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NEW YORK (TheStreet) -- Cogent Communications (CCOI) - Get Report has been downgraded by TheStreet Ratings from Buy to Hold with a ratings score of C.  TheStreet Ratings Team has this to say about their recommendation:

TheStreet Ratings team rates COGENT COMMUNICATIONS HLDGS as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate COGENT COMMUNICATIONS HLDGS (CCOI) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, premium valuation and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 2.6%. Since the same quarter one year prior, revenues slightly increased by 7.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for COGENT COMMUNICATIONS HLDGS is rather high; currently it is at 57.58%. It has increased from the same quarter the previous year.
  • Net operating cash flow has decreased to $17.94 million or 38.74% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • You can view the full analysis from the report here: CCOI Ratings Report