogent Communications Holdings, Inc. (CCOI) is viewed as a deep-value investment opportunity despite its high leverage and transitional status in the telecom sector, with significant assets and growth potential being underappreciated [2][5]. Financial Overview - As of September 18th, CCOI's share price was $37.92, with trailing and forward P/E ratios of 94.04 and 5.00k respectively [1]. - The company has $2.3 billion in debt and has experienced net losses, raising concerns about its financial health [2]. Strategic Developments - A key event for Cogent was the acquisition of Sprint's wireline assets from T-Mobile for $1, which included extensive fiber assets and a $700 million subsidy over 54 months, enhancing Cogent's service capabilities [3]. - The acquisition has allowed Cogent to reactivate dormant assets into high-margin optical wavelength services and data centers, expanding its operational footprint significantly [3]. Growth Catalysts - Cogent benefits from a tax shield through 2030, which is expected to enhance cash generation from EBITDA [4]. - The company plans to monetize 24 non-core data centers and 38 million IPv4 addresses, potentially generating $1.8–$2.6 billion, which could eliminate net debt and reduce interest costs [4]. - The wavelength business is projected to reach $500 million in revenue by 2028, with gross margins near 90%, contributing to long-term EBITDA growth towards $500 million and free cash flow of $278 million [4]. Market Positioning - Despite concerns over CEO share sales, these actions are not fundamentally linked to the company's performance, as Cogent focuses on high-margin wavelengths and data center interconnects [5]. - The combination of asset monetization, debt reduction, and growth in optical transport positions Cogent as a compelling investment with a favorable risk/reward profile [5]. Historical Context - The stock price of CCOI has depreciated approximately 48.06% since a previous bullish thesis was published in January 2025, yet the underlying network and operational capabilities remain intact [6].

Group 1 - Madison Small Cap Fund's second-quarter 2025 performance was impacted by the liberation day tariffs, which initially caused a decline in equities and treasuries, followed by a rebound due to a pause in tariff implementation and positive macroeconomic data [1] - The Russell 2000 Index increased by 8.5% for the quarter and is down only 1.79% year-to-date, while the Madison Small Cap Fund (class Y) returned 4.42% in the quarter, underperforming compared to the Russell 2000 and Russell 2500 [1] - The fund highlighted Cogent Communications Holdings, Inc. (NASDAQ:CCOI) as a key stock, which has seen a one-month return of 0.35% but a significant decline of 48.00% over the last 52 weeks, with a market capitalization of $1.852 billion as of September 17, 2025 [2] Group 2 - The underperformance of Madison Small Cap Fund was attributed to stock selection in Information Technology and Consumer Staples, with Cogent Communications Holdings, Inc. being the worst-performing IT stock [3] - Cogent Communications, which carries nearly 25% of the world's internet traffic, recently launched Wavelength Services aimed at providing high-capacity, low-latency networking connections, but the company slightly missed growth expectations for this service, leading to a sharp decline in stock price [3] - The company has been viewed as experiencing early growing pains with its new service, and the fund has taken this opportunity to increase its investment in CCOI, believing the market reaction to be an overreaction [3]

Group 1: Avista Corp. - Avista has a history of raising dividends for 22 consecutive years, with the most recent increase on Feb. 12, raising the quarterly payout from $0.475 to $0.49 per share, resulting in an annual figure of $1.96 per share [3] - The current dividend yield for Avista is 5.39% [3] - As of June 30, Avista's annual revenue was $1.96 billion, and Q2 2025 revenues were reported at $411 million with an EPS of $0.17, both below consensus estimates [4] Group 2: Cogent Communications - Cogent Communications has increased its dividend for 51 consecutive years, with the latest hike on May 8, raising the quarterly payout from $1.01 to $1.015 per share, equating to an annual figure of $4.06 per share [6] - The current dividend yield for Cogent Communications is 11.30% [6] - As of June 30, the company's annual revenue was $1 billion, and Q2 2025 revenues were $266.17 million, which missed the consensus estimate of $246.83 million, while the per-share loss of $1.21 was better than the consensus of $1.08 loss per share [7] Group 3: Mondelez International - Mondelez International is involved in the manufacturing, marketing, and selling of snack food and beverage products globally [8]

Group 1 - The article discusses Cogent Communications Holdings, Inc. (NASDAQ: CCOI) and presents a positive demand outlook due to favorable secular tailwinds and visibility in the market [1] - The author emphasizes the importance of a diversified investment approach, incorporating fundamental, technical, and momentum investing strategies to enhance the investment process [1] Group 2 - The article serves as a platform for tracking investment ideas and connecting with like-minded investors, highlighting the author's intent to share insights and performance [1]

Group 1 - The article discusses Cogent Communications Holdings, Inc. (NASDAQ: CCOI) and presents a positive demand outlook due to favorable secular tailwinds and visibility in the market [1] - The author emphasizes the importance of dividends as part of the investment thesis for Cogent Communications [1] Group 2 - The author has a diverse investing background, utilizing fundamental, technical, and momentum investing strategies to enhance the investment process [1] - The purpose of writing on Seeking Alpha is to track investment ideas and connect with like-minded investors [1]

Cogent Communications Conference Call Summary Company Overview - **Company**: Cogent Communications Holdings Inc. (NasdaqGS:CCOI) - **Date of Conference**: September 16, 2025 Key Points Industry and Market Outlook - **End Markets**: The company operates in three segments: enterprise, corporate, and net-centric business [3][4] - **Enterprise Business**: - Acquired from T-Mobile, this segment has seen a compounded decline of 10.6% per year over the last three years, which accelerated to nearly 20% post-acquisition due to purging unprofitable products [6] - Currently stabilizing at zero margin with a negative growth rate of 1-2% [6] - Targeting a return to a 20% margin over the next two years [6] - **Corporate and Net-Centric Business**: - Corporate segment grew at over 11% annually from 2005 to 2020, fell to -9% during the pandemic, and has since rebounded to 3-4% growth [7] - The net-centric segment generates 97% of traffic, growing at 8-9% after a pandemic peak of 26% [7] - Combined legacy segments are growing at mid-single digits (~5%) with 100 basis points of margin expansion annually [7] Financial Performance and Investments - **Sprint Acquisition**: - Acquired for $700 million over 54 months, with a net present value of $244 million in payments due from T-Mobile [8] - The acquisition included 19,000 route miles of intercity fiber and 1,200 route miles of metropolitan fiber [9] - **Data Center Expansion**: - Converted 125 sites into data centers, expanding from 55 to 180 facilities, totaling approximately 2 million square feet and 212 megawatts of power [11] - 24 facilities earmarked for divestiture, with ongoing negotiations for sale or lease [18] Growth Strategy and Market Share - **Wavelength Services**: - Targeting a 25% market share in a $2 billion addressable market, with a current revenue run rate of $36 million annually [10][14] - Competing against Lumen and Zayo, with a focus on intercity segments [14] - Competitive advantages include a larger footprint, faster provisioning, unique physical routes, and lower pricing [15][16] Capital Allocation and Future Outlook - **Capital Expenditure**: - Anticipated capital spending of $100 million annually, with $40 million in principal payments on capital leases [21] - Plans to use proceeds from divestitures for stock buybacks, dividends, or reducing leverage [19][20] Challenges and Market Conditions - **Corporate Business Growth**: - The corporate segment has seen a significant increase in vacancy rates from 6% to over 18% [22] - Current growth rate is stagnant at 3-4%, with a slow recovery from pandemic impacts [23] Additional Insights - **Cost Reduction**: - Ongoing efforts to reduce $20 million in annual expenses from the acquired Sprint business, expected to complete by the end of 2026 [21] - **Market Position**: - Cogent's credibility as the world's largest transfer provider supports its competitive positioning in the market [16] This summary encapsulates the key insights from the Cogent Communications conference call, highlighting the company's current performance, strategic initiatives, and market challenges.